Alexander Tkachev: "We can become a leading agrarian power"

This year, Russia is preparing for another record amount of grain yelds - 128 million tons - and also expects to return the first place in the world in wheat exports. Prior to the main agro-industrial exhibition "Golden Autumn - 2017", Agriculture Minister Alexander Tkachev explained in an interview with "Izvestia" how much funds the state would allocate for financing of agricultural development programs from the new budget, commented on increase in sales of Russian agricultural products in the EAEU as well as the contentious issue on refusal from the import of meat and bone meal from the countries under sanctions since December, 1 and shared his idea on doubling the contribution of agricultural sector to GDP.
— This year, the level of grain production exceeded last year's figures. In addition, its exports have also increased. What does it depend on? What are the main reasons?
- Such an increase was driven by two factors. First of them is the unprecedented support of the state. Second one is the use of modern production technologies, providing the necessary amount of equipment and fertilizers. That's no any kind of miracles. We approached this gradually, with conscious. And not in one year. In the current season we plan to harvest 128 million tons of grain yelds and hope that Russia will regain its leadership in wheat exports.
— Can we say that the quality of Russian grain is improving?
- This is a moot point. On the one hand, as of September 27th of this year, the share of milling wheat in the total harvest reached 70%, slightly higher than on the same date of previous year. By the end of the year, we expect to harvest about 60 million tons of food wheat, or 75%. For easy understanding, in the United States, Canada and the European Union, the share of food wheat is 90%, but conditions there are also different, they do not need fodder, livestock are fed with corn and other fodder crops. Russia, due to weather conditions, has different traditions of farming and feeding of farm animals.
— The export of Russian food products to the EAEU countries has increased this year. What does it depend on?
— The countries of the Eurasian Economic Union are our strategic partners and neighbors, we have a lot in common and, of course, the increase in mutual trade with the EAEU countries is one of the main priorities for the development of exports. So far, the union member countries account for only 15% of the total exports of Russian agricultural products. According to the results of seven months, exports to the EAEU countries increased by 22% and reached $1.6 billion. In general, food exports are growing at the same pace totaling to $11.5 billion. If the growth rates stay unchanged, exports from the EAEU to Russia by the end of current year, will exceed $20 billion. It turns into mutually beneficial cooperation.
— How this can affect our domestic market? Will this lead to increase in prices?
— No, it will not, because our domestic market is already saturated in a number of products: sugar, grain, vegetable oil, pork, poultry meat. We are interested in dumping of "surpluses" that can put pressure on domestic market and thereby make agricultural production unprofitable for sectoral producers. This is very important, because there must be profitability, efficiency, an interest to invest in agriculture.
— Will subsidizing of the agricultural industry change in 2018? In which areas and how it can change?
- On behalf of the president and the government, the financing of the industry will remain the same as in the current year - at the level of 242 billion rubles. While there is no final decision concerning distribution between sectors, the draft budget is still under consideration in the State Duma. But it is already clear that such an amount will allow maintaining the volume of funding in maximum number of supported fields (for example, 39 billion rubles for single subsidy, 16 billion rubles for programs on development of rural areas, and 11 billion rubles for promotion of melioration), as well as to provide full servicing of preferential loans issued this year.
- Maybe preferential lending will undergo some certain change?
— This year, we have first introduced a preferential lending procedure to enable Russian agricultural producers to receive cheap and long-term money funds in order to develop their businesses. We don't want to slow down. The activity of agricultural producers remain quite high. Everyone wants to make re-equipment, modernize their enterprises, built new facilities or purchase new equipment.
- Today the share of the agroindustrial complex in GDP is 4%, and there are some prospects to increase it up to 5%. How to reach double increase of this share, raising it up to 10%? Does Russia really need it?
— Of course, it is needed. European countries, as well as the United States, produce much more products per capita. Well, how do they manage "surplus"? Of course, they sell it and earn good money from export activity. If our export volume is equal to $20 billion, in USA this indicator is represented by much more big numbers. The 4% share of the agro-industrial complex is a very good indicator, and it is impossible to bring it up to 10% in one year, this shell be realised step by step. So, over the past seven years, we have seen growth by one third. At the beginning of the 2000s, it seemed that agriculture would never get rid of the “black hole” label. But thanks to the efforts of Alexey V. Gordeev and Viktor Alekseevich Zubkov, in line with the support of the president and government, a national project, initiating revival of the industry, was launched. At that moment, the base for the agricultural development was provided, and now we are reaping the fruits grown of the seeds that these people sowed. As a result, over ten years, poultry meat production has tripled - up to 4 million tons, pork production has doubled - up to 3 million tons. The level of self-sufficiency for these types of meat reaches 90%, and this progress is really great! And, of course, the purpose is not only to maintain the height we have gained, but also to increase the achieved indicators. We can not just provide our own country with enough food products, but also to become the leading agrarian power in the world so we need to work hard to double the share of the agroindustrial complex in GDP.
- From January 1, electronic veterinary certification will be introduced in Russia. To simplify transition to this system, was developed the list of food products, certificates for which can be issued not only by employees of the State Veterinary Service, but also by authorized persons of enterprises. But if this will lead to entry of low-quality products to the domestic market?
- It's out of the question. Firstly, authorized persons of the enterprises will issue certificates only for heat processed products of animal origin, and for fish. Provided that such products or raw materials have already passed safety ensuring procedures determined by veterinary legislation. In addition, we are guided by successful global practices. Working procedures will be passed by accredited experts only - veterinarians who appreciate their reputation. During the certification process, these specialists will receive a check list of requirements based on their education and work experience. The Rosselkhoznadzor (Russia's agricultural safety watchdog) is currently engaged in organisation of regional training seminars. This is a progressive approach aimed primarily at ensuring veterinary safety through the possible traceability of raw materials and products at every stages of production process.
- What does the procedure for certification of such specialists include??
- Everything will be organized with assistance of the Agriculture Ministry and with participation of representatives of industrial unions. Of course, only experienced people will be allowed to the procedure.
-For the purpose of introduction of an electronic veterinary certification system a special operational unit has been created under the Agriculture Ministry. What do its functions include? Will it help manufacturers in transferring to the new system?
- The deadlines for the widespread introduction of the electronic veterinary certification are approaching, therefore Agriculture Ministry has created an operational unit for its implementation. It has already started his operations. This is a complex process with a number of participants. The function of this unit is to assist market participants in their transfer to the registration of veterinary accompanying documents in electronic form gradually and without serious consequences. We noticed a positive trend: the number of issued certificates in electronic form is growing every week, especially in the Volga region, Siberia and beyond the Urals. The leaders in this are Chelyabinsk, Kuban, Bashkortostan, Tatarstan and Novosibirsk. In addition, the unit is monitoring the situation, identifies issues, requiring consideration what problems exist and how they can be solved.
- This year it was planned to introduce a ban on the import of meat and bone meal. So, in this regard Russia is ready to completely abandon the import of these products? What are the volumes of such production?
Yes, it's ready. We propose to completely ban import of these products from sanctioned countries from December 1. Over the past 10 years, meat production in Russia has increased manifold, it concerns primarily pork and poultry meat, and thanks to the development of deep processing, the production of meat and bone meal has also increased. Russia produces about 370 thousand tons of such flour (82% of the total consumption), including 40 thousand tons for unproductive animals.
- Under the Ministry of Agriculture, this year even a working group on meat and bone meal issues was established. What are its real functions? What are the intermediate results of its work?
- This work group was created under the Agriculture Ministry in May. She has observed the current situation in order to understand, whether we can completely get rid of imports. The issue has been constantly argued, it was rumoured that supposedly we would not be able to replace the import of meat and bone meal. Many considered that with the introduction of the embargo, prices on the domestic market would increase, but such probability is small, because the share of meat and bone meal in the total cost of feed does not exceed 10%.
Enterprises included in the top 20 largest pork producers plan to increase the production of meat and bone meal from pork, moreover, the level of organization of meat and bone meal production at large poultry farms in Russia is not lower than abroad and this factor will provide an opportunity for complete replacement of imports by the end of 2017. As for meat and bone meal from chicken raw materials, about 60% of the total demand will be provided by domestic production. If will becomes necessary, deliveries can be made from the EAEU countries, including Belarus, which still accounts for a third of imports.

Source: iz.ru