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Agribusiness will be the only industry to grow in 2020

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Agribusiness will be the only industry to grow in 2020

The agricultural sector in Russia will be the only sector of the economy where there will be growth at the end of the crisis year 2020.

Now, amid a drop in all commodity revenues, the country has a way to increase revenues from supplies to foreign markets of grain, primarily wheat. For example, according to the new forecast of the US Department of Agriculture, while wheat crop in Russia and Ukraine is growing, its decline is expected in Europe and Kazakhstan.

In 2020, the US Agriculture Department increased its forecast for the harvest of wheat in our country by 1.5 million tons and by the same amount increased exports of wheat from Russia for the current crop year, which is considered from July of this year until June 2021.

The foreign agricultural body has forecast the Russian wheat harvest in our country to reach a total of 78 million tonnes. Of this amount, Russia can supply other countries with almost half of the wheat, the U.S. forecasts. At the same time, domestic exporters believe that this figure could be even higher.

This projected increase in the production of wheat in our country is associated with a reduction in the forecast of global production of this major crop by almost 3.5 million tons. Globally, just over 766 million tons of wheat will be produced in 2020.

The strongest jump downwards (by 4 million tons) is expected in the European Union. The wheat harvest in Europe is now expected to be over 135 million tonnes. Exports of European wheat may be around 26 million tons, which is almost 1.5 times less than from Russia.

Made in Russia // Made in Russia

Author: Ksenia Gustova

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