Prospects for cooperation between Russia and African countries in the formation of food sovereignty

The expert opinion was prepared following the session of the Russia-Africa economic and humanitarian forum in 2023 “Russia and Africa: partnership for food sovereignty.”

Prospects for cooperation between Russia and African countries in the formation of food sovereignty

Food sovereignty — the most important area of cooperation between Russia and African countries.

In recent years, the world community has been faced with a number of negative phenomena that are fundamentally changing the situation in international food markets. The prospects for the risk of famine for individual regions and countries are realistically outlined. This largely applies to a number of African countries. This is primarily due to the unprecedented rise in prices for agricultural products, agricultural machinery and fertilizers. For African countries, technological services for all sectors of the agro-industrial sector, issues of financial support for all stages of production and sale of food products and problems of transport logistics in the agro-industrial complex (AIC), both between African countries and at the global level, are of particular importance.

Among the most discussed reasons for the growing problems in the field of food security, including within the framework of the session “Russia and Africa: partnership for food sovereignty” at the second Summit, economic and humanitarian forum Russia — Africa, the expert community highlights:

  • changes in climatic conditions, both long-term and short-term (droughts and frosts, heavy rains, etc.),
  • population growth
  • limited water resources for individual countries
  • problems of access to new technologies
  • lack of investment, especially in small business, etc.

In recent years, a number of new factors have been added to this, caused by changes in the political and socio-economic conditions of the functioning of the agro-industrial sector, both at the level of individual countries and at the level of large macro-regions and in general at the global level.

The most significant events that have a significant impact on the modern formation of global agricultural markets with the participation of Russia and African countries include:

  • confrontation between the Russian Federation and countries representing the NATO bloc;
  • “brand” crisis economic models
  • the desire of African countries to form national food independence.

It is logical to compare the current situation in the development of the agro-industrial sector of the world economy with the period of the “Green Revolutions” 1960s. The demographic explosion that began in the 1960s necessitated a sharp increase in food production, which required fundamental changes in agricultural production technologies.

The consequence of this was a kind of “technological colonization” countries of Africa, Latin America and Asia in the production and provision of food products, based on the principles of globalization. This has made the global community dependent on capital-intensive agribusiness. The introduction of new methods of agricultural production led to the uncontrolled use of production intensification means, such as fertilizers, plant protection products, antibiotics, conveyor production of livestock, poultry and aquaculture products, large-scale expansion of agricultural land, etc. These technologies made it possible to solve the problems of relative food security in countries Africa, Asia and Latin America, but also led to a number of problems related to public health and degradation of the natural complexes of these countries.

At the same time, the introduction of technologies in the agricultural sector, developed in Western Europe and the USA, determines the dependence of this sector of the economy in other countries, thereby limiting the main “principle of globalization of the world economy” — free competition in the markets for products of the agro-industrial sector. The main tools for restricting open markets in the agricultural sector were restrictions in the credit sector, as well as various technologies of the so-called “sustainable agriculture”, international “quality certifications”, “brand promotion” and other technologies. and so on. This causes problems in the formation of food sovereignty in a number of countries, primarily Russia and African countries.

The way out of this situation is the increasingly popular process of “glocalization”, which is associated with the preservation of regional and country (national) differences in the processes of production and exploitation of resource potentials in the context of globalization processes. The most significant processes of glocalization are manifested in food production, focused on country capabilities and preferences.

It is important to distinguish between the concepts of food security in the context of globalization and food sovereignty in the context of glocalization processes.

Current trends in the development of international markets in the agro-industrial sector

In addition to providing “own country” food security, food sovereignty also includes the possibility of individual countries having free access to international markets in the agro-industrial sector. The sanctions activities of a number of countries, aimed primarily at Russia, lead to the destabilization of modern international food markets. The existing traditional supply chains in the agro-industrial sector have been practically destroyed: from seeds, crosses, feed and fertilizers to pharmaceutical products, agricultural machinery and its components, packaging materials, semi-finished products, and final products. This had a negative impact on the technological, technical and, as a consequence, socio-economic conditions for the functioning of individual enterprises in the agro-industrial sector, and sometimes important sectors of the agro-industrial complex as a whole.

Currently, the existing system of interstate payments has been significantly disrupted, problems associated with transportation insurance, organization of loading and unloading operations, storage of raw materials and finished products of the agro-industrial sector have emerged.

The departure of a number of large European and American companies in the agro-industrial sector and public catering enterprises from the Russian market provoked a “brand” crisis. economic models, primarily in the countries of the European Union. Russian business has managed to fill the vacated niches. “Brand” crisis economic model manifested itself most acutely in the sector of production and sale of food products. The formation of new brands in the food sector can become a successful area of cooperation between Russia and African countries.

The current situation in the international markets for agro-industrial products has demonstrated the dependence of these markets on the basic supporting industries of the agro-industrial complex: the production of fertilizers and feed. This, in turn, determines the special role of Russia in ensuring its sustainable functioning. President of the Russian Association of Fertilizer Manufacturers (RAPU) Andrey Guryev indicated that 1.5 trillion has been invested in the development of fertilizer production in Russia over the past ten years. rubles, which significantly influenced the formation of the country’s modern food sovereignty. Increasing the export of Russian fertilizers to African countries may be the key to the successful formation of food sovereignty in African countries.

Andrey Guryev pointed out that out of 16 million tons of fertilizers sold on the African market, the share of Russian fertilizers is 10%. Russian fertilizer producers are ready to significantly increase supplies of almost all types of mineral fertilizers to African countries, including the most modern ones with bioadditives.

Most experts are confident that Russian agricultural producers are capable of ensuring the food sovereignty of Russia and becoming a guarantor of food security in other countries, primarily African countries. It is important to note that cooperation between Russia and African countries in the field of ensuring food sovereignty cannot be limited only to direct food supplies — this is a much broader process of mutually beneficial cooperation in the agro-industrial sector.

Important areas of cooperation between Russia and African countries are:

  • formation of common food markets, taking into account the specialization of various regions of Russia and African countries,
  • participation of Russian business in organizing agricultural production directly in African countries,
  • expanding Russian fertilizer exports
  • increasing supplies of agricultural machinery
  • implementation and development of Russian financial instruments in African countries, including various forms of lending, insurance, etc.
  • exchange of experience in the field of organizing small businesses, in relation to local conditions,
  • training of specialists of the “new generation”.

The existing and developing production, technological, financial and economic base of the Russian Federation is capable of successfully supporting these areas of cooperation.

This determines the prospects for organizing and developing counter flows of food products and other agricultural products, which leads to the need to activate transport and logistics corridors connecting Russia and African countries.

Under these conditions, the role of supranational integration associations, including BRICS+ and SCO+, is growing, which are capable of playing a leading role in ensuring the food sovereignty of the countries of Eurasia, Africa, and Latin America.

Russia and African countries, together with the BRICS+ and SCO+ countries, are able to form and successfully develop common markets for the main types of products that ensure food security — grains, rice, soybeans, fruits, beef, pork, poultry, fish and fish products, seafood, the whole range of fertilizers.

The role of the new transport and logistics corridor "North-South" in creating conditions for ensuring food security in African countries

In the current situation, Russia is becoming one of the main players in the markets for various products of the agro-industrial complex (AIC), ensuring international food security. At the same time, the agro-industrial sector is of particular importance in cooperation between Russia and African countries.

Given that Russia and African countries are capable of exerting a significant influence on a number of international agricultural markets, opportunities are opening up for the formation of common international markets in the agro-industrial sector without the participation of “unfriendly” companies. countries that, as a rule, perform intermediary functions in ensuring food security in African countries.

The formation and functioning of new international markets, ensuring not only food security, but also the food sovereignty of Russia and African countries, necessitates the organization of new transport and logistics corridors that can ensure sustainable transport links between participants in these markets.

Currently, the main export-import operations between Russia and African countries in the agricultural sector (as in other sectors) were carried out mainly through the Black Sea-Mediterranean and Baltic-Atlantic transport and logistics corridors. It is necessary to take into account the real risks of the successful operation of these corridors:

  • ever-increasing prices for passage of the Bosporus and Dardanelles straits,
  • restrictions on servicing vessels supporting Russian operations in European ports
  • remoteness of the Pacific ports of Russia from the main regions of production of agricultural products (wheat and mineral fertilizers),

In modern conditions, the North-South transport and logistics corridor is becoming the most promising. with subsequent access to the most important partners of the Russian agricultural industry — African countries.

Potentially, this corridor is promising for organizing and servicing export-import operations not only in Russia and African countries, but also in the countries of Central Asia (Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan, Uzbekistan, Afghanistan), the Caucasus region (Azerbaijan, Armenia, Georgia ), South Asia, the Persian Gulf, and in the future, the countries of the BRICS+ and SCO+ associations.

The importance of the North-South corridor lies in the fact that in its economic space countries interested in the formation of common markets can unite, excluding the significant influence of intermediary companies registered outside the region’s borders. And the countries united by this corridor can initiate the implementation of new international instruments regulating the functioning of markets in the agricultural sector. This makes it possible to develop and implement:

  • general systems of international standardization and various certifications,
  • tools and programs to support the competitiveness of producers in the agricultural sector and related industries at the regional and municipal level, both large producers and small businesses;
  • international databases and models in digitalization processes and technologies in the agricultural sector.

Unification of Russia and African countries to resolve issues of developing the transport and logistics system to ensure the delivery of agricultural products — the key to solving the problems of ensuring food sovereignty.

5/22/24
Stanislav Babich, expert of the Roscongress Foundation
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