Subsidy changes may curb Russia's farming successes

Subject

Challenges to sustaining agricultural production in Russia.

Significance

Russia has achieved a record grain harvest this year, maintaining its lead as the world's top wheat exporter. The livestock sector has recorded more modest growth, with pork output threatened by a swine flu outbreak and the dairy industry still waiting for a government assistance programme to materialise.

Impacts

• Import substitution will prompt the development of high-yield, non-genetically modified seed.
• Egypt and Iran will become increasingly important as grain importers.
• Food exports to China will gain momentum.
• The resumption of Turkish fruit and vegetable imports will not curb efforts to increase local production.