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Wednesday, March 21, 2018

“Import substitution products are hindered by gaps in legislation”

Producers think is quite achievable the government’s plans to reach self-sufficiency in just five years. Thanks in response to sanctions Russia significantly increased the production of meat, milk and other products. However, these ambitions could be frustrated, if not addressed in a separate hole in the legislation.

The Ministry of agriculture plans to reach 100 percent self-sufficiency in meat, milk and vegetables by 2020. While milk production is expected to grow by 7 million tons, meat – by 500 thousand tons, corn – 10 million tons, for which investment in the sector should be increased by 270 billion roubles or a total of at least 40 billion rubles annually. Over the past 10 years Russia has managed to increase production in this sector by 40% and to fully provide itself with grain and sugar (even sugar in excess). This crisis literally forced to develop their own internal agricultural market, which is now well equipped to compete with the West. In short, the substitution is at a good pace. But there are also complications that require action by the state.

How to do without palm trees

“It may be wise to limit the export of our raw materials. For example, we have a lot of wheat, but it ends with lentils, very little chickpea. Trading companies export a large part in other countries”

“Of course, for 2015 all the problems with substitution, we do not decide, and cannot be denied temporarily existing negative moments, – stressed the member of the Board of Directors of the holding company-the manufacturer of organic agricultural products “Agricola” Andrey Grachev. For example, the replacement of imported cheese were constrained by lack of raw milk. But in General the process of replacing imported products on their own instills confidence. Positive aspects are many. Domestic producers have access to opportunities for growth, Russian citizens are benefiting from new jobs and the national economy is becoming less dependent on foreign partners.”

The crisis has had an impact on the balance of prices. For example, organic produce has always been considered the premium class and were expensive. But because of the growth rate of the foreign currency prices of agricultural products industrial rose more than organic. And this is a dangerous trend.

“Industrial agriculture is a big part of the market, and it’s natural to feed the population. Organics cannot cover the whole market. But industrial production in two years has risen by almost 30%, but organic still only 10%. In the conditions of crisis the consumer tries to save money and choose the cheaper product. What will unscrupulous manufacturers of mass food production? They are to hold down prices and stay on the market, will be to cheat and reduce the quality of the products,” said Andrey Grachev newspaper VIEW. A textbook example of this is the use of palm oil in dairy products that is unsafe for health.

Good manufacturers are proud to use natural ingredients and palm oil disdain. They say the equipment deteriorates. Many Yaroslavl, Kostroma, Vyatka cheesemakers, for example, noted that trying to produce from their raw material (of course, if you have your own herd). “Our advantages are lying under your feet is clean, unused land,” reminds Grachev. Indeed, in Russia more than 40 million hectares of clean land, many years “resting”. It took all used chemicals, and it is perfect for growing ecologically clean products.

Proof by contradiction


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