BISNIS - Agribusiness Report - Current Events

30 June 95


Agribusiness Report - Current Events

**NOTE: The following information was extracted from the RUSAG-L listserv produced in cooperation with the Foreign Agriculture Service of the U.S. Department of Agriculture.


26 June 1995:
-According to Goskomstat figures, the production of meat products, cheese, preserved milk, and low-fat milk products fell between 17 and 35 percent on average the first five months of 1995. In addition, the production of staples declined by an average of 12 percent. The output of potatoes and margarine products fell by 34 percent and 20 percent respectively. (OMRI, June 26, 1995).

20 June 1995:
-A US delegation will visit Russia at the end of June to discuss privatizing Russian agriculture and increasing US farm exports to Russia. Vice-President Al Gore and Agriculture Secretary Dan Glickman will be among the dignitaries taking part in the discussions. (Nexis/Lexis through Mead Data Central Inc., Reuter Textline, Lloyds of London Press, June 20, 1995).

16 June 1995:
-Severe drought conditions in central Russia threaten to damage grain production and livestock feed. The hot, dry weather began in the second half of May and is expected to continue for some time. Sergei Bystrov, a member of the Agrarian Party parliamentary faction, said farmers are losing as much as 30 tons of grain a day in the Stavropol region, which is one of Russia's largest grain-growing regions. According to Itar-Tass, a Russian agriculture ministry letter put the expected 1995 harvest yield at 75 million tons, down from a previous estimate of 80-82 million tons. The Agrarian Union farm lobby is forecasting as little as 65-70 million tons. (Nexis/Lexis through Mead Data Central, Inc., Reuters Limited, June 16, 1995).

-The Russian Agriculture Ministry is predicting a much lower grain crop in 1995. The Ministry expects grain production to equal no more than 75 million tons, a 6.3 million ton decrease from last year's figures. Only 13.2 million hectares or 32.6 million acres of winter grain crops were planted this year, nearly 400,000 hectares or 988,400 acres less than last year. In addition, the total area planted in potatoes decreased by 95,000 hectares or 234,700 acres. Russian farmers fulfilled 90 percent of the targeted spring planting and planted less corn, buckwheat and rice in general, compared with the previous year. (Nexis/Lexis through Mead Data Central, Inc., Reuter Textline Novecon, June 16, 1995). -Raisa Pankova, a department head in the Russian State Trade Committee, told the Federation Council Agrarian Policy Committee that Russia's farm sector would not be able to provide enough food for the country in 1995. Pankova said Russia's output in meat products would fall short by 400,000 tons, 80,000 tons in butter, and at least 1 million tons in sugar. Pankova said she supports food import tax hikes only during times when Russian producers can fulfill market demands. (OMRI, June 14, 1995).

9-16 June 1995:
-Economics Minister Yevgeny Yasin said Russians will not notice the food import tariff increase scheduled to take effect July 1. Yasin noted the average tariff would only increase from 9% to 13%. He disagreed with Moscow Mayor Yuri Lyuzhkov who predicted tariff hikes would cause food prices in Moscow to increase dramatically. Yasin said the figures drawn up by the Moscow city government were "incorrect and ungrounded." (Interfax Food and Agriculture Report, Vol IV, issue 24, June 9-16, 1995, p. 3).

-Russian farmers have not received the designated amount of fertilizer for this year's spring crops, and they still face serious shortages of fuels and lubricants. Farmers have received 95% of the targeted amounts of pesticides and have used them effectively to combat the large, hot-weather buildups of locusts in the Volgograd, Astrakhan, and Rostov regions and in Kalmykia. Many farmers in the Northern Caucasus and on the Lower Volga River have already begun to lay in hay and feeds, but some are being held back by feed-harvesting machinery in poor repair. Only 50%-60% of Russia's machinery was in working repair as of June 1. Officials estimate a cost of 3 trillion rubles to fix the machinery. (Interfax Food and Agriculture Report, Vol IV, issue 24, June 9-16, 1995, p. 6).

6 June 1995:
-According to an article in Izvestiya, May retail prices in Russia increased 7.9%. Food items were up 8.8%, consumer goods 5.6%, and consumer services 11.1% from the previous month, Retail prices have increased 67% during the first five months of this year. (OMRI, June 6, 1995).

BELARUS

9-16 June 1995:
-Belarus's chemical plants and major exporters of fertilizers report a 13.4 percent increase in production from the same period last year, worth an estimated $433 million. The massive agrichemical plants are capable of providing Belarus farmers with all the nitrogenous fertilizer the farmers need, but Belarus farmers cannot afford to buy the locally made fertilizer. Hence, the plants have been forced to concentrate on exports. Belarus shipped 3.202 million tons of potash fertilizer, worth $220 million to countries outside the former Soviet Union last year. It also shipped 120,000 tons to Russia and 29,000 tons to Ukraine. Domestic consumption of potash fertilizer amounted to only 252,000 tons. (Interfax Food and Agriculture Report, Vol IV, issue 24, June 9-16, 1995, p. 4).