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Russia squeezing U.S. out as agricultural superpower

Staff Writer |
The U.S. is being pushed out of the grain market as Russia's bumper wheat harvest has dragged down prices to record lows. Russian agricultural exports are booming thanks to a weaker national currency and massive investment.

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“We are pushing America aside in some markets, and we are satisfied with this,” said Russia’s Agriculture Minister Aleksandr Tkachev.

This year Russian farmers are expected to harvest the biggest crop in over a century. Russia will produce at least 83 million tons of wheat in the current growing season, according to estimates by The Wall Street Journal.

Lower prices and close proximity to large markets gives Russia an advantage, according to the General Director of the Institute for Agricultural Market Studies Dmitry Rylko.

“A relatively weak ruble is good for the Russian wheat market. We see either gradual or rapid growth for our exports,” the expert told RT.

However, the figure announced by the Russian government earlier this year is much more impressive. The Moscow-based grain consultant ProZerno estimates a harvest of over 130 million tons. It is 2.6 percent more than the previous record set in 1978 before the Soviet-Afghan War.

“Today our task is to set reasonable prices across the country. The grain crop of 130 million tons, there is more to come. It may reach up to 200 million tons. The main thing is to find new sales markets,” said Tkachev.


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