Euroseeds, the association of European seed market participants, wrote a letter to Prime Minister Mikhail Mishustin outlining the risks of further work in Russia. In this respect informs Kommersant newspaper.
The association explained that the risks are associated with the new requirements for the localization of production. According to them, foreign seed producers establish joint ventures under the control of local organizations (the share of non-residents should not exceed 49%), carry out full cycle breeding and report to the Ministry of Agriculture. Mishustin signed such a decree in May, it should come into force on September 1 this year.
According to Euroseeds, its participants invested in research, production, improvement, marketing, improvement of supply conditions, and this “contributed to the food security of the Russian Federation.” Euroseeds also noted that the new localization requirements threaten the association’s further activities in Russia, particularly due to the lack of guarantees for the observance of grower’s rights and restrictions on the circulation of seeds. The government office declined to comment.
Experts interviewed by the newspaper reported that yields fell and prices rose as some foreign seeds were withdrawn from the market, but the regulator is confident in the need to protect the domestic market. According to the source of the newspaper, rye hybrids that yield an average of 7.5 tons per hectare are developed in the world, while Russian counterparts have a yield of 4 tons per 1 hectare.
According to the doctrine of food security, by 2030 Russia should be provided with seeds of local selection at a level of 75%. Last year, this figure was 60.3 percent, according to the Ministry of Agriculture. According to the agency, the new requirements will help to intensify the work of foreign companies in Russia, strengthen the position of local breeders and seed breeders, as well as protect the domestic market from possible dishonest actions of foreign companies. The Ministry does not expect a shortage of seeds in Russia.
formerly Siluanov said about pessimists and optimists.