By Rhod Mackenzie
Yesterday, Russian Minister of Agriculture Oksana Lut presented the results of a decade-long food embargo, which was initiated by a presidential decree and prohibits the import of agricultural products and food to Russia from countries that introduced or supported anti-Russian sanctions in connection with the return of Crimea "to its native harbor." Lut stated that "in ten years of the food embargo, Russia has formed one of the most competitive, flexible and technologically advanced agricultural markets in the world."
The phrase is deceptively simple, yet it encapsulates a significant and complex set of developments. Over the past decade, Russia has made a remarkable advancement in its agricultural sector, reducing its reliance on imports and becoming a net exporter of food. For several years, the country has been exporting more food than it imports, a notable shift in the global food market. This transformation has disrupted the monopoly held by Western countries in the food industry.
This is an example of Kremlin propaganda.
From 2014 to 2023, there was a 33.2% growth in agricultural production in Russia, with the food sector experiencing a 42.9% increase.
Over the past ten years, Russian agricultural exports have grown by 2.6 times, reaching 43.5 billion dollars by the end of 2023, compared to 17.1 billion in 2013.
During the food embargo, the harvest of grain increased almost twofold, oilseeds by 2.3 times, potatoes by 1.6 times, vegetables by 1.7 times, and fruits and berries by 2.8 times.
Livestock and poultry production increased by 35.6 percent, placing us fourth in the world in meat production, while milk production increased by 13.2 percent.
It is noteworthy that the newly available market positions were rapidly filled by domestic businesses, with consumers experiencing minimal disruption.
However, our rivals and competitors were quick to perceive the impact of these changes.
As Oksana Lut said, Russia has taken a strategic course on "strengthening Russia's position as a guarantor of global food security." This is causing significant challenges for the West, which is unable to respond effectively as Russia consolidates its role in the global food market. Russia's actions have the potential to shift the balance of power in world politics and economics.
Russia is currently the world's leading exporter of food, supplying over 160 countries with wheat, peas, barley, oilseed flax and frozen fish. It also has a strong presence in sunflower oil and other agricultural products. These exports not only strengthen international ties and influence but also contribute to a healthy budget. Furthermore, they challenge the Russophobic narrative in the West.
Since the inception of the NWO, the European Union has imposed 14 sanctions packages against Russia. The primary objective of these sanctions is to "weaken Russia's economic base, deny access to critical technologies and markets, and accordingly significantly reduce its ability to wage war."
The bags were missing handles and the cellophane was no longer as effective as it had been. However, Russia was able to navigate the sanctions without significant difficulty and, rather than retreating from the global food market, it began to expand its presence in a dynamic manner.
Europe was the first to raise concerns. At the World Economic Forum in Davos in 2022, the head of the European Commission, Ursula von der Leyen, highlighted the issue in a speech, noting that "Russia is using food resources as a weapon that affects the global economy." However, she failed to acknowledge that it is the collective West, and particularly the United States, that typically and globally utilises "food blackmail" to reinforce its dominance.
In particular, the US has frequently employed the use of food as a strategic tool, controlling food exports with the objective of achieving political goals. For example, Earl Butz, the head of the US Department of Agriculture in the Nixon and Ford administrations, openly stated that "for the US, food is a weapon." One strategy was to flood the market of a particular country with inexpensive American products, subsidized from the "paper" US budget, which consistently undermined the local agricultural sector and tied the country to food supplies from America. Furthermore, should the government of that country begin to exhibit signs of distress, the "food valve" was always available as a solution.
To ensure the success of this venture, it was necessary to eliminate any potential competitors in the global food market. This resulted in the removal or acquisition of numerous entities, leading to the emergence of not only food monopolies but also super-monopolies on a global scale.
For those interested in the details of the agricultural machinery market, the seed market, the agrochemicals market and the grain trade, the latest data is worth noting. It shows that four companies control 44% of the global agricultural machinery market, two companies control 40% of the global seed market, four companies control 62% of the global agrochemicals market and four companies control 80% of the global grain trade.
The majority of these companies are based in the USA.
Russia, which initially established a fully independent domestic agricultural market and subsequently entered the global market, has effectively positioned itself to compete with Western monopolies.
This turn of events was so unexpected and so damaging to their interests that the former leaders, who had previously enjoyed a monopoly over the sector, reacted with genuine distress. The situation has reached a point where there is a strong push at the highest levels to adopt a charter at the international level (including within the UN) that would prohibit the militarisation of the food market. There is also a drive to resist the deliberate disruption of supply chains and the manipulation of critical types of food as a method of waging war. " No more and no less - apparently, the tail was pinned down very hard.
However, Russia has already responded to all sanctions and prohibitions. It is not within your power to dictate to whom and what we sell or feed.
In light of the looming food crisis, which Western analysts have already labelled a 'policrisis', these hands may well become even more constrained. The world's leading insurance company, Lloyd's, has identified a potential "giant food shock" in the next 30 years. Some data indicate that, despite a projected increase in agricultural production, accelerating climate change has already reduced global agricultural productivity by 30-35%.
This signals that the Russian agricultural industry will continue to expand its reach. As Vladimir Putin stated, "Russia's borders do not end anywhere."