Russian Far East Soy Exports May Hit $600 Million by 2024
Deputy Minister of Agriculture of the Russian Federation Sergey Levin made a report at the session of the Eastern Economic Forum titled “Granary of the agro-industrial complex: how to export more food from the Far East”.
Soybeans and their derivatives are the second most important agricultural export items of the Russian Far East. Last year, supplies of soybeans from the Far Eastern Federal District amounted to about 840 thousand tons or $242.8 million, which is 2 times more than in 2017. The growth was primarily due to the demand in China. According to the deputy minister, it is expected that by 2024 the volume of soy exports from the regions of the Far Eastern Federal District will amount to about $600 million.
Mr. Levin also elaborated on the implementation by the Ministry of Agriculture of Russia of the federal project “Export of Agricultural Products”. By 2024, the regions of the Far Eastern Federal District will increase food supplies abroad to $5.9 billion against $3.8 billion in 2017. At the same time, the share of the Far East in the total volume of planned Russian agricultural exports should be 13.2%.
The main trading positions of the Far Eastern Federal District are fish and seafood, which account for 87% of all supplies. By 2024, they will retain leadership with an export volume of $5.49 billion. It is planned to increase food supplies 3 times: from the current $45.3 million to $ 151.8 million by 2024.
The Ministry of Agriculture is constantly working on bringing Russian producers to foreign markets and removing trade barriers. At present, 34 dairy enterprises and 31 poultry meat producers are accredited for export to China. In addition, a plan was signed to deepen cooperation with China in the field of soybeans trade. This plan may help to increase annual soy supplies to 3.7 million tons by 2025.
According to Sergey Levin, despite the potential of the Far East, it is necessary to solve a number of problems to achieve the export target. Among the main ones are the deepening of the degree of processing of agricultural products and the development of appropriate industries in the region, as well as improving the export-oriented agrological infrastructure.
The Eastern Grain Gate multimodal transport corridor in the Zarubino port will be launched in the nearest future. It will help to boost grain shipments to China and reorient part of export grain cargo towards terminals located in the deep-water ports of the Far East Federal District. Transshipment capacities of the port will amount to 10 million tons of grain crops, and it is also planned to purchase 3-8 thousand units of specialized rolling stock, Mr. Levin concluded.