Russia’s excess grain headache
Published: 24 October, 2009, 10:12
Edited: 02 November, 2009, 04:51
Russia’s high yield of grain crops this year are giving managers of storage facilities a headache. Low prices are keeping traders from selling grain, meaning there's too much stock.
Count Cash, Well, an evil capitalist would say that if you have more grain than people are willing to buy than you have too many farms and so some of the labor and resources presently dedicated to them should be redirected elsewhere to feed needs that are not likewise fully satiated. However, it seems as though most first world countries engage in the practice of subsidies; but then they get annoyed at the third world when it likewise practices subsidies; the lack of which in turn encourages them towards cash crops when they aren't even able to feed all of their own citizens. After all, since the foreigners are wealthier it is more lucrative to serve them than the starving people of your own country. Meanwhile, first world crops are kept competitive by the extant subsidies which the first world, in applying its double standard, refuses to give up. Many first world countries, including I believe the US, are not actually growing enough food to feed themselves at moment. However, they are rich enough to import food, and as a consequence they don't starve. The problem with many African countries is that they don't produce enough food to support themselves adequately, they don't have enough money to import it or even keep all that they grow, and their economies are unable to grow rapidly enough to actually grow per capita since their populations keep going up. So, they do starve...You can soften the blow temporarily by sending them some food, but basically they need to grow fast enough that, despite the population growth, the average person becomes wealthy enough that they aren't inclined to have too many children. So long as population continues to rise rapidly the problem will get steadily worse. I agree that basically, the IMF model has failed. I don't know to what extent that was cruelly predicted and encouraged anyway, but I think we are going to see a new and better framework supplant it.
William of the USA, I watched a young African American woman use "WIC" food stamps to purchase 8 cans of Similac(Baby Food) at a cost of $236.00 to the American Taxpayer. What a country! She was too busy to answer the cashier because she was talkking on her "I-Phone" through her "Blue Tooth" wireless ear phone only to proceed to her brand NEW Cadillac Escalade! What a country! Then I went to the CVS pharmacy to pick up my medication that I require the rest of my life because of a "war" injury only to see a Mexican with 6 kids getting FREE prescriptions! I do not think this happens in Putin's Russia! I hope and pray that Putin uses his advice from his FSB on the "new" military doctrine and uses nuclear bombs to wipe out America and start off Moscow-South with a "planned" society! In closing, America SUCKS!
@ William of the USA China actually kept the grain within itself to prevent problems. The US does not grow enough food to feed its own, you are correct. We do have a system for sending aid, however, but we send it through our economy first, as bad as that sounds. Russia probably does something similar now. I'm not for sure. First World has a tendency to bribe Third World serving various agendas and that's the only way they get a "free meal" that comes with a different price. That helped the US to win the Cold War. Afterwards, both the Soviet Union and America kind'of abandoned Africa. Both are responsible for it, but I don't think the Soviet Union had much of a choice; they might have anyway, but maybe not. It looks like the Soviets had more agendas there with resources and ideology while the US was trying to throw them off in order to collapse them. I am not defending the Soviet Union, just saying.
Is this good or bad? Are there any people in Russia who are undernourished or hungry? I thought so. Feed the Russian people who need it.
In Russia, like any other countries there are people hard up. But there is no systematic failure as there is in Africa. The comparison is totally invalid. The point with the Krasnodar facility is that they are really playing the commodity market, betting on a better futures price, this is exactly what happens in the oil business now with tankers circling in the sea, waiting for a better future price. Now the issue of supply and demand is not strictly true, as the African market has pent up demand, which is a growth opportunity, it however does not have the resources to be part of the market. So basically the systematic failure in Africa is killing people and it is inhibiting market growth. So the question is how do we enable the African market, well dealing with warlords by multinationals hasn't done the trick, neither has trying to impose conditions on Africa done the trick, indeed using Africa has achieved nothing more than using can ever do, we are extracting what we want and dumping the container. Now on a scale of 1-10 is spending all our effort on a political game of chess on a missile defence as productive as enabling a African market. Which will bring more peace and justice to the world in the end? Would it be better not to attach political goals and agendas on Africa and simply get businesses running for the people, with listening instead of telling. Wouldn't it be better to protect the vunerable, by ensuring ownership for them in strategic businesses. Africa is a tale of evil exploitation, it is a testament to fine words and evil deeds. Don't preach values, don't preach rights, don't preach justice, when you have no stomach to help a weaker person, because preaching is tiresome, while straving is fatal! I put the life of anyone above a futures market, shouldn't everyone.
"The US does not grow enough food to feed its own, you are correct." No!!! Are you kidding me? USA exports more grain than any country, 10+% of pork and poultry... maybe more than 10% of the US beef production. Where do you guys get your facts?
I need a source for the price at the local level (farm, local grainery, feed store, etc) of corn, feed wheat, soybean meal, rye & barley in the Krasnodar and Kastroma areas of Russia. Can any one direct me to source for pricing? Thanks!










It's good to see our output at high levels, all be it that there has been an actual reduction this year. It is also true that the agricultural industry is going through transition and has to be helped to modernize and improve productivity. Leaving it to a hard landing of a total free market would collapse it, and we have seen what a mess a chaotic transition is for Russia, it simply doesn't work. However, what about thinking in broader terms. Having large stocks of grain, while other peoples in Africa are starving, is a little obscene, so why can't we enable some of this surplus bought at reasonable prices to flow to some of these starving people. We are doing it now to a small degree, but why not increase it to eat into more of the surplus. Of course this needs to be coupled with a strategy of teaching them to fish tomorrow, but a dead fisherman has no tomorrow. But a comprehensive Russian delivered program with food and the establishment of viable sustainable models, including security, nust be a way that we can enable a better life for future African people. We need help people move higher, not be part of the exploitative model of them. This should become the Russian way. As the biggest country, we must act like it and help smaller and less fortunate nations, find their feet and stand. Africa has had a bad deal, raped by speculators. Russia needs help them stand with strong legs. Because we don't stand with bowed legs. It will build a better world economy in the end, which is good for everyone.