18 February 2022 year passed in Krasnodar VI Agricultural Forum "Grain of Russia", which annually gathers key players in the Russian grain market: agricultural producers, processors, traders, exporters and carriers of grain, manufacturers of agricultural machinery, equipment and fertilizers, representatives of relevant government agencies.
The Forum was organized by the magazine "Agribusiness«.
Event Sponsors: Shimadzu, Bayer, RKT, Rostselmash, PJSC Rostelecom, Russian Railways.
I session The forum was dedicated to the problems and prospects of the grain market in Russia. He addressed the forum participants with a welcoming speech Valery Kochergindirector "Journal Agribusiness".
“Diversification according to the plan. Tons and money with production records" - the topic of the first report of the forum, which was delivered by Vitaly Shamaev, CEO "Agrospeaker".
He noted that export is a long-term marathon. Since April 2021, Russia has been participating in it "with a weight in a backpack in the form of export duties." According to the speaker, the fall in exports this season due to export duties is the beginning of the end. The development of production will begin in other countries that receive full market financing. If there is a simplification of technologies, then there will be cost savings, but it will not be possible to avoid crop losses in terms of quality and quantity. Rising supply from competitors will continue to push Russia out of the global arena. In the new season, futures scenarios show dollar prices no higher than current ones, and the cost of harvest will be 30-50% higher and logistics will rise in price. Russian export at last year's cost and current export duties is already stopped. The world market did not give a premium for Russian duties. GASC tenders show that this is a problem for Russian grain growers. World prices have gone into a new upper price range for a long time, and purchase prices have remained at the bottom under the pressure of export duties. It will ruin the farmers. Vitaly Shamaev concluded that export duties lead to a man-made crisis in the agricultural sector, which will result in the bankruptcy of farmers and the influx of new capital into the industry.
The topic of export of grain and products of its processing was continued by Mikhail Khanov, director of the Novorossiysk branch FSBI "Center for Grain Quality Assessment". He noted that the export of Russian grain and products of its processing as of February 10, 2022 amounted to 34,8 million tons in 2021/22 a.-x. year (-20% by 2020/21). The main direction of export in the current season is 17 countries of the Middle East - 10,2 million tons (-25%). Export of wheat in the current season amounted to 24,3 million tons (as of February 10.02.2022, 24), which is 2,8% less than last season. At the same time, the quality indicators of exported soft wheat from Russia are growing. Barley exports also fell to 10.02.2022 Mt (as of Feb 34, 2020), down 21% from 76/26,6. The export of grain and its products from the Southern Federal District accounts for 24% of Russian exports (2020 million tons, which is 21% less than the XNUMX/XNUMX season).
She spoke about the legislative regulation of the market for deep processing of grain Svetlana Maltseva, Head of the Department of Legal and Technical Regulation of the Association "Soyuzkrakhmal".
Deep processing of grain is the process of separating grain into individual fractions: natural biopolymer starch, vegetable proteins, fats and fiber. About 2,5 million tons of grain are spent annually on deep processing, while, according to preliminary data from Rosstat, the grain harvest in Russia in 2021 amounted to 120,7 million tons. Svetlana Maltseva spoke about the measures taken at the state level to promote the development of the industry, about the system of current legal acts, which includes state programs, legislative and by-laws of both the federal and regional levels. The Soyuzkrakhmal Association for the first time presented the all-Russian rating "Leaders of deep grain processing 2020-2021", developed with the support of the Agrobusiness Magazine. The rating was compiled according to the categories "Economic indicators of the enterprise", "Innovativeness of the enterprise", "Contribution of companies to the development of the industry". The rating will soon be available in the printed issue of the Agribusiness Journal (No. 2, 2022).
“The forum participants provided valuable analytical material that allows us to assess the development prospects and problems of the Russian grain complex and find ways to solve them. With regard to the market for deep processing of grain, it is important to note that the current support measures have given a tangible result in the development of the industry, but the large-scale growth of the industry is possible only if there is a separate industry development program for the industry, as well as a mechanism for centralized grain trading, in particular, the launch of a delivery futures for wheat and corn ”, Svetlana Maltseva comments on her participation in the forum.
Finished the first session Ivan Gulin, partner of RKT company, with a speech on the topic “Accumulator of agricultural land. Why the bankruptcy of agro-industrial complex participants is attractive for an investor”.
On specific cases of the Rostagro, Sinyavinskaya Poultry Farm and Russian Pork enterprises, the speaker spoke about the main reasons for the bankruptcy of agricultural organizations, among which the loss of an investor, financial difficulties and management errors stand out. However, difficult situations in agribusiness can be overcome with the help of such a tool as bankruptcy regulation. Using the example of Blago and Altaymyasoprom, which were consulted by RKT, Ivan Gulin showed how to increase the efficiency of asset use, optimize the company's organizational structure and develop ways out of the crisis. RKT helps potential investors find distressed assets according to specified parameters, assess their liquidity and develop a strategy for acquiring a bankrupt asset. Experts will help structure transactions (legal, financial, tax support) and implement a turnkey asset acquisition scheme, providing full support for the acquisition.
II session The forum was devoted to the problems of improving the quality of grain. Session opened Elena Alekperova, CEO LLC "Agrostat", with the report "Problems of protection of grain crops, including the storage and use of mineral fertilizers."
She spoke about the structure of the market for plant protection products of the main field crops in Russia and the distribution of this market by natural and economic regions. The reasons for the increase in the use of pesticides on cereal grains are the intensification of production, requiring an increase in the number of treatments; changing of the climate; redistribution of areas in favor of winter crops; export potential and world market conditions. Elena Alekperova and her agency made a rating of the active ingredients of the applied PPPs. The speaker also noted the importance of the problem of stock pests. The increase in production and the growth in exports of grain crops are an incentive for the development of the market for pest control stocks (57% of grain storage capacity is concentrated in agricultural producers). In conclusion, the General Director of Agrostat LLC spoke about the distribution of the main types of fertilizers.
The forum participants were told about effective methods of preserving grain from pests Alexander Shishikin, sales representative for professional pest control company Bayer.
According to the FAO, at least 10-15% of the world's stocks of grain and grain products are annually destroyed/damaged by harmful insects. The speaker spoke about the scheme of protection against pests of stocks in Russia and compared the methods of chemical pest control of stocks by fumigation (phosphines) and the method of treatment with K-Obiol, CE. This drug is a contact-intestinal, two-component, broad-spectrum insecticide for combating grain pests in unloaded warehouses, granaries, elevators before laying grain for storage, as well as for processing the area adjacent to them. The active ingredient is deltamethrin (2,5%) and the synergist piperonyl butoxide (22,5%). In the course of a comparative experiment, the use of K-Obiol against the quarantine kapr beetle showed high efficiency of the wet-contact treatment. On the third day of exposure, 80% death of kapr beetle larvae was observed, on the seventh day - 100% death. The rest of the preparations that participated in the comparative experiment did not reach 100% death of kara beetle larvae, the maximum result was 65%. The same results were shown for barn weevil and flour beetle.
She spoke about analytical equipment for determining safety and nutritional value indicators in grain, grain products, feed, compound feed and premixes. Tatyana Borisova, Leading Product Specialist, Liquid Chromatography, Leading Specialist in Applications of Analytical Equipment in the Food Industry of the Company Shimadzu.
She introduced the Shimadzu instrument line, which includes instruments for assessing the quality and safety of food products; a family of liquid chromatographs; liquid chromatograph solution – mycotoxin screening system; LC-20 Prominence system for PAH analysis; a line of chromatomass-spectrometers UFMS; gas chromatographs and chromato-mass spectrometers; AA-7000 atomic absorption spectrophotometer; spectrophotometers for analysis and many others. Representatives of this world famous Japanese company provide their users in Russia with comprehensive support, provide ready-made solutions for specific tasks, conduct seminars and master classes. In addition, new methods are developed for the tasks of users, and the users themselves undergo internships in German laboratories.
Session ended Nikolai Filipenko, Deputy Head Southern Interregional Department of Rosselkhoznadzor, with a presentation "Legislative requirements for the release of grain into circulation (declaration and quarantine certification)".
In accordance with the latest changes in legislation, new important trends have appeared in the work of the Rosselkhoznadzor. These include: a risk-based approach, the rejection of verification as the only measure, the priority of prevention, informatization, the departure from the "stick system" and the consideration of types of control. Speaking about the results of the work of the Southern Interregional Directorate of Rosselkhoznadzor in 2021, which is responsible for the regions of Krasnodar Territory, the Republic of Adygea and Crimea, as well as the city of Sevastopol, the speaker cited the following figures. 1507 orders and decisions were issued to terminate declarations of conformity, for a total grain volume of 2,183 million tons. 401 quarantine certificates were issued for more than 295 million tons of grain. To date, 10 enterprises have been registered that carry out activities to deprive quarantine objects of viability. 27 cases of infection (for more than 3 million tons of grain) were detected for four types of quarantine objects (846 case of tripartite ragweed, 1,2 cases of rose bitterling, 1 cases of dodder and 8 cases of ragweed).
III session Forum was devoted to the digitalization of the grain market. Session opened Maxim Petrunin, Project Manager of the Department of Coordination and Business Development Rosagroleasing, who spoke about the company's digital services for the technical modernization of the agro-industrial complex and the convenience of customers.
Today, Rosagroleasing provides the largest agricultural machinery marketplace in Russia, which has more than 450 suppliers of 22000 items of machinery and equipment. The farmer can use the various functions of the digital personal account and mobile application. The marketplace is constantly being expanded with additional functionality up to the possibility of conducting a transaction entirely in digital format. The company's benefits also include pre-approved funding limits, the ability to combine with federal and regional support measures, as well as special conditions for members of industry unions and associations.
They told about the system for monitoring the movement of crops and traceability of products online (pictured at the beginning of the news) Denis Zhukovsky, director of the agro-industrial complex of the Department for work with corporate customers PJSC "Rostelecom"and Gennady Falkovich, Head of System Integration Department "Geyser-Telecom".
An important task of the management of modern agricultural production is to ensure maximum traceability of the movement of finished products at each phase of the production process from the fields to the factory. The resulting effect of the implementation of the digital solution proposed by Rostelecom is an increase in harvesting from the fields by 20%, a reduction in losses during harvesting and transportation by 30%, an increase in the efficiency of agricultural machinery and a reduction in costs up to 20%. The system collects digital data for analysis and planning of work, reduces the influence of the "human factor", increases the speed of harvesting. Currently, the system has already been installed on more than 850 units. equipment in five regions on five types of equipment. It is possible to transfer information to the FSIS "Grain".
Vladimir Uvaydov, Head of the Competence Development Division of the Organic and Green Products Development Department "Roskachestvo", spoke about the experience of digital protection of organic grain.
The share of organic grain in the Russian market of organic products is currently estimated at 25%. Digital protection of the market is carried out at three levels: the Register of Organic Producers of the Ministry of Agriculture of the Russian Federation, a QR code on products with the transition to a single register, and a special Organic mark approved by order of the Ministry of Agriculture of the Russian Federation. With the help of these tools, farmers receive additional marketing benefits, including in terms of pricing policy and promotion through exhibitions / fairs, as well as placing products on separate shelves in the Auchan, Azbuka Vkusa, Globus networks. The speaker recalled that the minimum content of organic agricultural ingredients in finished organic products is 95%, while the remaining 5% is subject to strict rules and restrictions.
"Autonomous farm: the economics of production in unmanned mode" - the topic of the report Oleg Alexandrov, director of innovation Rostselmash.
The speaker presented the current digital solutions of Rostselmash, which are already available to users of telemetry and machine-to-machine interaction systems, auto-driving, process automation, and security and emergency prevention systems. Agrotronic™ is the core of the ecosystem of digital solutions, a place for aggregation and analysis of all platform information. Thanks to the functions of automatic control, analysis and accounting implemented with the help of Agrotronic™, the user receives an economic and managerial effect. Ensuring competent fleet logistics leads to cost savings on fuel and lubricants and wages, control of operation parameters of units and assemblies leads to increased productivity, and registration of refueling and unloading facts leads to workflow optimization. Agrotronics collects information from such services and solutions as PCM Router, PCM Agrotronic Pilot 2.0, PCM Adaptive Cruise Control, PCM Yield Map, PCM Night Vision, PCM Face ID, PCM Smart Tag, PCM Transport ID.
IV session Forum was dedicated to the problems and ways of selling grain. Session opened Mark Sultanyan, Deputy Head of the North Caucasus Directorate for the management of the terminal and warehouse complex Russian Railways OJSC, who spoke about the organization of transshipment of grain cargo at the company's terminals.
Grain logistics of the North Caucasus Directorate is directed to the port of Novorossiysk and includes accumulation at grain elevators with subsequent transportation to the seaport. Russian Railways provides all necessary loading and unloading services; provides storage of goods in warehouses, incl. Prefabricated; produces containerization of grain crops and invests in the infrastructure of cargo terminals with its further operation, the Speaker separately focused on the development of shipments of grain cargo in containers, which is facilitated by the development of the infrastructure of container cargo yards, the introduction of new mechanisms and methods for handling containers, the development of a network of terminals and an increase in the number and implementation new modifications of containers.
He told the forum participants about the grain market in Russia in the 2021/22 season, export shipments and the domestic market Igor Pavensky, head analytical center "Rusagrotrans".
The preliminary forecast for grain harvest in 2022 is about 128 million tons, including wheat - 81,4 million tons and more - up to 83 million tons, which is the third result after the high 2017 and 2020. In 2022, in the absence of "force majeure", a significant increase in the harvest is expected in the Volga and Central Federal Districts, and in the South it will remain at a record level of the current year. Against the backdrop of a decrease in the harvest and the effect of export duties, wheat exports from Russia are lower than last season and are estimated to reach a value of about 30 million tons, but due to the growth of exports to the EAEU and large volumes in March-June, they can reach 33,1 million tons In the current season, there is an increase in demand for soft wheat from importing countries in North Africa, the Middle East and Southeast Asia, primarily from drought-affected Iran, Turkey, Algeria and Morocco. In total, for the above countries, the import potential in the 2021/22 season is estimated at 80,6 million tons against 69 million tons in 2019/20 (+11,6 million tons).
Speaking about grain prices, Igor Pavensky noted that export prices for Russian wheat 12,5% for March delivery are $315-317/t. Prices for wheat (class 4, 12,5% protein) in deep water ports are 15900-16000 rubles/ton without VAT. Domestic market prices are declining in the regions of the South and, to a lesser extent, the Center. In Siberia, prices have strengthened in recent weeks due to strong demand from Kazakhstan. If prices for new crops drop to around $285/t for delivery in August 2022 at the current exchange rate and duty around $70/t, the CPT price could be just over RUB 15/t excluding VAT.
He spoke about state support measures for grain exporters Vladislav Esin, head of the Krasnodar representative office JSC Russian Export Center.
Speaking about financial support for exporters, he noted the following instruments. Pre-export financing allows you to pay for the costs of an export contract, including the purchase of raw materials and materials, payment for energy resources, payment of wages (no more than 20%), transport and customs costs, insurance premium financing. With the help of export factoring (without the right of recourse), accounts receivable under an export contract are financed up to 100% of the planned receivables of a foreign buyer. A VAT refund guarantee is a way to ensure that the exporter (guarantee principal) properly fulfills its obligations to refund the amounts of tax that have been unduly credited to it from the budget. Thus, the exporter is given the opportunity not to withdraw money from the economic turnover in the form of VAT, subject to offset in accordance with the current legislation of the Russian Federation.
Ended the session Elena Ksenofontova, chairman of the mediation committee KCO "Opora Rossii", who spoke about mediation as a way to resolve interregional and international disputes over supply contracts.
At the VI All-Russian Congress of Judges, Russian President Vladimir Putin stressed that it is necessary to develop in every possible way the methods that have proven themselves in the world. “I mean pre-trial and judicial settlement of disputes through negotiations and settlement agreements, as well as alternative ways of resolving conflicts.” The activities of the mediation committee are aimed at developing conciliation procedures in the Russian Federation in order to develop civil society and legal institutions to resolve disputes and conflicts through mediation, improve the ethics of business relations, and reduce the burden on courts and government agencies. The main task of the mediator is to resolve the situation peacefully and prevent the case from going to court. However, if the case is already in court, then mediation is possible at any stage. Moreover, if a settlement agreement is concluded, the claim is abandoned or the claim is recognized by the defendant, the claimant will be able to return part of the state duty: from 30 to 70%, depending on the stage at which the parties to the claim came to an agreement. If the parties settled the dispute before the court and certified the mediation agreement with a notary, then in case of its non-fulfillment, it will be possible not to file a lawsuit in court. Such a mediation agreement will automatically become an executive document that can be submitted to bailiffs.