Mineral and Agricultural Commodities in Russia

The Russian Federation is the largest country in the world with a total territory of more than 17 million square kilometers, which is almost twice the size of the United States. However, with little over 142 million citizens, Russia ranks tenth in terms of population given that most of its territory is an uninhabited Siberian and Arctic tundra. At the same time, throughout its vast Eurasian land mass, Russia is rich in natural resources, such as lumber, timber, oil, natural gas, minerals, and coal. Furthermore, a large amount of the national economy is dependent on these fossil fuels, which are exploited by both state owned and privately held multinational companies. Therefore, Russia’s economy has experienced slow and even negative growth in recent years, due largely to the low prices that have dominated international commodity prices.

In terms of trade, Russia’s most important partners are the European Union, China, and eastern European countries, including Belarus and Turkey. Russia’s economy is one of the largest and most important in the world, with an annual gross domestic product (GDP) of approximately US$3.7 trillion. Meanwhile, the national economy is divided into 5% agriculture, 33% manufacturing, and 62% services. Nevertheless, the agricultural industry employs an average of 9% of the total labor force, while manufacturing employs another 28% and services employ 63%. Within the agricultural industry, Russia’s main products are grain, sugar beets, sunflower seeds, vegetables, fruits, beef, and milk.

Mineral and Agricultural Commodities in Russia

Amongst Russia’s leading agricultural commodity crops is wheat, with a total harvest area that has grown from 23.6 million hectares during 2014/15 to 25.6 million in 2015/16, and is expected to reach 27 million hectares for 2016/17. Simultaneously, Russian wheat production has increased from approximately 59 million metric tons throughout 2014/15 to an expected total of 73 million metric tons for 2016/17. In terms of trade, Russia is a net exporter of wheat with 23 million metric tons sold during 2014/15, approximately 26 million exported in 2015/16, and a forecast of 29 million metric tons of wheat for 2016/17. Furthermore, the domestic market in Russia for both animal feed and food has consumed an annual average of 37 million metric tons of wheat throughout the last several years.

Another major commodity crop cultivated in Russia is barley. In recent years, Russia has devoted an annual average of more than 8 million hectares of land to barley cultivation. Russia’s annual barley output has gone from 20 million metric tons during 2014/15 to 17 million in 2015/16, and is expected to reach 18 million metric tons of barley for 2016/17. In terms of trade, Russia’s barley imports are minimal, averaging less than 100.000 metric tons annually. Meanwhile, Russia is a net exporter of barley, selling approximately 5.5 million metric tons throughout 2014/15, followed by some 4 million in 2015/16, and is expected to export another 4 million metric tons of barley during 2016/17.

Finally, corn production in Russia accounts for approximately 3 million hectares of land devoted to this crop every year. During 2014/15, Russia produced more than 11 million metric tons of corn, followed by approximately 13 million metric tons in 2015/16. For the 2016/17 harvest season, Russia is expected to yield some 15 million metric tons of corn.

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