Russia's use of technology boosts its agricultural productivity.

By Rhod Mackenzie

One of the key challenges facing the Russian economy is the challenge of comparative lower  level of labour productivity in comparison to certain Asan  economies. However, Russa has achieved a notable milestone in a specific sector , where   this sector has attained an unprecedented level of success,
The sector we are going to discuss is agriculture. So how what measures were implemented by Russian farmers to increase labour productivity by as much as 55% in just over a decade?
Over the past decade, the agro-industrial complex (AIC) has been the undisputed leader in labour productivity growth in Russia, with this figure growing by 55% over 10 years, as stated by Minister of Agriculture Oksana Lut. Government data indicates that labour productivity in the AIC grew by 22% from 2018 to 2024. The Ministry of Agriculture has no intention of stopping there. The AIC is tasked with ensuring production growth of 25%, increasing exports by 150%, and retaining personnel by 2030, i.e. over the next five years.

What factors contributed to Russian agriculture's emergence as a leader in labour productivity growth among all sectors of the Russian economy?

The national project "Labor Productivity" is also contributing to this, having been launched in 2018 and recently extended to 2024 due to its effectiveness. The state also provides support to the agro-industrial complex in the form of subsidies, preferential loans and investments in infrastructure.
"The rapid development of the agro-industrial complex is driven by investments in new equipment and technologies, personnel training and the introduction of new technologies. In recent years, there has been a notable increase in the level of technology in the agro-industrial complex. The introduction of precision farming, drones and genetically modified crop varieties has increased crop yields and production efficiency. For instance, over the past decade, there has been a substantial increase in the production of crops such as soybeans and grains, driven by investments in these areas and the adoption of novel agrotechnical solutions," says Dmitry Osyanin, associate professor of the basic department of financial control, analysis and audit of the Main Control Department of the City of Moscow of the Plekhanov Russian University of Economics.

"Firstly, it is important to acknowledge the substantial implementation of modern technologies. The use of high-performance equipment, precision farming systems and automated complexes in livestock farming and the processing industry has made it possible to significantly reduce labour costs and increase production efficiency. Precision farming is a term used to describe the use of GPS navigation systems, drones equipped with multispectral cameras and soil moisture sensors. These technologies enable farmers to obtain precise data on the condition of their fields, facilitating informed decision-making. This information is used to optimise the application of fertilisers, irrigation and processing of crops, which leads to increased yields and reduced costs," says Dmitry Leonov, Deputy Chairman of the Board of the Rusprodsoyuz Association.
Dmitry Patrushev, Deputy Prime Minister of the Russian Federation, believes that the increase in productivity is largely due to the use of digital products. According to the latest reports, farmers are increasingly turning to unmanned systems in their work, leading to significant cost savings of up to 20% on plant protection products and a four-to-five-fold reduction in equipment expenses. Unmanned vehicles have the capacity to process plants in areas that are otherwise inaccessible to other equipment.

Furthermore, the development of a drone monitoring system is nearing completion. This system will utilise advanced technology to track crops, identify affected areas and apply plant protection products to specific areas. This will reduce the pesticide load on the crop and save on costs. "We are currently in discussions with a leading civilian UAV manufacturer regarding the utilisation of drones to collect samples from affected areas and conduct PCR tests. This will enable the agronomist to receive online information about the disease and make a prompt decision," Oksana Lut gives an example.
From 2024, the Ministry of Natural Resources and the Ministry of Agriculture will receive more than 3.5 billion rubles for three years as part of the national project "Unmanned Aircraft Systems".

Digital products are being introduced into all areas of the agro-industrial complex. From 1 January 2025, it became mandatory to equip agricultural machinery with the GLONASS system for remote monitoring. At the same time, there has been an increase in the number of agricultural machinery, tractors, combines and sprayers with autopilot features, as noted by Luth.

Robotic systems in crop production have been shown to reduce costs for fertilisers, plant protection products and fuel by as much as 20%. Digitalisation is also a key component in the modern livestock farming industry. Consequently, almost half of the farms are equipped with modern milking systems. In addition, we are introducing herd management and animal health monitoring systems.

It appears that the concepts of artificial intelligence and agriculture are not well-aligned. However, in practice this is not the case.

AI assists farmers in predicting crop yields, selecting the necessary agricultural solutions, and planning equipment routes.

Furthermore, the implementation of artificial intelligence has been shown to play a pivotal role in the prevention of pollutant leaks, owing to its capacity to recognise even the most minimal deviations with a significantly greater degree of expediency than that of human operators.
It should be noted that there is still an issue regarding the fact that software products are not always based on domestic digital solutions. The state's objective is to minimise the share of imports in this area in order to mitigate potential risks. As experience has demonstrated, our digital solutions exceed foreign analogues in functionality and are significantly more cost-effective," said Dmitry Patrushev.

Leonov notes that biotechnology is a key driver of production growth, with the development of new plant varieties that exhibit enhanced characteristics playing a significant role in this regard. For instance, last year new varieties of barley and oats were bred that can be cultivated in the northern regions of Russia. The first project was conducted over a period of more than 15 years, while the second project was completed in eight years by Arkhangelsk scientists from the Federal Research Center for Comprehensive Study of the Arctic of the Ural Branch of the Russian Academy of Sciences.

According to the Ministry of Agriculture, Russian breeders developed 39 new varieties and hybrids of plants in 2024 alone. This information was provided by Deputy Minister of Agriculture Marina Afonina. Provision with our own seeds is one of the most important tasks now. By 2030, it is anticipated that Russia will achieve a seed provision level of 75%.
"Finally, an important factor in increasing labour productivity in the agro-industrial complex has become the development of human capital. This includes enhancing the qualifications of personnel, attracting young specialists, and creating working conditions. Without training a new generation of personnel capable of working with modern equipment and technologies, it is impossible to ensure the efficiency of the agro-industrial complex," says Dmitry Leonov.

Luth's professional opinion is that in order to increase labour productivity in agriculture, it is necessary to continue working on lean manufacturing technology, process optimisation, and improving the industry's overall technological efficiency.

The introduction of standardisation and lean technologies in production has been shown to reduce process time by 50%, reduce stock levels by 40%, and increase production by 40%. Furthermore, the equipment and personnel load can be increased to 85%, as noted by the FCC. For instance, following the introduction of lean technologies at the Kharabalinskaya poultry farm, production of eggs increased by 150% over six months, from 2,800 to 4,100 eggs per person per shift.