Exports of Russian Cereals: Analysis of the Current State and Development Prospects

Abstract

Exports of Russian cereals have been growing for five years. In 2017, exports of Russian cereals came to the second rate in the world, and wheat exports came to the first rate. In near future, Russia intends to increase its export potential and maintain its leadership in the global cereals market. The authors have put forward the hypothesis that increasing exports of Russian cereals are not just the result of a favorable combination of weather, economic and political conditions, but it is an expected result of the development of Russian cereal farming. The purpose of the study is to examine the factors that could increase the volume of exports of Russian cereals, and elaborate perspective ways to develop the export potential to strengthen the Russian position in the world cereals market. Using the methods of theoretical analysis, the authors have revealed the peculiarities of Russian and world market development. Economic and statistical methods of analysis have allowed to determine the trends and the conditioning factors in the cereals market development. The authors have come to the conclusion that increasing exports of cereals are caused by growth in cereals production and changes in the expense side in the Russian cereals balance, as well as an active foreign economic activity to expand cereals supplies, and state exports support. Russia is able to increase the volume of food exports, augmenting not only exports of cereals, but also derivative products, which are characterized by high added value, that is the most promising way to develop the export potential.