Prospects for increasing exports of Russian wheat to the world market

Abstract

The article discusses the development of wheat export, which is the main grain crop in the structure of production and export of Russia. The record crop of grain crops in 2017 provided a good basis for the activation of Russian grain exporters in the world market. An analysis of geographical areas by source of grain export showed that crop growth allowed Russia to become a leader, as the main North American and European competitors experienced certain difficulties that led to a reduction in their export potential. The main geographical areas in which there is an increase in demand for wheat are the countries of Africa and Asia, whose population needs a more affordable form of food, which have become the main importers for Russian wheat along with Egypt and Turkey. Russia mainly exports low-grade wheat of the 4th and 5th grade; therefore, such wheat at a lower price and relatively high level of protein content is competitive in a number of foreign markets. The key problems for the export of Russian wheat are unstable gross grain harvests in Russia, which determine the search for innovative-intensive methods of increasing the yield and its stability, and the development of transport and logistics infrastructure. It is necessary to increase port capacities due to the Baltic and Far East directions in the context of political contradictions between Russia and Turkey and expanding the geography of wheat supplies to Africa and Southeast Asia for Russia makes sense. This will not only increase the competitiveness of exports, but also create additional incentives to increase grain production in a number of regions of the country remote from the Azov-Black Sea ports.