Below are some excerpts from the work on the export of agricultural raw materials and food from Russia.
The export of agricultural raw materials and food from Russia in 2019 amounted to USD 24 million, which is only slightly less than the figures for 741,4 (by 2018% or USD 0,6 million).
* - In this case, by agricultural raw materials and food we mean goods included in the product groups from 01 to 24, sections of the FEA of foreign economic activity from I to IV (see the reference code of the HS codes).
Section I - Live animals; animal products.
Section II - Products of plant origin.
Section III - Fats and oils of animal or vegetable origin and products of their breakdown; prepared edible fats; waxes of animal or vegetable origin.
Section IV - Prepared foods; alcoholic and non-alcoholic drinks and vinegar; tobacco and its substitutes (see reference book of HS codes).
In many product groups, Russia in 2019 significantly increased export deliveries. The stagnation of overall indicators is generally associated with a decline in grain exports (products according to the HS code 10). This in turn is due to low crop volumes in 2018, which had an impact on foreign trade performance in the first half of 2019.
According to the results of 2020, it is possible that, in dollar terms, the export of agricultural raw materials and food from the Russian Federation, due to a significant devaluation of the ruble, will also stagnate. However, in physical terms (in tons), shipments are expected to increase for most types of goods.
Currently, food imports in value terms still exceed their exports, but this gap is gradually narrowing. As expected in the AB Center, while maintaining the current dynamics, export deliveries of food may exceed import deliveries in the near future (in 2020-2022).
The role of agricultural products in the total volume of Russian exports in recent years has grown significantly.
The agro-industrial complex is one of the few areas of the real sector of the economy in the Russian Federation that is successfully developing and has products that are competitive in world markets. In 2016-2019 the share of food products in the total value of Russian exports, according to AB Center, is at 5,5-6,0%, while back in 2001-2013. did not exceed 3,4% (and in some years it was less than 2,0%).
Key articles on the export of agricultural raw materials and food from Russia in 2019:
1. Grain (products according to the HS code 10). These are mainly wheat, barley and corn. To a much lesser extent, rice, rye, buckwheat, and oats are exported from Russia. In 2019, grain exports from the Russian Federation in value terms amounted to 32,0% of total supplies of agricultural raw materials and food abroad (39 313,4 thousand tons in the amount of USD 7 908,5 million). In 2018, the share of grain in total deliveries was significantly higher and amounted to 42,0% (54 thousand tons in the amount of USD 814,5 million).
2. Oilseeds, vegetable oils, oilcakes, meal and other solid residues obtained by extraction of vegetable oils. These products form deliveries within the framework of such enlarged product groups (HS codes) as 12, 15 and 23, respectively. The total value of exports of the above goods, according to the calculations of Ab-Center, amounted to 5 687,6 million USD (23,0% of the total value of exports of agricultural raw materials and food). For comparison, in 2018, the indicators were at the levels of 4 million USD (516,8%).
3. Fish and Seafood (HS code 03). Export deliveries for this product group in 2019 are estimated at USD 4 million (698,9%). In 19,0, the value of export of fish and seafood from the Russian Federation amounted to USD 2018 million (4%).
Total TOP-3 of the aforementioned enlarged product groups, according to AB-Center estimates, provided in 2019 73,9% of all deliveries in value terms.
The following items can also be noted:
4. Chocolate and other confectionery containing cocoa (HS code 18) - 2,9%.
5. Finished products from grain cereals, flour, starch or milk; flour confectionery (HS code 19) - 2,8%.
6. Alcoholic and non-alcoholic drinks (HS code 22) - 2,5%
7. Meat (HS code 02) - 2,4%. Note that this area is actively developing. A year ago, the share of meat was 1,6%, in 2013 - only 0,2%.
8. Tobacco (HS code 24) - 2,2%.
9. Sugar (HS code 17) - 2,1%.
10. Vegetables (HS code 07) - 1,9%. In our opinion, the system of classification of goods according to the FEA does not always reflect the real picture.
In fact, the basis of deliveries under code 07 is peas and chickpeas, which are much closer to grain than to vegetables.
Nevertheless, in the classification of goods according to the HS codes, these goods are classified as vegetables. Export of vegetables directly (in the usual sense of the word) from the Russian Federation is at low levels.
Important! Foreign trade calculations for this material were prepared using the tools customs statistics database VEDLORD.
Author: Alexey Plugov, Ph.D.