December 22, 2010

Russia seen to come back on world grain market

Russian grains are likely to come back on the world grain market, stated Arkadiy Zlochevskiy, the President of the Russian Grain Union.

However, the price for Russian grains should certainly be lower compared with the competitors price, due to the risks presence, noted Zlochevskiy. The Administrative decisions unpredictability may become the risk in the case, and as consequence, contracts non-compliance.

While talking about the harvest results in 2010, Zlochevskiy noted that the final rate of grains harvesting totalled 62.5 million tonnes, but not 60.5 million tonnes, according to the official data of the regions. At the same time, agrarians hid about three million tonnes as losses, due to the droughts. Probably, it is due to the fact that Russian grain producers did not receive compensation of own losses in the full volume. The devoted funds by the Government covered only 20-25% of the damage, and even part of the funds did not reach agrarians, stated Zlochevskiy.

Besides, the Head of the Russian Grain Union noted that according to the analysis of the droughts in 2010 – 60-80% of the losses were not due to the weather condition, but due to the technological reasons.

If the agricultural technologies were observed by agrarians, the droughts could decrease grain production volumes by 4-7 million tonnes, but not by 37 million tonnes.

Zlochevskiy explained that gradual slowly increase of the manufacturability in grain production during 10 years with culmination in the season of 2007-2008 stopped in the conditions of the world economic crisis, which was during the grains season of 2008-2009.

Grain productions manufacturability decreased in Russia until the level of lower than before the crisis.