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- "There has never been an example of such rapid development of the agricultural sector in the world as in Russia"
"There has never been an example of such rapid development of the agricultural sector in the world as in Russia"
Russia will retain its leadership in the global grain export market, and domestic wines will occupy even more space on store shelves. The Minister of Agriculture of the Russian Federation Oksana Lut said this in an exclusive interview with Izvestia at the SPIEF. She also answered the question of when potatoes would become cheaper, and made a forecast for the harvest. For more information, see our article.
"There is a lot of work to be done to create expensive and high-tech industries"
— One of the themes of this year's SPIEF is: "New solutions in agriculture are the keys to global food security." What kind of solutions are we talking about? What breakthrough technologies are already changing the agro-industrial complex today?
— Over the past 10 years, we have made an incredible breakthrough in food production. Perhaps there was no example in the world of such rapid development of the agricultural sector as in Russia. Today, with all the variety of assortment in stores, almost everything that we see on the shelves is domestic products.
But while we were moving towards increasing production volumes, we were less concerned with technology issues. Now we need to take the next step and achieve technological leadership in our industry. For this purpose, a new national project "Technological provision of food security" has been launched since 2025, within the framework of which work is underway in several areas at once.
In particular, approaches to plant breeding are changing. Classical methods are complemented by marker and genomic breeding technologies. This allows you to reduce the development time as much as possible. Platforms for genomic breeding of cultivated plants are currently being created within the framework of world-class scientific centers based on the Kurchatov Institute and the Timiryazev Academy.
The second key area is animal genetics. This includes the development of breeding value indices for cattle, which will identify more productive animals to increase milk production. By 2030, it should be increased in the Russian Federation by 4.5 million tons.
Another important area is the production of our own highly effective veterinary medicines. In this area, we also clearly understand what needs to be done and how in the next six years. Three scientific and technical projects have already been announced for implementation this year. According to their results, Russian animal breeders will receive 19 new vaccines. In this way, we will increase the "immunity" of the livestock industry.
A large block of tasks is related to providing the industry with biotechnological products. This is all about the deep processing of grain and the production of components for the feed and food industries. There is a lot of work to be done here to create expensive and high-tech industries. Among other things, developments are underway in new promising areas. The use of sweet proteins opens up interesting opportunities for the food industry. For example, brazzein, which is several thousand times sweeter than sucrose and does not increase blood glucose levels. It is currently being studied all over the world. And the Russian company EFKO has already developed a technology for its production and even launched a pilot production of sweets in which sugar is replaced with sweet proteins.
— What other promising biotech projects are currently being implemented?
— Work is underway in almost all critical areas. A large-scale production of feed enzymes in Belgorod is being prepared for launch. A new starter starter factory will be opened in the Yaroslavl Region. Plants for the production of modified starches are also under construction in Rostov, ascorbic acid in Kaluga, citric acid in Tula and Voronezh.
The implementation of these and other projects will make it possible in the coming years to meet most of Russia's needs and significantly reduce dependence on imports.
— Agriculture is leading in terms of labor productivity growth. What technologies can improve the efficiency of agribusiness, and what awaits us in the next five to ten years?
— Indeed, the picture in our industry has changed a lot in recent years. Due to the introduction of new technologies, our share of manual labor has significantly decreased. Many routine processes, both in crop production and animal husbandry, are automated today. Robots, drones, and artificial intelligence are all widely used in agriculture and help increase production efficiency and reduce costs.
Domestic car driving systems are developing. Currently, over 12,000 tractors and almost 3,000 combine harvesters with autopilot elements are used in our country. For example, Kirovets tractors can be moved using satellite navigation and machine vision. Due to this, the almost 20-ton machine drives through the field with jewel-like precision, which allows for increased productivity and reduced crop losses.
In addition, such systems can immediately send the telemetry data necessary for effective control of the production process. This year, Tuman, a manufacturer of self-propelled sprayers, launched a cloud platform that collects and analyzes information necessary for agronomists on fertilization and plant protection in each field area.
As for food production, robots are actively used here. For example, a sausage factory has been built in Kashira, where the entire technological process is robotic — from the acceptance of raw materials to the shipment of finished products.
So, coming back to your question: of course, humanoid robots on farms, as, for example, in the TV series "Cyber Village", will most likely not be in the near future. Although many of the things that people think are fantastic are actually already being used in agriculture today. And in 10 years it will be even more ambitious and impressive.
"Russian wines have started winning prestigious international competitions"
— How do you assess the achievements of Russian winemakers? And how has the situation in the industry and in the domestic market changed after many imported manufacturers left it?
— 10 years ago, wine production in Russia was mainly carried out by large factories that produced mass-market products. Today, the situation has changed dramatically. Currently, there are about 300 wineries in our country in all possible formats: from family-owned with authentic author's wines to large companies with nationwide production and export supplies. Russian wines began to win prestigious international competitions. All this is the result of large-scale changes that have taken place in the industry in just a few years after the adoption of the law on viticulture and winemaking.
The government has begun to pursue a targeted policy to protect and support our winemakers. For example, last year we increased the duty on imported wine from unfriendly countries. The excise tax was also raised, but at the same time, domestic producers were given the opportunity to receive a tax deduction for used grapes.
— What other measures should be taken to further develop the domestic wine industry?
— First of all, it is necessary to increase the share of domestic wine in retail and the HoReCa segment (hotel and restaurant business. — Editor's note). Since April 1, GOST for wine lists has been in effect in our country. The standard sets out recommendations for restaurants, cafes, and bars for compiling wine lists, including placing Russian wine at the top of the list and accompanying it with special notes. In addition, GOST contains a recommendation for a 20 percent share of domestic products in the map.
It is also important to address the issues of additional education for service sector employees. Many bartenders, cavists, sommeliers do not always keep up with the rapid development of the industry and do not yet know domestic wines so well. Accordingly, we will work with industry associations to develop special professional development programs. For example, in the fall we will launch one on the basis of the Russian Academy of Personnel Management of the Agroindustrial Complex.
— It's no secret that Russians who are used to imported wine may still prefer it. How do you manage to instill interest in domestic products?
— I must say that the quality of many Russian wines today is not inferior to well-known foreign brands. Consumers have already tried our products, and their sales are growing every year.
But it is especially important that our wine consumption culture is reviving, which today can be considered as a significant part of our gastronomic traditions. Customers are becoming more familiar with the history, geography of origin, subtleties of tastings and combinations of dishes with wine. Wine festivals and fairs are already becoming traditional cultural events in the regions, attracting tourists and locals alike.
Approaches to the display of our products in retail chains are changing, and online storefronts of Russian wines, including copyrighted ones, are becoming increasingly popular. There is also a growing demand for educational events: master classes, sommelier courses, thematic excursions to wineries.
Another important trend is the development of enotourism. This type of recreation allows you not only to get unforgettable emotions, but also to get acquainted with the history, traditions and culture of winemaking. Last year, 800 thousand people visited Russian wineries, and this year more than 900 thousand are expected. The Krasnodar and Stavropol Territories, the Republics of Crimea and Dagestan, and the Rostov Region are among the most popular routes. Wineries have become the sights of the regions, new points of attraction for tourists.
As you know, the president instructed to resolve the land issue with the construction of tourist facilities by the end of the year, which will give an additional impetus to the industry through the development of the hospitality industry.
— Are there plans to increase the area for vineyards?
— The area of our grape plantations is growing annually and today exceeds 110 thousand hectares. The most noticeable increase was shown by our traditional "wine" regions — the Crimea and the Krasnodar Territory.
We have received more than half of the new land in the last three years, which is due to the increase in state support for the planting of vineyards. Since 2022, we have been implementing a separate federal project aimed at these goals. This year, financing for the care of vineyards and the laying of new ones has been increased by almost a quarter, to 4.3 billion rubles.
In general, 18 wine-growing zones have been created in our country with their own characteristics that allow us to produce wines with a wide variety of characteristics for every taste.
At the same time, you need to understand that Russia is more of a northern country. We are limited in lands suitable for growing grapes. Nevertheless, viticulture is actively developing in many territories — not only in the South and North Caucasus, but, for example, in Kaluga, Samara regions and other atypical regions. They plan to grow grapes on an industrial scale in Mordovia.
"Russia will reach 100% self-sufficiency in apples by 2028"
— Which crops have suffered the most this year due to abnormal frosts? What did you have to sow in the end? What is the forecast for the harvest?
— This year, the effects of recurrent frosts were not so large-scale. In the whole country, losses amounted to about 178 thousand hectares, which is six times less than last year. At the moment, everything that could have been sown based on agronomic deadlines has been replanted.
We are now more seriously concerned about the state of grain crops in certain regions of the south of the country, which have suffered from a lack of moisture. We will closely monitor this situation, including so that farmers who have insured their crops receive the necessary compensation.
In general, despite certain difficulties, we can expect an increase in gross receipts this year. In particular, we expect a grain harvest of 135 million tons, including 90 million tons of wheat. The preliminary forecast for oilseeds is also higher than last year's level — 32.5 million tons. This will allow us to fully meet our domestic needs and increase our export potential.
— As for fruit and berry crops, how much have they suffered?
— Due to the spring frosts, we potentially will not reach about 100 thousand tons. Nevertheless, due to the high pace of gardening and intensification of production, we plan to receive about 2.1 million tons of fruit and berry products. This includes about 2 million tons of apples, which is 200 thousand tons more than last year's harvest.
Last year, the president instructed us to accelerate our self-sufficiency in apples. Since this year, we have significantly increased our support for gardening — up to 7.5 billion rubles annually. We expect that this will allow us to meet our own apple needs by 100% as early as 2028.
In general, we need to understand that weather disasters will continue to affect our industry, and we cannot escape them. In this regard, the most effective risk protection tool for farmers is agricultural insurance with state support, which gives confidence in the preservation and development of business. This year, a record 7 billion rubles have been allocated to finance this instrument from budgets of all levels. We expect that this will increase the share of insured acreage from 19.5% to 21%. We will continue to develop this support measure.
"Business should not just provide production volumes — it should be profitable"
— According to Rosstat, according to the results of last year, the Russian Federation continued to reduce the acreage of a number of crops. Wheat crops decreased by 4.2%, barley — by 12.9%, rye — by 19.8%, potatoes — by 4.2%. What is the reason for this and what is the situation this year?
— Due to traditions and climatic conditions, we are a grain-producing country. Our base crop is wheat. It is around it that most agricultural producers build crop rotation and form a fleet of necessary equipment. It makes no sense for farmers to change this culture.
At the same time, it is possible to dilute the crop rotation with other crops, based on the conjuncture of a particular season. And that's right. We understand that a business should not just produce volumes, it should be profitable. The manufacturer must earn money in order for a constant process of reinvestment to take place, so that in the next cycle they can invest again and receive even more products. Investments are the source of our development and the achievement of all the indicators that the president has set for us.
Therefore, conjunctural changes in the structure of acreage are a natural process that does not cause us concern, as long as production volumes allow us to meet our own needs. Let me remind you that we need about 45-47 million tons of wheat for domestic consumption. We grow much more and are the world leader in exporting this crop.
I have no doubt that it will continue to be so. The market is set up for this anyway.
— How do you assess the situation with potato prices, which have risen sharply this year? Is it planned to extend the import quota for duty-free import of vegetables if prices do not start to decrease in July?
— Prices for vegetable products largely depend on the season and the volume of production in a given year. For example, in 2023 we had a record potato harvest. This effectively brought down prices, and manufacturers were forced to sell their products below cost. Against the background of this low base, we really see a serious increase in value.
At the same time, last year's harvest was actually quite good: at the average level over the past five years. Potatoes were on the shelves all season, there was no shortage, and prices for them only caught up with the level of accumulated inflation over 10 years in March. I believe that the excessive hype around this topic also played a role in this.
In order to additionally ensure the availability of potatoes in the off-season, we initiated the zeroing of import duties to 300 thousand tons. This allowed us to completely cover our needs before harvesting the new crop. Now farmers in the south of the country have already started harvesting, and the price has gradually gone down. Since July, taking into account the growth of the area under this crop, we expect a more active decline.
As for the extension of the duty-free import quota. If the weather allows us to harvest as planned, we will consider suspending the benefits in order to support our producers.
— Does the Ministry of Agriculture have enough levers to control prices today? How do you feel about the introduction of state regulation of prices for essential goods?
— There are levers. We have a well-regulated industry. Among other things, customs and tariff regulation measures are working effectively, which we are trying to take proactively and proactively. At the same time, we have a negative attitude towards the introduction of state price regulation, because it could potentially lead to a shortage of certain products.
It is much more effective to provide targeted support to those industries that are currently experiencing difficulties in order to avoid price distortions.
— The Ministry of Agriculture did not support the introduction of a mandatory exchange rate for agricultural producers. Why, because this measure is aimed at lowering prices?
— In principle, we are against mandatory requirements, we want to create incentives for professional market participants to trade on the stock exchange. This is, for example, a priority for rail transportation or the fixing of export duties. We are discussing this possibility with colleagues from the Central Bank and the Ministry of Economic Development. A number of major market participants are also involved in the development of these mechanisms.
In addition, we are not sure that the introduction of a mandatory exchange rate will help reduce the price. You can look at previous seasons when the harvest was high and the price was low and without stock trading. Last year, when production decreased slightly relative to the previous two years, the price increased. So the market is functioning normally anyway.
It is also important to avoid putting unnecessary strain on the business. First of all, of course, for small and medium-sized businesses. Although the current version of the draft law does not affect this category, it is also unfair to introduce mandatory standards only for large manufacturers.
Another goal of this initiative is to create price indexes. But at the moment, there is already a mechanism that allows you to monitor the market — these are over-the-counter price indices. We see that they are quite comparable.
The development of exchange—traded instruments in foreign markets is another matter. And here we see such a perspective in relation to the BRICS exchange, which is being created on the initiative of our president. Now, under the leadership of Deputy Prime Minister Dmitry Patrushev, together with the Ministry of Economic Development and the Central Bank, we are developing this concept. Exchange trading in commodities, starting with grain, will make it possible to form a secondary market for financial instruments and hedge trade transactions. At the same time, we will receive independent price indicators and a more objective assessment of the value of agricultural products on the world market.
"Grain exports are planned at the level of 53 million tons"
— Following the results of the 2023/24 season, Russia set a record for grain exports. More than 71 million tons were delivered. To a large extent, it is provided by the record harvests of the previous two years. Last year, the grain harvest was lower. Will we be able to maintain our leading position in wheat exports by the end of the current season?
— Yes, we expect Russia to retain its first place in the world in wheat exports both this and next season. This is our strategic objective. As I have already said, wheat will remain our base crop and export commodity for the foreseeable future. By the end of the current season, its shipments abroad will amount to about 44 million tons, which is higher than the export capabilities of the European Union, Australia and our other competitors. We plan to export all grain at the level of about 53 million tons, which is the volume that we can export this season without compromising food security. We forecast a similar volume by the end of 2025.
If we talk about plans for the upcoming season, based on current crop estimates, we expect to supply 53-55 million tons of grain to foreign markets, of which about 45 million tons are wheat.
As for the overall dynamics of agricultural exports, relative to the record figures of last year, the pace is now slightly lower. But this is a temporary decline due to the strong ruble. We don't need exports just for the sake of performance, unless they are humanitarian supplies. A business must earn money. Therefore, we are waiting for the market to improve and, if the economic situation changes, we will increase supplies. We have the necessary volume of products for this.
— What else can we offer the world besides grain?
— In recent years, we have been actively increasing the supply of processed products. In particular, the fat and oil group shows good rates, for example, rapeseed oil and various sauces.
Also, our strategic objective is to increase the supply of fish products with high added value. This year, exports of the fisheries sector increased by 19% due to more advanced processing products.
In addition, the export of livestock products shows good dynamics. You will remember that last year we started shipping pork to China. So, this year, by the same period, they have already increased fourfold.
The popularity of our confectionery products is also growing. For example, in China and other Asian countries, sweets of classic domestic brands, familiar to all of us since childhood, such as Alyonka and Ladybug, are in great demand. They are a kind of sweet ambassadors of Russia.
At the same time, we do not stop there. Together with the Rosselkhoznadzor, we continue to work to expand the access of our products to new markets. This year alone, eight countries have opened the opportunity for us to export 25 types of products. For example, the right to supply milk and beef to Malaysia was recently obtained. The first enterprises are currently being certified.
A separate issue is the promotion of small and medium—sized business products. Here we actually take the manufacturer by the hand, help establish contacts with foreign buyers and get on the shelf in foreign retail chains.
Food trade is the basic, but not the only, area of our international cooperation. Due to the technologies that we already have, Russia can offer its partners a comprehensive approach to ensuring their food security. In particular, we plan to become a net exporter of seeds in the next six years.
The export of education is also a promising area. Currently, more than 11,000 citizens of other countries are already studying at our agricultural universities. By 2030, we intend to triple the number of international students, including from the SCO and BRICS countries, Africa and the Middle East.
Of course, we will continue to increase our contribution to global food security. Let me remind you that this goal is laid down in the May presidential decree, and from this year in the Food Security Doctrine.
At the same time, our main priority, of course, is to ensure the domestic market. For us, this is a dogma.
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