At the end of 2020, Russian manufacturers of pesticides for the first time surpassed in terms of sales volume of suppliers of imported products, said Vladimir Alginin, Executive Director of the Russian Union of Producers of Chemical Plant Protection Products (RSP KSPP) and Deputy General Director of Firm "August" JSC for general issues. Sales of drugs by companies included in the RSP KHSPP in physical terms reached 97,9 thousand tons, while the figure for the import of imported drugs, according to the Union, was 60,6 thousand tons, and the volume of products manufactured by foreign companies at Russian enterprises under the tolling scheme was 29,3 thousand tons. As a result, the total volume of sales of pesticides by foreign companies amounted to 89,9 thousand tons, i.e. 8% less than domestic drugs sold.
For comparison: in 2019, Russian producers of agricultural chemicals shipped 75,8 thousand tons of finished products to agrarians, the volume of direct imports was at the level of 55,1 thousand tons, and the share of production under the tolling scheme accounted for 23,3 thousand tons. There was an increase in each direction of supply in 2020, however, the increase in sales of products of domestic manufacturers turned out to be more dynamic than that of foreign companies - even taking into account the rapid increase in the production of foreign drugs at the capacities of Russian enterprises (more than 25% on an annualized basis).
“The past year was the first when, according to the RSP of KhSZR, the volume of sales of domestic products on the Russian market surpassed the supply of drugs by multinational companies and exports from China. The share of domestic enterprises in 2020 accounted for 52% of the market. It should be understood that any state as a whole does not need to produce 100% of the goods it needs, but for the country's economy, dependence on imports in excess of a certain share in each industry creates a number of threats. In ours, in my opinion, the share of imported products should not exceed 30%. In the agro-industrial, military-industrial, fuel and energy complexes of Russia, dependence on imports is generally unacceptable, since the country's security, including food security, is tied to these sectors, - explains Vladimir Alginin. “For example, we have made great strides in creating various formulations of pesticides, but as for the synthesis of active ingredients for drugs, 85% of their total volume is now purchased from China. It is good that our company has launched its own plant there, we are starting to produce something in Russia as well - for the time being on an experimental basis, however, the RSP KhSZR, together with the Ministry of Industry, is already working out such possibilities in a number of positions. But if in the current conditions there is a shortage of one or another component, will a foreign company supply it primarily to the Russian market? No, first of all, she will provide her country, and a situation may arise that we will not be able to protect our own crops and will lose the harvest. "
In addition, Vladimir Alginin emphasizes, the profit, for which the producers work, is better to use in the domestic turnover than to direct these funds to stimulate the economy of another country. From this point of view, the second direction of development of import substitution is also important: today, two factories of large multinational companies are already being built in Russia, where pesticides will be produced. This became possible due to the introduction of various mechanisms to support domestic production. “This localization means both additional jobs and an increase in tax revenues. Thus, we not only have new enterprises and expanding the choice of products, but also increase the opportunities for the export of plant protection products - today there is enough production capacity in Russia both to meet the needs of domestic farmers and to enter the markets of other countries, ”notes Vladimir Alginin.
In addition, the improvement of the legislative framework should stimulate the development of import substitution in the plant protection industry. On June 29, 2021, Federal Law No. 522-FZ entered into force, with the help of which amendments were made to the main regulatory legal act regulating the agrochemical market - Federal Law No. 19.07.1997-FZ dated 109 "On the Safe Handling of Pesticides and agrochemicals ". The law empowers Rosselkhoznadzor with the functions of monitoring the circulation and use of pesticides and agrochemicals, as well as compliance with the requirements for pesticides and agrochemicals when imported into Russia. The Government of the Russian Federation has approved a list of 14 checkpoints, and only through them is it now allowed to import imported products, where they will undergo the necessary control. Thus, the niche of counterfeit and falsified pesticides, which, thanks to these measures, will not enter the Russian market, should ultimately also be occupied by high-quality domestic drugs.
The August company, as the largest Russian producer of CPPP, has developed a number of original and patented products for farmers. The creators of new drugs in "August" proceed from the fact that an optimal product is not only the right combination of active ingredients, but also an innovative formulation. Thus, the company's research center was the first in Russia to develop the fundamentals of the technology for the production of CCPP in the form of nano-formulations, which significantly increase the potential of active substances and increase their effectiveness. "August" seeks to create the best conditions for consumers both in terms of the production of the products themselves, and in terms of providing support to agricultural producers, not only selling drugs, but also providing technological support for their use. At the same time, the company's specialists receive feedback from farmers in order to form a line of the most promising and environmentally friendly products through understanding the needs of their customers, thus increasing their own market share and contributing to the implementation of the import substitution strategy along with other Russian producers of CPSP.