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Russia to produce 85 mln. tons of grain

Russia has the capacity of producing from 85 to 87 million tons of grain this year, Deputy Agriculture Minister Sergei Korolev said at a selector meeting in Moscow devoted to the development of animal husbandry and preparations for spring fieldwork in Russia.

This year’s winter grain harvest could weigh in at 42 million tons, Korolev said. Spring-crop yield is projected at 15 centners per hectare, and the gross spring-grain harvest can be anticipated at almost 45 tons.

“So, if weather conditions are favorable, the gross harvest could be 85-87 million tons, which is completely sufficient to satisfy domestic consumption and preserve the export potential,” Korolev said.

He said projections by Roshydromet, Russia’s hydrometeorology and environmental monitoring service, that probably not more than 1.6 million hectares of planted winter crop would be killed off were accurate.

Fierce summer heat and persistent drought allowed Russia to harvest only 60.9 million tons of grain last year.

According to the Agriculture Ministry, 15 465 hectares of winter grain has been sown. The land area planted contracted in virtually all farming areas, but the most significant decreases among the main grain-growing federal districts were in the Volga district (1.958 million hectares less), the Southern district (718 000 hectares less), and in the Central (231 000 hectares less) district.

In the run-up to over-wintering, 7.8 million hectares (50 percent of the farmland planted with winter grain) were in good condition, 6.1 million hectares (39 percent) were in satisfactory shape, and 1.6 million hectares (11 percent) were in unsatisfactory condition.

Winter crops are predicted to be killed off on over 1.6 million hectares, which would be consistent with the multi-year average. Thus, there should be about 14 million hectares of winter grain harvested.

The Agriculture Ministry projects that, overall, spring crops will be planted over 49.9 million hectares, which would represent a 5-percent increase in relation to 2010. Thirty million hectares will be allocated to grains and legumes.

All crop-planting this year will cover 77.1 million hectares, over 2 million hectares more than last year, but about the same as in 2009. This year’s spring grain planting will require 5.915 million tons of seed.

Growers now have on hand 95 percent of the seeds they will need for planting, according to the Ministry. Current figures from the various regions indicate that the average seed shortage nationwide is now 329 100 tons versus the 960 000-ton shortfall of November 2010. The Samara, Orenburg, Saratov, and Volgograd regions are experiencing the greatest shortage of seeds for spring-grain planting.

There are also issues with supplying agricultural producers with mineral fertilizers. These involve transporting fertilizers by rail. According to the Agriculture Ministry, roughly 90 percent of mineral-fertilizer forwarding was done by rolling stock belonging to OJSC Russian Railways (RZD). In the wake of the transfer of railcars to private operators in the context of RZD’s reforms last quarter, there is now a shortage of cars and rail gondolas for shipping mineral fertilizers. The 20-80 percent rise in charges for shipping by private operators – versus the rate for using RZD railcars – has only exacerbated the problem.

The cost of using rolling stock belonging to private operators has increased from 200-300 roubles per day to 1 300 roubles, making mineral fertilizer quite a bit more expensive.

There have been a series of meetings initiated by the Agriculture Ministry and involving representatives of the Transport Ministry, RZD, OJSC Freight One, and OJSC Freight Two aimed at addressing the problems of supplying growers with mineral fertilizers. These produced agreement that fertilizer producers would ship product to consumers in the regions at least 10 percent of domestic-market need using their own rolling stock and 10 percent by road. Freight One and Freight Two have pledged to provide railcars to move at least 50 percent of the fertilizer supplies that was need.

In order to deal on a timely basis with any material or technical issues involved in the conduct of seasonal fieldwork that arise, the Agriculture Ministry plans to set up an inter-agency commission. The ministry also has a ‘hot line’ devoted to spring planting and fieldwork.


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