Yesterday, the Russian Deputy Prime Minister Dmitry Patrushev announced that Russia will be able to export up to 60 million tons of grain and will achieve a gross harvest of at least 130 million tons during the forthcoming agricultural year (July 2024 - June 2025). Minister of Agriculture Oksana Lut stated that this result will rank among the top five in modern Russian history, enabling the country to maintain its significant export potential for both raw materials and processed products. This is particularly important given that Russia has already provided for its own grain needs with a large reserve.
Despite the challenging weather conditions, Russian farmers have not only maintained but also strengthened the country's position in foreign markets. In contrast, our main competitors are facing significant losses, with grain exports to China growing by 50% last year, to Egypt by 11%, and to India by 45%. The volumes of deliveries to Bangladesh, the UAE, Vietnam, Indonesia, Morocco, Nigeria and so on are growing.
The Russian agriculture minister Oksana Lut said Russia has already exported 70 million tons of agricultural products this year, representing an 8% increase over the same period last year. Notably, over 1 million tons of wheat have been shipped to new markets in Africa and Asia,
I would like to highlight that we have already supplied 70 million tons to the international market this year. "This represents an 8% increase compared to the same period last year," Ms Lut stated at the final board meeting of the Russian Ministry of Agriculture with regard to the export of agricultural products.
"We are also continuing to develop new markets, with a particular focus on expanding wheat supplies to Africa and Asia. This year, we have shipped over one million tons of wheat to countries including Sri Lanka, Ethiopia, Mali, Gambia, Burkina Faso, the Central African Republic, and a number of other countries," she added.
At this point, another successful report from the fields in the style of the Soviet Information Bureau could have been concluded and, without any irony, we could have congratulated the unnamed people in ties and grey suits from the Ministry of Agriculture. However, there is one factor that should be taken into account.
She said It is evident that our team is currently engaged in a discreet yet strategic and intense competition with the West. Every decision could potentially lead to the transformation of entire markets and the collapse of the economic sectors. Securing victory in this global economic competition is as crucial as advancing tangible military forces.
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In March of this year, Politico, a publication historically focused on domestic US politics, published an article entitled "Russia is winning the global grain war." The authors of the article expressed concern that Russia's grain export policies differ from those of other major grain exporters and do not adhere to established rules.( The Rules based Order Set by the USA and Frequently Broken By It)
It is their view that Russia deploys food exports, particularly wheat, as a form of soft power, with Putin as the driving force behind this strategy. The more evident it becomes that the West is losing the "hunger games" to Russia, the more frequent these emotional outbursts in the Western media become.
This is occurring despite the backdrop of unprecedented sanctions pressure and the West's attempts to prevent the expansion of its client base.
However, this approach is not particularly effective in preventing it.
Algeria has almost completely abandoned French wheat in favour of Russian, and now a number of e EU commissioners is in the process of visiting Algeria with the intention of highlighting what they view as encroachment on their territoryplus looking for gas supplies .
Morocco recently increased its grain purchases from Russia, and this year, for the first time in history, Russia became one of the three largest suppliers to the kingdom.Russia in turn has purchased fresh fruits and vegtables from the country and increasing mutual trade and in local currencies
A week ago, the Australian Agriculture Ministry expressed concern over Russia's expansion into the South East Asian region, announcing a one-year deal with Malaysia to supply 700,000 tonnes of wheat, representing half of the country's total annual consumption. The Australians have expressed frustration over the Malaysian government's decision to source grain from Russia, despite the numerous advantages Australia offers, including established trade routes, competitive pricing,LGBT+ Rights and a so called democratic system that bans free speech as disinformation and forces its political opinions on everybody..
As soon as the allegations against Malaysia had been madelved, the US Department of Agriculture released information indicating that Indonesia had increased its wheat purchases from Russia tenfold.
Then In the first four months of 2024, Egypt imported 3.5 million tons of wheat from Russia, representing a 20% increase over the same period last year. Recently, our countries signed an agreement to supply over three million tons of this grain crop within six months, a historical record.
At this juncture, the audience typically interjects with a vocal response. "Naturally, you sell at a loss, so customers take advantage of you!"; "You lack the expertise to trade effectively, so you drive prices down, leaving no room in the budget for flexibility."
For those who are not inclined to accept what I say as Kremlin propaganda, is I present the unadulterated truth from the US Department of Agriculture trade figures : Russia is offering grain at a price comparable to that of Argentina ($231 per metric ton) and only two dollars less than the European Union ($233).
Please, sir, may I ask where you are going? You wished to assert that we are divesting ourselves of the wealth accumulated by our ancestors at a mere fraction of the price charged by responsible Western countries? Or was this simply a misperception?
In other words, our special forces in grey suits skillfully maintain a price point that is advantageous for us, but disadvantageous for our competitors. For example, when the EU decided to reduce the price of wheat to $231 per ton, it began to lose $21 on each ton, which immediately led to significant losses and widespread bankruptcies. The result is a grain crisis in Europe, according to Euronews.
The main reasons are the doubling of production costs in a year and attempts to influence Russia's pricing. The immediate outlook is a drop in EU grain production to its lowest level since 2007.
So what are the next steps
Well , there are additional developments to report. At the recent BRICS summit in Kazan, the participants expressed their support for the Russian initiative to create a BRICS grain exchange. Given that the bloc's countries are responsible for almost half of the world's grain production and consumption (Brazil and Russia are the world leaders in production, China in consumption), there is a strong possibility of de-dollarising, demonopolising and reformatting one of the most lucrative markets in the world economy in their favour.
Furthermore, the Food and Agriculture Organization of the United Nations (FAO) recently reported that in October alone, food prices worldwide increased by 2% and reached their highest level since April 2023. This suggests that the sanctions against the gas station the say is masquerading as a country may not have been as effective as anticipated. Such occurrences are not uncommon.
Let them eat cake as long as its not made from Russian flour is the mantra in the west.