May 3, 2021


Cherkizovo holds business dialogue on development of global food systems



Cherkizovo Group recently organised an independent business dialogue on "Ensuring Sustainability: The Contribution of Russian Business to the Development of Global Food Systems."


The event was conducted jointly with the Russian Union of Industrialists and Entrepreneurs (RSPP) in preparation for the UN Food Systems Summit.


The summit will be held in September in New York, the United States, and will be an important stage in working out common international approaches to ensuring the sustainable development of food markets and addressing related global challenges.


During the business dialogue held in Moscow, Russia, representatives of large agricultural companies, industry unions and leading experts in agriculture discussed the main challenges facing international and national food security, as well as possible solutions reflecting the interests of the Russian business community.


The sustainable functioning of agricultural markets and ensuring food security occupy an important place on the agenda of Russia's business community and are needed for steady development of the entire national economy, RSPP president Alexander Shokhin said in his opening remarks. He added that it is important to consider the sustainable development of food systems not only from the sectoral standpoint, but also as a cross-cutting topic related to various aspects of business and development of the Russian economy.


According to Cherkizovo, the potential of Russian agriculture is not fully utilised: the country's share of the global agricultural industry is about 2%, even though it is one of the top four countries by amount of arable land.


Dmitry Aveltsov, head of the Center of Agroanalytics, FGBU (Federal State Budgetary Institution), emphasised that Russia "has a huge amount of arable land, a reserve in terms of production volumes, a reserve at world prices favorable for agricultural products. There is a window of opportunity, which should be used."


Sergey Yushin, head of the executive committee of the National Meat Association, drew the experts' attention to the unresolved problem of global hunger. Currently, only a small part of the world's population receives a sufficient amount of food. Therefore, in the context of ensuring the sustainability of food systems, it is extremely important to address the problems of hunger and availability of food, said Yushin.


However, he noted that care should taken about large-scale national implementation of global initiatives aimed at changing the structure of food production and solving issues in related sectors, like counteracting climate change.


This point was supported by Sergey Lakhtyukhov, general director of the National Union of Poultry Farmers, who criticised the policy of leading international organisations to reduce consumption of animal protein. In his view, such approaches to the food supply will not solve the problem of food shortages, but, on the contrary, will significantly aggravate the risks to food security and sustainable development of agricultural production around the world, including in Russia. Therefore, it is necessary to form an agenda for Russia that would reflect the industry's own interests.


Dmitry Krasnov, interim head of the RF Federal Center for Agricultural Exports Development, talked about the contradictions between the global and Russian sustainability agendas. According to Krasnov, forming an international agenda that would meet the interests of Russian businesses requires not only taking an active part in the work of international organisations, but also ensuring the presence of Russian companies in the global food market, and maintaining and constantly increasing the competitiveness of the Russian agricutlural industry.


A wide range of other issues was discussed during the business dialogue: the impact of the coronavirus on international supply chains, ensuring food supplies in a situation of all-round spread of animal diseases and the need for Russia to participate in developing global product promotion standards.


Summarising the discussion, Andrey Terekhin, head of industry unions and government relations at Cherkizovo Trade House, noted that the goals of sustainable development are already being implemented in the Russian agricultural sector. However, the industry needs its profitability and productivity to evolve; this will help to strengthen its international position and increase its contribution to global food security, he said.


"The prospects for growth in Russia are greater than in other parts of the world, and this imposes a great responsibility on us. The export agenda is very important; in the competitive struggle, Russia has to overcome protectionism to enter new markets. The predominance of national interests has grown sharply in the context of the pandemic, which requires that these interests be adequately reflected in practical policy. Russia is ready to participate in the formation of global systems," said Terekhin.


- Cherkizovo