The largest branch scientific study since the times of the USSR, which was initiated by "Food Export Trade" company to assess production potential of the Urals, Siberia, and Far East regions, showed that, due to the use of modern technologies, scientifically based introduction of fertilizers and return to circulation of unused arable lands, total gross grain harvest may be increased to 90 million tons per year.This will actually double the export potential of the Russian Federation and ensure stability in the food markets of Greater Eurasia friendly countries.
All-Russian Research Institute of Agrochemistry named after D.N. Pryanishnikov, together with seven co-executing research institutes, conducted a regional study of arable lands on an area of more than 30 million hectares and evaluated production potential of these territories, taking into account actual opportunities and promising scientific and technological achievements in plant genetics, targeted farming technologies along with targeted application of fertilizers, climate changes and other factors.
The study shows that, in the middle-term perspective, explored territories, with use of prudent and scientifically based approach, may (with existing human and technical resources) increase production volumes from current 27-29 million tons to 62 million tons per year, and up to 90 million tons per year in future. Production increase is possible due to the use of technologies, scientifically based use of fertilizers and plant protection products, selection of seeds and use of previously undeveloped arable land.
Provided that, one can call important not only use of technologies, but also modern business models adapted to specific conditions, such as “contract manufacturing” - a mechanism developed by the “Food Export Trade” company, combining economic and production activities under long-term contract conditions. Contracting agreements with advance payments and full agronomic support determine types of crops, volumes, quality criteria and requirements for production technologies, as well as quality and safety management, and the cost based on calculated indicators (price formulation). Such approach ensures planned production release for target domestic and foreign markets with specified qualitative and quantitative characteristics, as well as guarantee of sales, predictability and transparency of pricing.
“Food Export Trade” company operates as part of the Russian-Chinese program "New Land Grain Corridor Russia-China", aimed at increasing agricultural production and developing grain logistics infrastructure in the Urals, Siberia and Far East regions.
In accordance with the instruction of the President of the Russian Federation No. Пр-914 dated May 5, 2023, an intergovernmental agreement on the "New Land Grain Corridor Russia - China" project is expected to be concluded between the Russian Federation and the People's Republic of China in order to increase grain production volume in the territories of the Far East, Urals and Siberian Federal Districts, as well as volume of its export to the market of the People's Republic of China.