Agro-industrial complex of Russia. Overview

The agricultural sector is one of the important areas of development of the Russian economy, which accounts for about 4% of Russia's GDP. The national agro-industrial complex is based on two key sectors - crop and livestock production. In general, despite the difficulties associated with the pandemic, the Russian agro-industrial complex has shown good results. We can note the high indicators of pig breeding, as one of the most dynamically developing industries. The impetus for the development of livestock and poultry farming, in general, was given by measures aimed at import substitution and subsidizing the industry.

The volume of agricultural production in Russia at the end of 2020 incomparable prices increased by 1.5% (in 2019 the dynamics were higher by 4.3%), and in real prices, the growth exceeded 5% (to 6.11 trillion rubles). According to experts, in 2020, the agro-industrial complex of Russia showed positive dynamics, despite the low growth rates of demand for agri-food products within the country due to falling incomes of the population (maximum since 2014), a difficult epidemiological situation (the COVID-19 coronavirus pandemic) and the absence population growth. One of the most promising areas of plant growing in Russia can be considered greenhouse vegetable growing. Since 2016, the total area of greenhouses in Russia has increased by more than 1.5 times and amounted to about 3 thousand hectares. Vegetable production rose more than 80% in the same period, with a record harvest of 1.37 million tonnes last year.

In 2020, the production of cattle in Russia increased by 0.3%. The production of poultry meat increased by the same amount. Egg production amounted to 44.8 billion pieces, including in agricultural organizations the indicator increased by 64.6 million pieces (+ 0.2%). In recent years, the industry has shown stable results, which makes it possible to fully meet the needs of the population and contributes to a decrease in imports. Further development of domestic consumption of poultry meat is possible by increasing the production of turkey and other niche products. By the beginning of 2021, Russia had turned from one of the largest importers to one of the largest exporters of pork, and its consumption level peaked in 30 years. The fully realized potential of import substitution and satisfied domestic demand make producers look for profitability in foreign markets: in 2020, compared to 2019, the export of pork and by-products increased by 86% to 192.6 thousand tons. With a favorable epizootic situation, pork export by the end of 2021 will set a new record - 250 thousand tons, the Rosselkhozbank predicts in the quarterly report on the state of the meat market in Russia.

In the next 3-5 years, about 40 investment projects in the field of livestock and poultry farming are expected to be implemented in various regions of Russia - from the Center to the Far East. The total volume of investments on them exceeds 112 billion rubles.

If your company manufactures products for agriculture, we will be happy to advise you on how to increase sales of your products in Russia. CSDA has extensive experience in this market segment, for about 6 years we have been successfully selling equipment to the leading Spanish company Exafan.