Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

Eastern breadbasket obstructs its market and growth opportunities

16.05.2014

IAMO Policy Brief 16 publishes latest findings

With almost 100 million tons per annum and a combined share of nearly 15 per cent in global wheat production Russia, Ukraine and Kazakhstan rank among the major grain nations. The enormous land and yield potentials of those countries have earned them considerable importance for world grain markets and thus global food supplies.

Their growth opportunities, however, are severely inhibited not only by the current turmoil after the Russian-Ukrainian conflict but notably by problematic trade and market policies, a low level of production reserve usage and significant deficits in marketing infrastructures. In Policy Brief 16 IAMO researchers illustrate by means of their findings which production and market potentials can be expected in the grain industries of Russia, Ukraine and Kazakhstan and which obstacles the Eastern agricultural producers are facing.

In the past few years Russia, Ukraine and Kazakhstan have established themselves as key players in the international grain market on the strength of positive developments in wheat production. Their per-hectare yields, however, are still less than half of average yields on Western European farmland. Current IAMO calculations indicate that appropriate measures, such as recultivation of recently set-aside land could increase wheat production in Russia alone by up to 50 million tons per annum. Yet, the mobilization of such production and export potentials decisively depends on the future production and competitive conditions as well as political framework conditions.

Russia, Ukraine and Kazakhstan intervened in grain markets over the last decade with a series of export restrictions in response to rising world market grain prices. Such state interventions led to considerable market uncertainty, the virtual cessation of exports and a malfunction of controlled price formation. The IAMO researchers point out that such populistic trade and market policies will reduce investment incentives in the grain industry in the medium and long term and thus counteract market functionality.

To this adds that productivity and yield potentials in transition countries are exhausted only slightly or with large regional differences due to persistent productivity gaps. Investment and management deficits are hampering farm growth and efficient utilization of entrepreneurial resources. There is also a massive investment and modernization deficits in marketing infrastructures, such as warehousing, inland transport and port capacities, which obstructs market transactions and export opportunities.

‘In view of these circumstances, it cannot be expected that Russia, Ukraine and Kazakhstan will be capable of realizing their market and growth potentials in the foreseeable future. Urgent prerequisite for their realization is prioritization of market-conforming and export-friendly policies as well as investments into spatial and farm infrastructures’, explains IAMO director Thomas Glauben.

The IAMO Policy Brief 16 titled ‘Eastern breadbasket obstructs its market and growth opportunities’ is available for downloading free of charge in English, German and Russian languages at: www.iamo.de/publikation/policybriefs

IAMO Policy Briefs

The publication series IAMO Policy Brief is published at irregular intervals and provides a platform for research findings and outcomes of the Institute of Agricultural Development in Central and Eastern Europe (IAMO) with social relevance to be communicated accessibly and entertainingly to a broad audience. Key target groups include political decision-makers, mass media representatives and the general public.

About IAMO

The Leibniz Institute of Agricultural Development in Transition Economies (IAMO) analyses economic, social and political processes of change in the agricultural and food sector, and in rural areas. The geographic focus covers the enlarging EU, transition regions of Central, Eastern and South Eastern Europe, as well as Central and Eastern Asia. IAMO is making a contribution towards enhancing understanding of institutional, structural and technological changes. Moreover, IAMO is studying the resulting impacts on the agricultural and food sector as well as the living conditions of rural populations. The outcomes of our work are used to derive and analyze strategies and options for enterprises, agricultural markets and politics. Since its foundation in 1994, IAMO has been part of the Leibniz Association, a German community of independent research institutes.

Please note that since the beginning of this year the Leibniz Institute of Agricultural Development in Central and Eastern Europe is renamed Leibniz Institute of Agricultural Development in Transition Economies. The acronym IAMO is still valid.

Media contact

Daniela Schimming
Public Relations
Tel.: +49 345 2928-330
Fax: +49 345 2928-499
presse@iamo.de
www.iamo.de

Daniela Schimming | idw - Informationsdienst Wissenschaft

Further reports about: Agricultural IAMO Leibniz-Institut deficits global wheat production

More articles from Agricultural and Forestry Science:

nachricht New data unearths pesticide peril in beehives
21.04.2017 | Cornell University

nachricht New rice fights off drought
04.04.2017 | RIKEN

All articles from Agricultural and Forestry Science >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Making lightweight construction suitable for series production

More and more automobile companies are focusing on body parts made of carbon fiber reinforced plastics (CFRP). However, manufacturing and repair costs must be further reduced in order to make CFRP more economical in use. Together with the Volkswagen AG and five other partners in the project HolQueSt 3D, the Laser Zentrum Hannover e.V. (LZH) has developed laser processes for the automatic trimming, drilling and repair of three-dimensional components.

Automated manufacturing processes are the basis for ultimately establishing the series production of CFRP components. In the project HolQueSt 3D, the LZH has...

Im Focus: Wonder material? Novel nanotube structure strengthens thin films for flexible electronics

Reflecting the structure of composites found in nature and the ancient world, researchers at the University of Illinois at Urbana-Champaign have synthesized thin carbon nanotube (CNT) textiles that exhibit both high electrical conductivity and a level of toughness that is about fifty times higher than copper films, currently used in electronics.

"The structural robustness of thin metal films has significant importance for the reliable operation of smart skin and flexible electronics including...

Im Focus: Deep inside Galaxy M87

The nearby, giant radio galaxy M87 hosts a supermassive black hole (BH) and is well-known for its bright jet dominating the spectrum over ten orders of magnitude in frequency. Due to its proximity, jet prominence, and the large black hole mass, M87 is the best laboratory for investigating the formation, acceleration, and collimation of relativistic jets. A research team led by Silke Britzen from the Max Planck Institute for Radio Astronomy in Bonn, Germany, has found strong indication for turbulent processes connecting the accretion disk and the jet of that galaxy providing insights into the longstanding problem of the origin of astrophysical jets.

Supermassive black holes form some of the most enigmatic phenomena in astrophysics. Their enormous energy output is supposed to be generated by the...

Im Focus: A Quantum Low Pass for Photons

Physicists in Garching observe novel quantum effect that limits the number of emitted photons.

The probability to find a certain number of photons inside a laser pulse usually corresponds to a classical distribution of independent events, the so-called...

Im Focus: Microprocessors based on a layer of just three atoms

Microprocessors based on atomically thin materials hold the promise of the evolution of traditional processors as well as new applications in the field of flexible electronics. Now, a TU Wien research team led by Thomas Müller has made a breakthrough in this field as part of an ongoing research project.

Two-dimensional materials, or 2D materials for short, are extremely versatile, although – or often more precisely because – they are made up of just one or a...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Expert meeting “Health Business Connect” will connect international medical technology companies

20.04.2017 | Event News

Wenn der Computer das Gehirn austrickst

18.04.2017 | Event News

7th International Conference on Crystalline Silicon Photovoltaics in Freiburg on April 3-5, 2017

03.04.2017 | Event News

 
Latest News

DGIST develops 20 times faster biosensor

24.04.2017 | Physics and Astronomy

Nanoimprinted hyperlens array: Paving the way for practical super-resolution imaging

24.04.2017 | Materials Sciences

Atomic-level motion may drive bacteria's ability to evade immune system defenses

24.04.2017 | Life Sciences

VideoLinks
B2B-VideoLinks
More VideoLinks >>>