SOURCE: American Embassy- Moscow, Russia
1. IN AN INTERVIEW IN "SELSKAYA ZHIZN" PUBLISHED 0N APRIL 4, 1996, DEPUTY PRIME MINISTER OF THE RUSSIAN GOVERNMENT AND ACTING MINISTER F0R AGRICULTURE ZAVERYUKHA TOUCHED ON SEVERAL ISSUES RELATING TO AGRICULTURE. HIGHLIGHTS OF THE INTERVIEW ARE AS FOLLOWS:
2. PROTECTION OF DOMESTIC MARKET FROM INVASION OF IMPORTED PRODUCTS: ZAVERYUKHA MENTIONED THAT IMPORTS OF AGRICULTURAL AND FOOD PRODUCTS TO RUSSIA IS NOT A NEW DEVELOPMENT. IN 1992 RUSSIA WAS ON THE VERGE OF DANGEROUS SHORTAGE OF FEED AND FOOD PRODUCTS, AND IMPORTED 28.8 MILLION TONS 0F 56 MILLION TONS OF GRAIN IT NEEDED FOR DOMESTIC CONSUMPTION. LARGE VOLUME IMPORTS OF MEAT AND DAIRY PRODUCTS HAD ALSO OCCURRED.
THE PROBLEM IS NOT IN IMPORTS OF FOREIGN AGRICULTURAL AND FOOD PRODUCTS BUT
IN
DISCONTINUATION IN 1992-1995 OF STATE SUPPORT OF DOMESTIC AGRICULTURE. ALL
FOREIGN COUNTRIES PR0TECT THEIR AGRICULTURE, AND RUSSIA SHOULD DO THE SAME,
TAKING INTO CONSIDERATION WORSE CLIMATIC CONDITIONS, SEVERE WINTERS, AND POOR
TECHNICAL EQUIPMENT OF AGRICULTURAL PRODUCTION, WHICH MAKES RUSSIAN AGRICULTURE
TOO COSTLY AND NOT COMPETITIVE IN THE WORLD MARKET. THAT IS WHY RUSSIA NEEDS
TO PROTECT DOMESTIC PRODUCERS. FROM YEAR TO YEAR RUSSIA HAS BEEN RAISING IMPORT
TARIFFS TO ABOUT 20 PERCENT FOR DAIRY PR0DUCTS, 25 PERCENT FOR MEAT, AND ALMOST
45 PERCENT F0R P0ULTRY. HOWEVER, EXPORTING COUNTRIES INCREASED SUBSIDIZING
THEIR EXPORTED PRODUCTS IN RESPONSE.
ZAVERYUKHA CONSIDERS THAT THE GOVERNMENT SHOULD INTRODUCE QUOTAS ON IMPORTS OF AGRICULTURAL PRODUCE.
3. IMPORTS OF AMERICAN POULTRY: ZAVERYUKHA MENTIONED THAT MOST OF MASS MEDIA, BEING DEPENDENT ON CORPORATIVE INTERESTS OF NEW RUSSIAN C0MMERCIAL STRUCTURES, "SOYUZCONTRACT", FIRST OF ALL, WERE LOBBYING IN FAVOR OF AMERICAN POULTRY IMPORTS, ALTHOUGH THESE IMPORTS RUIN THE RUSSIAN BROILER INDUSTRY. SUPPLY OF CHEAP US POULTRY IS USED TO TAKE CONTROL OVER THE RUSSIAN MARKET, AND MAKE IT DEPENDENT ON CHANGES IN US PRICES AND FOREIGN POLICY. FURTHERMORE, CONCERNS AND DEMANDS OF RUSSIAN VETERINARIANS WERE REASONABLE AND WERE PROVED BY THE SPREAD OF SALMONELLOSIS IN THE US, A FACT RECENTLY REVEALED BY NEWS REPORTS IN REUTERS.
4. DECREE ON LAND, SIGNED BY THE RUSSIAN PRESIDENT: ZAVERYUKHA HAD READ AND
WORKED ON THAT DECREE BEFORE IT WAS SIGNED BY THE
PRESIDENT. IN ZAVERYUKHA'S OPINION, THE DECREE DOES NOT LEAD TO DISMANTLING
OF BIG AGRICULTURAL PRODUCTION UNITS. INSTEAD, IT WILL FACILITATE LAND TRANSACTIONS
AND MORE EFFECTIVE USE OF LAND THROUGH ACQUISITION OF LAND BY BIG AND MORE
PRODUCTIVE PRODUCERS FROM THOSE SMALL LAND-SHARE 0WNERS, WHO FOR VARIOUS REASONS
WANT TO
DISCONTINUE THEIR FARMING.
5. AGRICULTURAL PRODUCTION, AND RELIABILITY OF REPORTED DATA: ACCORDING TO ZAVERYUKHA, NOT ALL RUSSIAN AGRICULTURAL PRODUCERS ARE IN DECLINE CAUSED BY FALLING DEMAND FOR THEIR PRODUCTS. PRACTICALLY ALL GRAIN, POTATO, VEGETABLES, SUNFLOWER SEEDS, AND SUGAR BEETS PRODUCERS HAVE FOUND THEIR MARKETS. SELLING OF COSTLY RUSSIAN ANIMAL PRODUCTS IS LIMITED, AS THESE PRODUCTS CAN NOT COMPETE WITH CHEAPER IMPORTS FROM BOTH WESTERN AND THE CIS COUNTRIES. THE RUSSIAN GOVERNMENT WILL NEVER BE ABLE TO SUPPORT THOSE PRODUCTION UNITS WHILE THEIR YIELDS OF MILK PER COW ARE 1.9 TONS A YEAR OR EVEN LOWER.
ZAVERYUKHA ACKNOWLEDGED THAT RUSSIA HAS PROBLEMS N0T ONLY WITH PRODUCTION,
BUT WITH REPORTING ON THAT PRODUCTION AS WELL. THE FORMER PERIOD OF STRICTLY
CONTROLLED REPORTING HAS BEEN FOLLOWED #BY A PERIO
D OF IRRESPONSIBILITY OF MANAGERS 0F
ALL RANKS, WHICH HAS AFFECTED OUR ABILITY TO ACCURATELY CALCULATE FOOD RESOURCES".
THUS, IN THE BEGINNING OF 1995, ACCORDING T0 OFFICIAL REP0RTS N0 GRAIN WAS
LEFT IN THE C0UNTRY AS OF MARCH 1995. HOWEVER, PRACTICE SHOWED THAT BY THE
BEGINNING OF HARVEST IN 1995 RUSSIA STILL HAD 8.0 MILLI0N TONS OF CARRY0VER
GRAIN. #TODAY, ACC0RDING TO OUR GRAIN BALANCE WE DO NOT HAVE ANYMORE GRAIN,
AND YET THERE ARE NO BREAD RIOTS".
ZAVERYUKHA ACKNOWLEDGED THAT THE CRISIS IN RUSSIAN AGRICULTURE IS DEEP, AND PROMISED THAT THE GOVERNMENT WOULD SUPPORT AGRICULTURE. THUS, WRITING OFF AGRICULTURAL PRODUCERS' 1993-1994 DEBTS T0 THE BUDGET, AND POSSIBLY DEBTS ON 1995 COMMODITY LOANS IS EXPECTED. ACCORDING T0 ZAVERYUKHA, MOST DEMANDS OF THE AGRARIANS -- TO FULFILL THE FEDERAL OBLIGATIONS TO AGRICULTURE AND TO RESOLVE PRICE DISPARITY PROBLEM -- ARE REASONABLE; OTHER DEMANDS ARE QUESTIONABLE AND NEED FURTHER PEACEFUL DISCUSSIONS.
6. 1996 CROP PROSPECTS: RUSSIAN PRODUCERS HOPE F0R THE BEST, AND A LOT HAS
ALREADY BEEN DONE FOR THE FUTURE CROP. HOWEVER, MARCH, AND THE BEGINNING OF
APRIL, 1996 SHOW CAUSE FOR C0NCERN: IN SOUTHERN RUSSIA SPRING IS AT A MINIMUM
TWO WEEKS LATE, WHICH MAY AFFECT SPRING SOWING. IN SOME REGIONS OF RUSSIA,
MAY/JUNE, 1996
TEMPERATURES ARE FORECASTED HIGHER THAN AVERAGE AND PRECIPITATION LOWER THAN
AVERAGE. THE SHORTAGE OF MINERAL FERTILIZER AND AGRICULTURAL CHEMICALS MAY
ALSO AFFECT FUTURE CROP PROSPECTS.
7. ON MOTIVES TO TERMINATE MEMBERSHIP IN THE AGRARIAN PARTY: AFTER HIS DECISION TO STAY IN THE GOVERNMENT, MR. ZAVERYUKHA DECIDED TO SUSPEND TEMPORARILY HIS MEMBERSHIP IN THE AGRARIAN PARTY, WHEN THAT PARTY OFFICIALLY ANNOUNCED ITS SUPPORT TO THE LEFT OPPOSITION TO THE GOVERNMENT. THE GOVERNING BODY OF THE PARTY THEN DECIDED TO EXCLUDE MR. ZAVERYUKHA FROM THE PARTY.