September 29, 2011

Russian grain producers need to reform marketing models

Russian grain producers have to come up with new marketing models based on self-organisation, designed to improve liquidity of grain production, and profitability of agricultural enterprises, stated Pavel Skurikhin, president of the National Union of Grain Producers.

While speaking at the international conference "Grain of Russia - 2011" in Rostov-on-Don, he said that to date the issue of cooperation between agricultural commodity producers for foundation of more efficient organisation of grain trading activity, including exports, became more than ever topical.

According to Skurikhin, each grain enterprise can independently engage in trading activity, but it is hampered by the absence of own infrastructure for sustainable trading, failure to form the required grain of parties for shipment, inexpediency of keeping of professional traders in the staff. At the expense of development of cooperation between grain producers, these problems can be solved.

He also added that the National Union of Grain Producers developed the programme for organization of direct deliveries of grains to final consumers in other countries, using the mechanism of cooperation. Its realisation will significantly improve the profitability of agricultural producers at grain selling operations and the level of grain production liquidity, and reduce dependence of agricultural producers on the domestic pricing environment.

Till date, the country also realises large-scale projects on modernisation of agriculture in general and grain production in particular, to improve the infrastructure and technical renovation, but the plans are rather long-playing, said Skurikhin. Besides, Russia needs to use more accessible variants.