The website of the TASS news agency published a review article covering the current situation in the Russian agro-industrial complex. According to the authors (as they refer to food producers), a food shortage and empty shelves in supermarkets are not expected either in the near or in the distant future.
The prices for goods, however, are being revised, which comes under the influence of the crisis phenomena in the overall consumer market due to the increase in credit rates, the rise in prices for imported equipment and raw materials, as well as changes in logistics. According to TASS, so far the agricultural industry has hardly felt the sanction pressure – largely thanks to the state-subsidized loan programs, which helped bring import substitution rates in a number of industries up to 80%.
The authors of the article also spoke to the heads of the country’s largest companies about the future prospects of the Russian agricultural industry. Alexander Rudakov, the President of ECO-Culture holding, was one of the authoritative experts interviewed.
The key question posed to all interviewees was about food prices and how they will change in the near future. According to Alexander Rudakov, the food price tag in today’s reality is influenced by a number of factors. These include inflation itself and inflation expectations, reduction of imports, and more conscious consumer behavior: in their attempts to save money, people have become more careful in their choice of food products. All that combined makes the upward trend in prices restrained by the factors affecting their persistence and decrease. The volatility of prices for specific goods becomes higher: with some items getting more expensive or cheaper at a certain moment, there is no unified vector in price formation. Still, there is a high degree of certainty that we should not expect a significant increase in vegetable prices. On the contrary, producers are now ready for the new season, and summer is approaching, which means a seasonal price decrease can be expected.
“Back in the first wave of sanctions in 2014, ECO-Culture played a significant positive role in the domestic vegetable market in the context of the import substitution mission set for agricultural producers. The fruit and vegetable products grown in the holding’s greenhouse facilities posed serious competition to foreign products and even displaced those from the market in some regions. Meanwhile, consumers note that Russian tomatoes offered by ECO-Culture surpass imported ones in terms of their quality and gustatory characteristics.
The agricultural holding’s significant contribution to strengthening national food security has been recognized at the federal level, which has been repeatedly stressed by representatives of the Russian Ministry of Agriculture. Today, the Ministry works in close cooperation with the business community to develop a set of measures to maintain Russian producers’ operational efficiency.
With a stable level of food security observed in almost all segments of the agro-industrial complex, there is no need to fear any food shortages. The opinion has been confirmed not only by producers of vegetable and grain products but also by meat and dairy enterprises, whose representatives also expressed their views in the review.
For the full text of the article, please visit the TASS official website.