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Agriculture Industry In Russia

The agriculture Industry in Russia suffered a major setback following the disintegration of the Soviet Union in 1991. However, over the years the scenario has changed drastically. The establishment of Separate Russian federation and the change in the legal environment has played a crucial role in resurrection of agricultural industry in Russia. Today, agriculture industry in Russia is growing at a fast pace.

Though Russia is primarily an Industrial economy, the agriculture industry is huge. The agriculture industry in Russia accounts for about 6% of the total national GDP. Also, agriculture is one of the largest employment providing industries in Russia. Agriculture industry provides employment opportunities to more than 16% of the Russian population.

Although Russia is a snow-clad nation, it has a huge area of land meant for cultivation of crops. Russia has well over 23 million hectares of cultivable land. The most important crops grown in Russia are mostly grains. Grain cultivation occupies more than 50% of cultivable land area. The most dominant food crop cultivated across Russia is wheat. Wheat accounts for more than 70% of the total grain production in the country. Russian farmers cultivate wheat during both winter and spring seasons. Winter wheat is cultivated vastly in the Northern regions like Caucasus. Spring wheat is cultivated mainly in the Don Basin and in the middle Volga region. Thus, there is a great investment opportunity for foreign investors to investing in cultivation wheat. Investors can reap great advantage of cultivating wheat irrespective of seasonal condition.

The second largest cultivated crop in Russia is Barley. Every years Russia produces more than 10 million tones of barley, grown over 10 million hectare of land across Russia. This reflects that the productivity ratio of cultivable land is amazingly highly. Barley is mainly cultivated to be used as feed grains. However, in recent times the demand for production of barley has increased due to the expanding of brewery industry. Barley is the primary raw material for brewing. The expansion of brewery industry has increased the demand for malting barely. Currently more than 1.2 million tons of Barley is used by brewery industry every year. Thus, great opportunity lies for foreign investors to investing in producing barley in Russia.

Oats, Potatoes, Legumes are other major crops cultivated in Russia. Potato cultivation is huge. It is one of the most important food crops of Russia. Potatoes are grown extensively in Russia for consumption and for producing Vodka. Potatoes are grown mainly in colder regions.

In the recent times, cultivation of Beet has grown tremendously. Flax, another plant that grows well even in poor soil and cold condition is widely grown in Russia. Flax is grown extensively for it is a vital raw material for the textile industry. Besides, being an important source of raw material for textile industry, it is cultivated to extract linseed oil. The oil mixed with soya bean and sunflower oil is one of the important sources of vegetable oil. Flax is also in great demand recently for the expanding bio-fuel industry in Russia.

With the introduction of Private system in 1990, production of fruits and vegetables has increased. Crops like cabbages, tomatoes, carrots and apples are grown extensively.

Thus, foreign investors investing in Russian agriculture industry are in a win-win situation. Investors are set to get great returns on their investments.

 

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