ANDREY TSYGANOV: WE SUCCEEDED IN PROTECTING FOOD SAFETY IN RUSSIA

15-04-2019 | 12:44

It was facilitated by determining strategic goals by the national leadership and a coherent sequence of actions

 

On 10 April 2019, Deputy Head of FAS took part in the XX April International Academic Conference on Social-and-Economic Development at High School of Economics.

 

Speaking at the session on “the Strategy for Russian presence of the world food markets”, he said that consistent state policy succeeded in achieving an essential strategic goal – protecting national food security.

 

Russian agro-industrial complex is at the stage of conquering international global markets. This is the rationale of the State Programme for developing agriculture and regulating the markets of agricultural products, raw materials and food, the Federal Research-and-Technological Programme for Agricultural Development in 2017 – 2025, as well as the “International Cooperation and Export” National Project, which is executed to fulfill the “May” Presidential Orders. The project goal is to reach US$ 45 billion export of products of the agro-industrial complex by 2024.

 

“This strategic goal requires using multiple interrelated decisions and tools, particularly, in financing the agro-industrial complex, and large multi-sided projects. At the same time, numerous risks should be taken into account – from objective climate factors to political threats associated with different restrictive regimes”, explained Andrey Tsyganov.

 

“When we talk about the goal of Russia entering world food markets, we mean not only launching particular goods on these markets, but also gaining a share of added value in the product chain for extended reproduction of Russian agro-industrial complex. And the further from a field or a farm where the goods were produced we can trace what’s happening with them and influence the price and sales channels, the better it is for Russian economy”, emphasized the speaker.

 

According to Deputy Head of FAS, another key objective of Russian agro-industrial complex is infrastructure. The National Projects in work are aimed, in particular, exactly at further infrastructure development:

 

“The aim is to promptly and properly get together consignments of particular goods, deliver then to the end-consumption point cheaply and without delay, to safeguard its quality and market pricing. Regarding export, goods should move barrier-free not only inside Russia but also via international transport corridors. Therefore, infrastructure and logistics development are becoming international and intermodal”.

 

Discussing and important aspect of reducing Russia’s dependence on behaviour of global players, Andrey Tsyganov underlined the importance of providing selection and genetic materials for Russian agro-industrial complex.

 

He stated: “Until it is purchased predominantly abroad, once can’t talk about any independence and sustainable penetration of domestic agro-industrial sector to the international markets. It is for a reason that the President of the Russian Federation set the task of reducing dependence of Russian agro-industrial complex from foreign material in the Order on the main directions of the state policy towards developing competition. A significant part of the Road Map [1] is aimed exactly at eliminating this dangerous problem”.

 

Practical mechanisms for solve the task are developed, particularly, with involvement of High School of Economics. For example, the Technology Transfer Centre, which efforts to control technology transfer was specified by FAS as one of the conditions for approving the “Bayer-Monsanto” merger.

 

Summing up, Andrey Tsyganov highlighted that at the moment domestic agricultural producers to a considerable extent depend on the market power of those, from whom they purchase all necessary stuff (fertilizers, technological solutions etc.) as well as those to whom they sell the produced goods.

 

He emphasized: “Obviously, certain measures are required to consolidate and level off the market power and the bargaining position of the Russian agro-industrial complex the opposing retail chains and transnational corporations. It is one of our most important tasks, particularly, under the frame of the modern competition policy”.

 

[1] Action Plan (an integrated Road Map_ for developing competition in 2018 – 2020 in the sectors of the economy of the Russian Federation, approved by No. 1697-r Order of the Government of the Russian Federation of 16 August 2018.

 



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