Business Monitor International | 10 September 2009

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The Moscow Times, quoting Reuters, reported in March 2009 that Russian grain processor Pava is looking for potential foreign investors to help triple the amount of farmland under its control. A company director was quoted as saying that the firm hopes for a tenfold increase in grain production by restoring fallow land in Siberia. US agribusiness giant Cargill's new feed mill, reportedly capable of turning out 250,000 tonnes of feed a year, will complement Russia's quest to become self-sufficient in livestock production. According to the company, the mill will produce nutritional feed and value-added ingredients, lowering costs for producers having to import such inputs. Cargill has a growing number of feed plants in this part of the world.

Agricultural expansion could substantially benefit from Putin's latest land reform legislation which means that for the first time since 1917 Russia will permit the trading of national farmlands. This could go a long way towards attracting the types of investment that can help Russia fulfil its vision of being a major global agricultural player. The land reform could lead to over 400mn hectares of crop acreage being sold.