Russia: Livestock To Boost Grain

Russia’s 2010 federal budget will focus on its meat industry, investing more than US$2.76 billion in meat and dairy. This greater demand should increase feed-crop related agriculture for Russia, the world’s third largest wheat producer.

More Land, Less Yield

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The 2009 grain crop was 10% lower than the previous year, reports the Russian State Statistical Service (Rosstat). At 97 million metric tons (MMT), however, it was still the second highest in the last 16 years. Wheat production was 61.7 MMT, down 3% from 2008, while barley production fell 23% to 17.9 MMT, reports a US Department of Agriculture Foreign Agriculture Service GAIN (Global Agricultural Information Network) report.

More land was dedicated to grains in 2009, but poor weather brought down production for all crops except rice, which was up by 23% to 9.08 MMT.

Conditions Improve

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Even with more drought predicted for 2010/11, particularly in the Volga and Central Districts, which together make up about half of all area planted to winter grains, Russian farmers will dedicate even more land to winter grains — which tend to be more productive than their spring counterparts — such as wheat, which accounts for about 80% in total area; rye (15%) and barley (5%).

Industry experts predict a grain crop of 90 to 97 MMT again this year.

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