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The President of the Board of Trustees the NHS Pavel Skurikhin believes that "firmness in the execution of agricultural policy is becoming ever more valuable as the creation of stable rules of the game, in order that farmers can plan your budget and not depend on "command" methods", - the position he outlined during the program "Point of view".
The TV channel "Red line" agreed with him and the General Director of JSC "dashkovka" Victor Taranin: "I want to maintain stable rules of the game. We are working blind".
A unified view of them, and question the jump in the prices of basic products. Pavel Skurikhin says that "no objective reasons". Victor Taranin adds: "These business executives have figured out the whole situation. But it still comes down to their profits".
By summarizing the results of a survey conducted on the channel's website, the moderator noted that "the agricultural policy of the government, which behaves like a bull in a China shop, in present times of crisis is the main destabilizing factor".
In the discussion about the current situation in agriculture also took part Director of "Sovkhoz imeni Lenina" Pavel Grudinin. He parried the question of the leader Dmitry Agranovsky: "Hunger does not threaten us. But the support for farming is necessary", however, as "the reduction of dependence on imported components, agricultural equipment, genetic material, raw materials", – is stressed by all participants "Point of view", which is in the "regime of isolation" was held outside the Studio walls.
Pavel Skurikhin also drew attention to the subject of export restrictions: "In our view, is a redundant measure. There are other effective mechanisms, for example, commodity interventions. There are ultimately customs duties, which today is zero, but if desired, they can be very fast to enter – it is also very effective... But there is a new mechanism – quotas. In my opinion, this only adds to the opacity [...]. You must clearly say to the market that as soon as the introduced quotas, it is only for 3 months and more will never be [...].
And given the fact that we are faced with problems of funding in the current environment, it is necessary to implement a digital platform to interact with agricultural producers, which would exclude such interruptions [...]. None of the sowing, of course, not going to give up. But the other thing is to create tools that will allow such conditions in a timely manner and rhythmically to provide funding is, of course, very important," - adds Pavel Skurikhin.
With the digitalization of the future – believe in the Union. In the development of one of these platforms the NSA takes part for more than two years. Being in constant dialogue with a nearly four thousands of grain producers in Russia, the Union is familiar with the problems of the industry.
The key question for grain production is stable and profitable sales. "In fact today, we have what we have – 30% of the grain we sold abroad. If there arise certain barriers is, of course, creates no less of a problem than the decline in effective demand within the country", - added Pavel Skurikhin.
With the full version of the program You can find here: https://youtu.be/Mr26a8v1ULA
The text version is posted below.
The program "Point of view" of 14 April 2020
Pavel Skurikhin President of the Board of Trustees of the National Union of grain producers
Grudinin Paul – Director of "Sovkhoz imeni Lenina"
Taranin Victor – General Director of JSC "dashkovka"
Dmitry Agranovsky: "In the period from 1 April to 30 June, the government introduced quotas on grain exports from Russia in the amount of 7 million tons. How do You assess this measure and its consequences? Whether it is connected with the risk of lack of food? Whether the export is so large that we have to limit it?"
Skurikhin Pavel: "We believe that the reason for export restrictions is not. In our opinion it is a redundant measure. If you look at the numbers, we understand that the gross harvest of this year we have a fairly large 121 million tons, compared with last year 113 million tonnes. And we export today is lagging by 13% from last year. Accordingly, we understand that even if the quota is selected, the export is actually below 4 million tons, than last season. Although the gross harvest, we have more. We can see that from the beginning of the year has shipped only 8 million tons of grain for 3 months. And for the next 3 months has set a quota of 7 million tons – the same as in principle has been shipped. It would seem that nothing has changed, but signal to the market and investors have been given not very good. There are other effective mechanisms, for example, trade intervention, i.e., has announced that it will file a million tons of grain in the market – in any case, it will affect prices for grain – in the direction of reducing them. There are ultimately customs duties, which today is zero, but if desired, they can be very fast to enter – this is also a very effective mechanism. And then there's a new mechanism – quotas. In my opinion, this only adds to the opacity of the grain market".
Dmitry Agranovsky: "this year is sown? I have a feeling that all these fluctuations of the ruble, oil prices and so, they began to critically unbalance agricultural production. The crop will not fall through? I even according to official media hear about that".
Skurikhin Pavel: "If we talk about spring wedge, then today planted a 10% of 2.6 million hectares last year on this date was planted 1.2 million ha. Given that the condition of winter crops is good, and if there is no further unforeseen catastrophic circumstances, we can count on planned harvest, which the country is 125 million tons. However, in terms of the epidemiological situation found it difficult to obtain financing from banks, many went "on udalenka", and those households who even paid off their lines of credit, not often to be renewed. I'm not saying this to be a massive. We are in constant dialogue with a nearly four thousands of grain producers in Russia – nobody from seed, of course, not going to give up. But the other thing is to create tools that will allow such conditions in a timely manner and rhythmically to provide funding is, of course, very important. One such opportunity can be of digital platforms, in particular, our Union for more than two years participates in the development of this digital platform. In my opinion, this is the future, so as not to endanger the rhythm of financing agricultural production, because this is, of course, a serious question."
Dmitry Agranovsky: "We all sit at home, have different speeds funneling money from someone they will end soon, some don't. But anyway, the effective demand falls. People consume less, save on this almost rainy day, which came, of course, and farmers will have a problem with that. How seriously do You assess the fall latinporno demand? And how it will affect You?"
Skurikhin Pavel: "of Course, it's very disturbing. If to speak about grain production, there is, of course, this stable cost-effective marketing for us, in fact, the main source of money, because we do not receive any significant subsidies, and we are unable to take advantage of falling oil prices. Accordingly, the key issue for us is a stable profitable sales. Therefore, the measure which is now introduced quotas, and in fact 30% of our grain goes abroad. Good or bad – another question. But I agree that we need to develop domestic processing and domestic consumption in animal husbandry, etc. But in fact today, we have what we have – 30% of the grain we sold abroad. If here there are certain barriers that this creates for our stable of profitable sales are not smaller problems, than the decline in effective demand within the country. Because a loaf of bread and box of pasta is much easier to find money than in the deli, especially because it is a basic food for our people we looked, what happened to buckwheat. There is no shortage of buckwheat in the country, but nevertheless, almost everyone considered it his duty "to buy", so to speak.
Dmitry Agranovsky: "Prices-that have grown up, by the way".
Skurikhin Pavel: "Speculative leap always happens on the background of the hype. Someone on this just warms hands because there are no objective reasons for such a jump in the prices of these basic products: cereals, bread, pasta made in the country (I'm not talking about the imports). And this, of course, worried. But I would still single out here the establishment of stable rules of the game, in order that farmers can plan your budget and do not depend on such "command" is called, the methods".
Victor Taranin: "You know, I want to maintain stable rules of the game. We are working blind".
Dmitry Agranovsky: "And now how is it possible?"
Victor Taranin: "It would be possible if there were real business executives and counted the whole situation. They worried for the people, for the people – as he will eat what he will eat, will he be able to eat more or less normally? But it still comes down to their profits."
Dmitry Agranovsky: "the Results of a survey that we conducted on our website show that today most threaten the food security of Russia:
- agrarian policy of the government (67%)
- dependence on foreign technology and seeds (28%)
- the spread of coronavirus (3%)
- the fall of the ruble (2%)
How would You rate these results? Indeed, the agricultural policy of the government, which behaves like a bull in a China shop, in present times of crisis is the main destabilizing factor."
Skurikhin Pavel: "No sudden movements from the point of view of policy change, as we have said, this is something that applies to quota, the rest of us have not changed much. Even in terms of the "perfect storm", which You quite rightly said, the hardness in the implementation of agricultural policy is becoming ever more valuable. And it was during this "storm", I wouldn't change these rules, i.e. what is happening now. Second, this is what has been said by colleagues who participated in the survey - this is to reduce the dependence on imported components, agricultural equipment, genetic material, raw materials is, of course, quite true. Therefore, those survey results that we are seeing today, in my opinion, they have a completely solid basis and the right to exist."
Dmitry Agranovsky: "the Situation in agriculture requires an immediate response. What immediate measures would You propose?"
Skurikhin Pavel: "first, I believe that it is necessary to clearly say to the market that as soon as the introduced quotas, it is only for 3 months and never will be. Because interim measures, unfortunately, tend to become permanent – and it's scary. And second, given the fact that we are faced with problems of funding in such circumstances, it is necessary to implement a digital platform to interact with agricultural producers, which would exclude such interruptions in funding".