Paris, France
September 11, 2008
Agricultural output is expected to
increase significantly in the Russian Federation and Ukraine
this year, as higher food prices have led to an expansion in
area planted in cereals, FAO said at a meeting here today.
Yields are also up in the two countries, and the UN agency
predicts bumper cereal crops in 2008.
Upside of high food prices
“This clearly shows that higher prices can be an opportunity for
the farming community,” said Charles Riemenschneider, Director
of FAO’s Investment Centre, at
the opening of a two-day meeting in Paris where representatives
of international financing institutions and donors active in
agriculture in Eastern and Central Europe, the Caucasus and
Central Asia will explore ways to unleash the region’s
agricultural potential.
The meeting is being sponsored by FAO, the European Bank for
Reconstruction and Development (EBRD) and the World Bank, and
hosted by Crédit Agricole.
An FAO-EBRD meeting in London in March highlighted significant
untapped agricultural production potential in Eastern Europe and
the Commonwealth of Independent States (CIS). The two
organizations said that as much as 13 million hectares could be
returned to production in the region.
According to FAO’s latest forecast, this potential is already
beginning to be realized, with aggregate output of wheat in the
European CIS countries in 2008 set to rise to more than 73
million tonnes, 13 percent above the good harvest of 2007.
This reflects good growing conditions in Russia and Ukraine, the
region’s two largest agricultural producers, and expansion in
the area sown with wheat in the region, which is estimated to
have increased by 2.4 million hectares to 33.8 million hectares.
In Russia alone, aggregate grain area (wheat, coarse grains,
rice) for the 2008 harvest is forecast at nearly 46 million
hectares – 2.6 million hectares more than in 2007, according to
FAO’s July Crop Prospects report.
Long-term investment needed
“In March, we discussed opportunities for enhancing agricultural
output, and we can see from these figures that benefits are
already materializing that could make a real difference on world
markets,” said Riemenschneider. “Both countries have significant
exportable cereal surpluses, but more long-term investment is
needed to ensure that this supply response is sustainable.”
"Current worldwide market conditions in agriculture remain a
cause for concern, and it is vital to increase global output,”
added EBRD Director of Agribusiness Gilles Mettetal. “The EBRD
has an important role to play in helping our region fully
exploit its potential and contribute to satisfying the growing
global demand for food. The Bank is committed to supporting much
needed long-term investments along the supply chain to build up
this potential in a sustainable way. This includes investments
not only in agroprocessing but also infrastructure, storage
capacity and logistics, where significant bottlenecks prevail."
Maximizing investment
This week’s meeting is being organized by EastAgri, a network of
funding institutions, including private banks, committed to
improving their agricultural and agribusiness investment
portfolio through information sharing.
EastAgri was founded by FAO, the EBRD and the World Bank and is
managed by FAO’s Investment Centre.
In addition to exploring potential opportunities for the Russian
Federation and Ukraine, the meeting will also feature
discussions on instruments for agricultural financing and risk
management in the region; adding value to regional agricultural
products through good agricultural practices, quality labels and
geographical indications; and participatory approaches to rural
development in the Western Balkans.
“By helping foster partnerships and collaboration between
public- and private-sector institutions investing in the region,
EastAgri plays a pivotal role in ensuring that these investments
complement each other and help improve performance throughout
the agrifood chain,” said Riemenschneider. |
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