Agribusiness is one of the most important sectors of economy, it employs over one-third of the world's population. Agribusiness development is a necessary trigger for a broader, sustainable economic development for most countries as it stimulates self-sustaining growth in two principal ways - through rising productivity it increases the incomes of farmers, and it releases labor from subsistence farming that can be employed in manufacturing or service activities.
Russia has more than 200,000 farm holdings and small agricultural businesses, which account for up to 50% of Russia’s agricultural production.
President of the Russian Federation Vladimir Putin, delivering his annual Address 2015 to the Federal Assembly, stated that the agriculture sector sets a positive example in the sense that a decade ago Russia imported almost half of our food products and critically depended on imports, whereas now Russia has joined the exporters’ club. In 2014, Russia’s agricultural exports totaled almost $20 billion.
2015 Agribusiness development
Against a high benchmark last year, production growth across the sector is expected to slow down in 2016 to 102-102.5%.
In 2015, in the framework of the State Program implementation government allocated RUB 222.3 billion, in 2016 it is planned to allocate RUB 237 billion, in 2017 – RUB 300.2 billion.
Total expenditures of the federal budget for the State Program implementation increased by 47.9% and may exceed RUB 2.1 trillion, including additional support in the amount of over RUB 680 billion until 2020, primarily aimed at agribusiness import substitution and exports accumulation.
Source: Government of Russia; Ministry of Agriculture of Russia; the Bank information.