The government intends to allocate 4.8 billion rubles next year to support oilseed producers.
Including — sunflower, soybeans, rapeseed, flax. The corresponding decree has already been signed by Russian Prime Minister Mikhail Mishustin.
It is planned that all these funds will be distributed among 43 regions.
The recipients will be both companies and individual entrepreneurs who work in the field of growing oilseeds or their processing.
Such government assistance should increase the production of oilseeds in general by about 1.74 million tons.
It will be provided within the framework of the federal project «Export of agricultural products», which suggests that the goal is to support exports.
Is the oilseed market depressed?
This opinion was expressed by the Director General of the Institute for Agricultural Market Studies Dmitry Rylko. He believes that this is due to the decline in world prices for oilseeds, as well as the profitability of production.
True, a good harvest in Russia against the backdrop of a rather low one in Ukraine can, to some extent, correct the situation.
As Mikhail Mishustin noted, the main goal of state assistance is precisely to maintain profitability, to prevent farmers from reducing sown areas next year, which could undermine the food security of the Russian Federation.
So far, however, there is little threat to it: for the current season, Russia’s self-sufficiency in sunflower oil, for example, is 200%.
“Thus, we expect to support the profitability of farms.
Farmers will not be able to reduce the area under oilseeds next season, and on the Russian market, people will always have a wide and high-quality choice of the products they need,” the head of the Russian government noted.
A very good crop of oilseeds this year at the level of 28 million tons, as well as large carryovers, contributes to good performance.
Will butter production develop?
This is quite possible if two important conditions are met, which Mikhail Maltsev, executive director of the Oil and Fat Union, spoke about.
Farmers will not keep their products in warehouses in the hope of rising prices.
The protective duty on the export of raw materials, that is, sunflower itself, will remain.
In this scenario, record exports are quite likely in 2022-2023: growth can be up to 70%, as a result, the volume of oil exported abroad will be at the level of 7.5 million tons.
There are also good expectations for oilcake: its exports may double, up to 5.9 million tons.
