Russian agriculture enjoys another year of growth

While agricultural output grew almost every year over the past decade, 2020 was no exception even if growth slowed down to about 1.5 %. Crop farming, which accounts for well over half of agricultural output, increased significantly slower than at nearly any time in recent history. Grain harvests overall, however, were up by 10 % last year, even approaching the record harvests of 2017. In contrast, production of certain crops such as potatoes declined considerably, and sugar beet production collapsed to levels not seen in many years. That was due to smaller areas under cultivation and smaller harvests per area. The steady growth of livestock production continued last year.

In particular, agricultural corporations, cooperatives and organisations have succeeded in rapidly ramping up production. They did so yet again last year and account now for about 55 % of Russia’s crop production, and over 60 % of livestock production. The fastest growth, however, has been posted by private farmers. Their operations focus on crop farming, and their share of total crop production nationally has gradually risen to more than 20 %. Production of household farms on the other hand has contracted gradually over the past decade. Even so, household farms still account for nearly a quarter of crop production (and about two-thirds of potato production and over half of vegetables) not to mention almost a third of livestock production.

Russian agricultural production has risen for many years

Sources: Rosstat and BOFIT.