February 24 2014, 11:30 Source: APK-Inform Views: 3284

Russia may waste the moment to increase grain production volumes – National union of grain producers

The prospects for provision of the global food security cause serious concerns among experts, because to date food production lags behind the rate of growth of the Earth's population, declared Pavel Skurikhin, President of the National union of grain producers of Russia, on February 21.

He stressed that the sharp rise of grain prices provoked the crisis in several countries of the Middle East and North Africa, and if the most densely populated countries face the food deficit, the global political consequences will be unpredictable.

According to the President of the Union, in the countries which can produce more grain volumes than it is consumed on their domestic markets, the agricultural business usually can not survive without government support in one form or another. In fact, almost every year the planted areas of agricultural crops in the world are reduced. The global climatic changes cause regular droughts, reducing of the yield indices. The sum of investments for researches in the field of agro-industrial complex continues reducing, said P.Skurikhin.

At the same time, he believes that in the medium and long-term prospect investments in agriculture should bring a good profit. But when investors are looking at the long-term prospect, they are afraid of the present situation in the agriculture, and such situation is typical for Russia.

Instead of the present annual volumes of 80-90 mln tonnes of grains, Russia may produce at least 130 mln tonnes, and prove the exports at the level of 60 mln tonnes. But it requires a modernization of the industry, and increasing of the agricultural land turnover. And the investment volume is not enough for such aims.

The moment for the planned, deliberate increase of grain production may be wasted. When the private business shows indecision and excessive caution in considering investments to the agriculture, it is necessary to encourage the governmental and intergovernmental support measures, said P.Skurikhin.


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