Want a Place to Invest or Put Your Money? Try Russian Agriculture…

Russia will double its grain exports to 40 million tons a year by 2020, President Vladimir Putin said at the APEC summit in Vladivostok on Friday. “We project that our country will be producing 120 million-125 million tons of grain a year by 2020, which will increase our export capacity to 30 million-35 million tons, and even up to 40 million tons,” Putin said…

Like I have been saying, The Russian government is pouring tons of money into the agriculture of Russia and the West world agriculture businesses are flocking silently to ride the wave…

I am watching as I travel Russia, the warehouses and agricultural equipment factories being built. I am watching considerable sections of old fields being put back into production. I just watched the grain being harvested and lets talk about something old but new that is expanding by the million’s of acres in Russia…

Sveta and I just came back from the village and we simply were stunned by the corn fields that were being harvested. Now I know that in America, you are use to corn, but in Russia corn has not been prominent in the fields, that I travel around, not at all. But this year as we drove, the fields of corn were being harvested, and these fields had no end in the horizon and new combines and tractors were everywhere…

The little villages with there grain storage ares were overflowing with grain and the corn being brought in was in the hundreds of trucks, waiting to dump their loads at the main grain bins…

If I had desired, I could have stopped the car and filled as many sacks with corn silage as I could, because it was falling off the trucks by the tons as they hurried on down the roads trying to get the crops in. For awhile Sveta and I drove on these land mined destroyed Russian roads and I drove to the crunching of corn silage under the tires… 🙂

Now I am much more in tune with agriculture, than Sveta and while she could see what was happening, her city mind then took over and corn became less important. Now my mind kept turning as I took all that I could see in. In fact Sveta and I took a very different way home and saw a better picture on the grain harvest in Russia…

Bet you do not hear about fields of corn, as far as the eye can see in Russia, in the news?

Nuff said except, “We have grain in Russia and lots of it!”

Now all this rambling needs to go back to the beginning of the article…

Russia is increasing production in its agriculture! I have seen chicken farms popping up all over, I see cattle farms popping up, I see farm equipment being transported constantly to farms and I see 5 to 6 times the fields being plowed and planted than there was 6 years ago when I first started to travel Russia…

This is all conjunction to the duos in charge of Russia. Putin and Medvedev made it clear that Russia is going to work hard at helping to feed the world and Putin’s last statement shown above, is showing that…

I think about a few readers of mine, who are farmers and they really want to live in Russia. Well now is the time and the future is big in agriculture in Russia. Russia has the land and Russia is spending the money. I am reading about older Americans everyday and how they are coming to Russia and starting a farm, a farm like they grew up on and their families owned – once upon a time in America…

Kyle Keeton
Windows to Russia…

kKEETON @ Windows to Russia…

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6 thoughts on “Want a Place to Invest or Put Your Money? Try Russian Agriculture…

  1. I hope this growth in the ag market brings prosperity to the local Russian farmer and their families. Many of the farms in Ukraine, for instance, are ‘corporate’ farms. Investors, of the corporate-type, with access to ‘very-low’ interest loans as opposed to the general public, are the ones presently driving this market. And I’ve heard they pay very low wages to the locals. Not sure if this is true but I certainly hope it is not the case.

    And by the way, why the favoritism to John Deere? Why not Minneapolis-Moline? 😉

    Not to downplay Putin (he still looks fit enough to toss a few hay bales around) but he’s between a rock and a hardspot. Until land ownership passes to the private individual I don’t know how much the ag market will grow in Russia. And Russia(I’m differentiating between Putin and Russia) is probably not receptive to allow corporate and bank interests have access to land ownership. And that’s exactly what will happen if Russia doesn’t closely manage it’s national interests. I confident Putin understands this(the real reason why the west hates him). Maybe if Russia limited the size of the banks and regions to where a particular bank can make a an ag loan, then maybe private land ownership would work.

    These bank restrictions were removed some years ago in the US. I believe we have to yet feel the full repercussions. Thankfully we still have a few crazy bankers in the US who live and work in the same communities where they make the ag loans. This helps to keep them somewhat honest and at the same time let’s them understand the market.

  2. blackseabrew: They are working on just what you are talking about! I see a bank shuffling in the way things are done. John Deere green is just so pretty in the fields…

    All I can tell you is that money is flowing and the equipment is new and that was sorely needed. I watched the fields being plowed this time by one tractor and plow that was just plain huge, looked like a Case IH Steiger 535??? Could not get close enough to verify! It was a Case and red in color though… They use to plow these same fields with 4 or 5 tractors and the tractors were those wonderful ancient blue little Soviet tractors…

    But hey I did see a New Holland T9000 Series Tractor! OMG is was beautiful and we had to wait for it to cross our bridge near us and I got a good look at it! So to be honest I have been seeing several new blue tractors replacing that old blue Soviet tractor that has been run to death…

  3. An Oklahoma rancher could be the reason Russia cuts its beef imports by $3 billion annually. Anthony Stidham is a 48-year-old, third-generation rancher from Ada, Oklahoma, who answered an ad in a farming publication and went to work for Russian President Vladimir Putin, training locals in cattle-rearing skills, Bloomberg reported.

    Stidham’s employment—and the import of 60,000 Aberdeen Angus cattle—is part of Putin’s plan to revive Russia’s lost cattle-breeding tradition (eradicated under Joseph Stalin’s rule) and put the country on track to “meet 85 percent of its meat and poultry needs by 2020.”

    “The Tsarist tradition of breeding meat cattle was lost when Stalin enforced a drive toward collective farms in the 1930s, according to Sergei Yushin, head of Russia’s meat lobby,” Bloomberg reported. “The country has mainly slaughtered retired dairy cows for meat since that time.” But dairy cows yield thin, tough, rubbery steaks, which is why the country began importing its beef in 1990.

    On a large cattle farm 250 miles southwest of Moscow, Stidham and others are raising Aberdeen Angus, “a Scottish breed of hornless black beef cattle,” which “have had to cope with winter temperatures that can plummet as low as minus 35 degrees Celsius.” And that’s after making the “four-week journey by sea and road from the U.S. and Australia,” Bloomberg reported.

    “There’s no place in the U.S., Australia, or anywhere in the world that will have cattle as good as what they are putting together here,” Stidham told Bloomberg.

    Since the project began, funded by $800 million in state support, Russia has already reduced some of its beef imports, and “at least 30 steakhouses have sprung up in Moscow.”

    … (T)he plan is to almost double the size of the parent herd by the end of 2013. With new calves, the integrated operation, which involves slaughterhouses to meat-processing facilities, will expand more than fourfold to 250,000 by 2014. It will be able to produce 104,000 meat bulls a year and supply 30,000 metric tons of boneless beef to the market.

    Miratorg Agribusiness Holding, Russia’s largest meat importer and the recipient of the $800 million state start-up capital, runs 16 cattle farms now and expects to up that number to 33 by the end of 2013. Eventually, the country hopes to export beef for the first time in its history.

    “Russia has all opportunities to be a big beef exporter in 10 to 15 years,” Miratorg CFO Vadim Kotenko told Bloomberg.

    —Holly Wall, News Editor

  4. Pingback: Banning Western Food: Now this makes me smile… » Windows to Russia

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