World Grain - September 2021 - 42

Russia
SEEKS TO EXPAND
DEEP PROCESSING
OF GRAIN
by Vladislav Vorotnikov
T
An aerial view
of industrial
elevators and
dryers in Russia.
he Russian government encourages grain companies
to develop deep processing to begin exporting
products with higher added value and generate
more profit from overseas sales. So far, those efforts
have been in vain, but things may change in the future.
By 2025, Russia is likely to reach sustainable production
of 145 million tonnes of grain per year, said Alexander
Korbut, vice president of the Russian Grain Union. The
domestic demand is projected to grow at a slow pace, so
more Russian grain will land in foreign markets. In this
context, the deep processing industry is needed to create
a new anchor buyer of grain in Russia and mitigate price
fluctuations on the global market, Korbut said.
However, there are more important reasons for
Russia to develop a deep processing niche than to
slightly increase domestic demand.
" Deep processing technologies are important to develop
bio-economic products, the (global) size of which
is estimated at $8 trillion, " said Alexander Chulok, director
of the Scientific and Research Forecast Center
of the Russian Higher School of Economy, adding that
Russia definitely wants a piece of this pie.
" It will be decided in the coming years whether Russia
will be able to emerge in this market, " Chulok said.
In the early 2000s, when global oil prices skyrocketed,
Russia has made a critical mistake by not establishing
a sophisticated processing system, Chulok said.
This fact is reflected in numerous statements Western
politicians made during the last decade, like when US
Senator John McCain compared Russia to " a gas station, "
noting that revenue from crude oil exports accounted
for the lion's share of the Russian GDP.
" Grain is considered to be the new oil, " Chulok said,
stressing that it is paramount that the country does not
make the same mistake and neglect the processing industry
again.
By developing the grain processing industry, Russia
could manufacture a broad range of products, includCountry
sees opportunity
for high-demand products
that could be exported
42
September 2021 / World Grain / World-Grain.com
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World Grain - September 2021

Table of Contents for the Digital Edition of World Grain - September 2021

World Grain - September 2021 - Intro
World Grain - September 2021 - 1
World Grain - September 2021 - 2
World Grain - September 2021 - 3
World Grain - September 2021 - 4
World Grain - September 2021 - 5
World Grain - September 2021 - 6
World Grain - September 2021 - 7
World Grain - September 2021 - 8
World Grain - September 2021 - 9
World Grain - September 2021 - 10
World Grain - September 2021 - 11
World Grain - September 2021 - 12
World Grain - September 2021 - 13
World Grain - September 2021 - 14
World Grain - September 2021 - 15
World Grain - September 2021 - 16
World Grain - September 2021 - 17
World Grain - September 2021 - 18
World Grain - September 2021 - 19
World Grain - September 2021 - 20
World Grain - September 2021 - 21
World Grain - September 2021 - 22
World Grain - September 2021 - 23
World Grain - September 2021 - 24
World Grain - September 2021 - 25
World Grain - September 2021 - 26
World Grain - September 2021 - 27
World Grain - September 2021 - 28
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World Grain - September 2021 - 30
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World Grain - September 2021 - 38
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World Grain - September 2021 - 40
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World Grain - September 2021 - 42
World Grain - September 2021 - 43
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https://www.nxtbook.com/sosland/wg/2016_12_01
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https://www.nxtbook.com/sosland/wg/2016_08_01
https://www.nxtbook.com/sosland/wg/2016_07_01
https://www.nxtbook.com/sosland/wg/2016_06_01
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https://www.nxtbook.com/sosland/wg/2016_04_01
https://www.nxtbook.com/sosland/wg/2016_03_01
https://www.nxtbook.com/sosland/wg/2016_02_01
https://www.nxtbook.com/sosland/wg/2016_01_01
https://www.nxtbook.com/sosland/wg/2015_12_01
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http://digital.world-grain.com/sosland/wg/2015_09_01
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https://www.nxtbook.com/sosland/wg/2015_04_01
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https://www.nxtbook.com/sosland/wg/2011_07_01
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https://www.nxtbook.com/sosland/wg/2011_04_01
https://www.nxtbook.com/sosland/wg/2011_03_01
http://digital.world-grain.com/sosland/wg/2011_02_01
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