The interventionism of the Russian Government.
The productive capacity in primary sector has been reduced nearly 50% since 1991. This decline has been accompanied by the reduction of the state subsidies. The low productivity of the sector is due to the inefficiency of the reforms undertaken to redirect it towards a market economy.
The structure of land ownership is as follows: 79.8% of public property (state or local), 18.4% of individual private property and 0.5% belonging to legal persons (agricultural enterprises). The proportion of people employed in agriculture is about 9.8%. The main crops are wheat and other cereals (over 50% of the total arable land), fodder (about 30%) and industrial crops (8-9%). Winter wheat is grown in the North Caucasus region, while spring wheat is grown in the Volga region and southwestern Siberia. In general, agriculture is affected by chronic underfunding and equipment. At the moment, foreign investment in the sector is hampered by the inability of foreign firms acquire land for agricultural use, although leases of long duration are allowed.
Russia is one of the largest exporters of wheat worldwide, with domestic demand of about 77 million tons annually. The instability of the sector and the heavy dependence on rains make us see larges fluctuations in its prices.
Faced with drought or crisis, the Russian government intervenes highly authoritarian prohibiting the export of grain, a decision that involves an increase in world cereal prices and difficulties in countries like Egypt, which depend on cereal imports 50% of Russia.
As for the livestock sector, Russia has relatively little importance and its main production is focused on dairy products (cheese, butter and derivatives). Russia has been, in recent years, deficient in both cattle and poultry, which have increased imports from several countries following the increase in domestic demand. Lithuania, Germany and Denmark are the main suppliers of pig heads; Germany and Serbia goats and sheep and Hungary Netherlands and France broilers. The regions of Russia with the largest cattle ranches are in the south, especially the regions of Krasnodar, Caucasus, Volga and southern Siberia. The production of poultry meat has increased at a rate of 17% in recent years.