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Russian grain exports

From Wikipedia, the free encyclopedia

TheRussian grain export is the foreign trade operations for the sale ofgrain, primarilywheat grain, fromRussia to other countries. Grain has been a traditional item of export income for Russia for centuries, providing the Russian Federation in the 21st century with leadership among the main grain suppliers to the world market along with theEU (2nd place 2019/20), United States (3rd place),Canada (4th place),Ukraine (5th place).[1]

Political aspects

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Historically, Russianwheat exports were preceded by wheat exports from the Black Seasteppes toAncient Greece andAncient Rome. The long existence of grain exports in this direction is associated with the peculiarities of the landscape of the Northern Black Sea region, which are extremely favorable for the growth of wheat.[citation needed]

Grain export of Russia for a long time had not only economic, but also significant external and internal political importance for the country. It became the subject of public discussion and political speculation in various historical periods of the country's life. Since wheat has been one of the main Russian export goods for a long time, the proceeds from its sale were often used for cross-financing of other sectors of the economy, primarily industry.[2][3]

At the same time, the average yieldgrain in therisky farming zone (80% of the Russian territory)[4] is low: self-three instead of self-six, self-seven in Western and Southern Europe.[5]

Due to the difference in natural and geographical conditions in Eastern Europe, the aggregate of the most necessary needs of an individual was significantly greater than in Western Europe, and the conditions for their satisfaction are much more difficult and worse, noted the author of the book "Great Russian Plowman"L.V. Milov.[5] Therefore, the volume of the surplus product of grain production was always much less, and with the need of landowners to receive incomes comparable to incomes in Western European societies, they obviously gave rise to the catch phrase attributed to the Minister of Finance of the Russian Empire Vyshnegradskiy "we are undernourished, but we will take out!".[6]

Historical background

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Russian Empire

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Prior to 1762, the export of Russian grain was limited to the port ofArkhangelsk.Peter III opened grain exports from ports on the Baltic Sea such asSt. Petersburg, where grain shipped through internal river waterways were collected for export.[7] Significant expansion in exports occurred in the 1860s and 1870s due to theEmancipation reform of 1861 and the opening of new railways. In some years during the late 19th century, over half of Russia's wheat production were exported.[8] By 1903, Russia had surpassed theUnited States as the world's largest wheat exporter, and was also a major exporter ofoats,barley andrye.[9]

Soviet Union

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During the late 1920s and early 1930s,collectivization policies caused a decline in Russian/Soviet grain production. Regardless, around 12 million tonnes of grain were exported between 1929 and 1933, with the proceeds being used to purchase agricultural machinery.[10] It was a grain exporter again afterWorld War II, averaging around 6 million tonnes of net exports per year between 1956 and 1962. Following a poor harvest in 1963, it became a net importer, and continued to do so untilits dissolution due to increasing demand for grain from the Soviet meat industry.[11] Internationalgrain trade by the USSR was handled by the state monopoly corporationExportkhleb.[12]

Russian Federation grain exports

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Russian grain production collapsed immediately after the fall of the Soviet Union, with production going down by around one-third. By the early 2000s, however, Russia had once again become a net grain exporter.[13] In 2023–2024, Russia exported 60 million tonnes of grains (mostly wheat), roughly half its total grain production. About two-thirds (55 million out of 83 million tonnes) of its wheat production was exported in that period.[14] Wheat was Russia's second largest non-fossil fuel export after gold.[15]

State participation

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After the USSR liquidation, the Russian state did not set itself the explicit task of participating in grain exports, however, quite early it tried to enter the grain market with the officially declared goals of supporting domestic producers andfood security, ensuring public food purchases and organizing markets. The latter also meant the grain trade market, including for export. Work in this direction has been consistently delegated by the state to a number of organizational successive structures:

  • In October 1994, for these purposes, the Federal Food Corporation was created under the Ministry of Agriculture and Food of the Russian Federation. The tasks assigned to it were not implemented in any full measure. On the fact of embezzlement of funds allocated by the state for the operation of the company, the General Prosecutor's Office opened a criminal case.[16]
  • In September 1997, the Federal Food Corporation was liquidated, and its functions were transferred to the Federal State Unitary Enterprise "Federal Agency for Regulation of the Food Market" newly created under the Ministry of Agriculture and Food of the Russian Federation. Already during this period, the agency focused as much as possible on the grain market, paying little attention to other segments of the food market.
  • On March 21, 2007FSUE was reorganized into OJSC "Agency for Food Market Regulation".
  • In 2009, OJSC changed its name to OJSC "United Grain Company". Subsequently, the state carried out a partial privatization of the company, retaining a controlling stake – 50% plus one share.

See also

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References

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  1. ^Владимир Демчук (2020-04-15)."ТОП-10 стран-производителей пшеницы".Latifundist.com (in Russian). Retrieved2020-09-30.
  2. ^"Экспорт зерна из России: история и современность".vvs-info.ru. Retrieved2020-11-03.
  3. ^Р. Р. Гумеров (April 19, 2019)."Российский Зерновой Экспорт:не Повторять Ошибок Прошлого".Журнал «ЭКО».47 (1): 5.doi:10.30680/eco0131-7652-2017-1-5-19.ISSN 0131-7652.
  4. ^Екатерина Копалкина (2017-12-04)."Эксперты в 2,5 раза повысили оценку заброшенных сельхозугодий в России".РБК (in Russian). Retrieved2020-09-30.
  5. ^abМилов, Леонид Васильевич (1998)."Великорусский пахарь и особенности российского исторического процесса".sites.google.com. Росспэн. Retrieved2020-09-30.
  6. ^His colleague in the Ministry of Finance P. H. Schwanebach explains the origin of the phrase as follows: “I cannot forget the exclamation that escaped him in the spring of 1891, when, with an impending crop failure, he began to fear the outflow of gold:“ We ourselves will not eat, but we will take it out. ” The humor of I.A. (Vyshnegradskiy – B.N.) and his everlasting willingness to do something even to lie down on the bones somewhat brightens up the cruelty of this saying. " Mironov B.N. The welfare of the population and revolution in imperial Russia: XVIII – early XX century. – M .: New Chronograph, 2010. – P. 644.
  7. ^Jones, Robert E. (1984)."Getting the Goods to St. Petersburg: Water Transport from the Interior 1703-1811".Slavic Review.43 (3):413–433.doi:10.2307/2499399.ISSN 0037-6779.
  8. ^Falkus, M. E. (1966)."Russia and the International Wheat Trade, 1861-1914".Economica.33 (132):416–429.doi:10.2307/2552721.ISSN 0013-0427.
  9. ^Goodwin, Barry K.; Grennes, Thomas J. (October 1998). "Tsarist Russia and the World Wheat Market".Explorations in Economic History.35 (4):405–430.doi:10.1006/exeh.1998.0706.
  10. ^Hunter, Holland (1988). "Soviet Agriculture with and without Collectivization, 1928-1940".Slavic Review.47 (2):203–216.doi:10.2307/2498462.
  11. ^Johnson, D. Gale (1975)."The Soviet Grain Shortage: A Case of Rising Expectations".Current History.68 (406):245–248.ISSN 0011-3530.
  12. ^"EUGENE A. "GENE" BANNIKOV"(PDF). The Association for Diplomatic Studies and Training Foreign Affairs Oral History Project. 7 May 2008.
  13. ^Liefert, William M.; Liefert, Olga (25 March 2020)."Russian agricultural trade and world markets".Russian Journal of Economics. pp. 56–70.doi:10.32609/j.ruje.6.50308. Retrieved3 February 2025.
  14. ^"Focus on Russia - World Grain".world-grain.com. 21 October 2024. Retrieved28 January 2025.
  15. ^"What else does Russia export, beyond oil and gas?".World Economic Forum. 18 March 2022. Retrieved3 February 2025.
  16. ^"Продовольственная корпорация кормила только своих".www.kommersant.ru (in Russian). 2001-05-25. Retrieved2020-12-06.
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