World Grain - May 2023 - 25

risks of helping Russia circumvent sanctions.
Still, as the authors of the study suggest, in addition
to Turkey, Russia could try to source necessary goods
in Iran and China.
Problems with technology
In 2023, Russia's grain harvest could drop to 120 million
tonnes, or even lower, from 153 million tonnes the
previous year, owing to problems with the technological
base in the industry, Arkady Zlochevsky, president
of the Russian Grain Union, said.
" These (problems) mean that due to lack of money,
we will not be able to carry out the whole range of
technological work, " he said. " In this case, weather
risks come into play to the fullest. And as soon as the
weather gives some unfavorable factor, the losses from
it will be much greater than if in case of the technological
sowing. "
Facing financial issues, Russian farmers must cut
the use of fertilizers and plant protection agents, use
cheaper seeds, and look for other cost-saving solutions.
This problem primarily concerns independent farmers,
which manufacture most of the country's grain.
" In agricultural holdings, which have a large concentration
of resources, we do not yet see a drop in
technological effectiveness, " Zlochevsky said. " But all
agricultural holdings produce 20% of grain (in Russia)
in total. "
He added that this situation could worsen the outlook
for the Russian grain industry in the coming years.
" With the loss of technological effectiveness, the
decline (in output) is gradual, " Zlochevsky said. " The
accumulated effect of fertility is working for the time
being, and the earth gives out more than they (farmers)
put in, but this is the sucking of juices. "
Export duty fallout
However, Russian grain farmers do not expect their
financial health to recover this year, since domestic
prices remain extremely low while the floating export
duty eats a lion's share of profit from export operations.
Zlochevsky warned that grain prices in Russian
provinces have fallen below the break-even point. He
disclosed that, for example, in the Saratov region, the
wheat price dipped below 9,000 roubles ($125) per
tonne, while the sunflower seeds market saw a cataMANUFACTURING
EXCELLENCE
FROM AGI
AGI FRAME |
AGI PTM
EXPERIENCE
THE DIFFERENCE
aggrowth.com
World-Grain.com / World Grain / May 2023
25

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World Grain - May 2023

Table of Contents for the Digital Edition of World Grain - May 2023

World Grain - May 2023 - Intro
World Grain - May 2023 - 1
World Grain - May 2023 - 2
World Grain - May 2023 - 3
World Grain - May 2023 - 4
World Grain - May 2023 - 5
World Grain - May 2023 - 6
World Grain - May 2023 - 7
World Grain - May 2023 - 8
World Grain - May 2023 - 9
World Grain - May 2023 - 10
World Grain - May 2023 - 11
World Grain - May 2023 - 12
World Grain - May 2023 - 13
World Grain - May 2023 - 14
World Grain - May 2023 - 15
World Grain - May 2023 - 16
World Grain - May 2023 - 17
World Grain - May 2023 - 18
World Grain - May 2023 - 19
World Grain - May 2023 - 20
World Grain - May 2023 - 21
World Grain - May 2023 - 22
World Grain - May 2023 - 23
World Grain - May 2023 - 24
World Grain - May 2023 - 25
World Grain - May 2023 - 26
World Grain - May 2023 - 27
World Grain - May 2023 - 28
World Grain - May 2023 - 29
World Grain - May 2023 - 30
World Grain - May 2023 - 31
World Grain - May 2023 - 32
World Grain - May 2023 - 33
World Grain - May 2023 - 34
World Grain - May 2023 - 35
World Grain - May 2023 - 36
World Grain - May 2023 - 37
World Grain - May 2023 - 38
World Grain - May 2023 - 39
World Grain - May 2023 - 40
World Grain - May 2023 - 41
World Grain - May 2023 - 42
World Grain - May 2023 - 43
World Grain - May 2023 - 44
World Grain - May 2023 - 45
World Grain - May 2023 - 46
World Grain - May 2023 - 47
World Grain - May 2023 - 48
World Grain - May 2023 - 49
World Grain - May 2023 - 50
World Grain - May 2023 - 51
World Grain - May 2023 - 52
World Grain - May 2023 - 53
World Grain - May 2023 - 54
World Grain - May 2023 - 55
World Grain - May 2023 - 56
World Grain - May 2023 - 57
World Grain - May 2023 - 58
World Grain - May 2023 - 59
World Grain - May 2023 - 60
World Grain - May 2023 - 61
World Grain - May 2023 - 62
World Grain - May 2023 - 63
World Grain - May 2023 - 64
World Grain - May 2023 - 65
World Grain - May 2023 - 66
World Grain - May 2023 - 67
World Grain - May 2023 - 68
World Grain - May 2023 - 69
World Grain - May 2023 - 70
World Grain - May 2023 - 71
World Grain - May 2023 - 72
World Grain - May 2023 - 73
World Grain - May 2023 - 74
World Grain - May 2023 - 75
World Grain - May 2023 - 76
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