The withdrawal of the American company Corteva Agriscience (Pioneer) from the Russian market may trigger problems in the country’s agriculture. Experts are already warning about a shortage of seeds for certain crops.
Marina Petrova, deputy chair of the Moscow Chamber of Commerce and Industry’s committee for entrepreneurship development in the agro-industrial complex and CEO of Petrova 5 Consulting, told Delovoi Peterburg that while the level of self-sufficiency with domestic grain seeds exceeds 75%, import dependence remains high for sunflower, at about 70%, and for corn, at more than 50%. Leftover seeds held by suppliers and Russian-produced varieties and hybrids are an alternative source.
“Domestic seeds often have poorer traits than foreign varieties. But Russia has a scientific base and decent domestic wheat, oat, rice and buckwheat seed products,” says Petrova. In her opinion, domestic selection and seed production is in need of structural transformation and state support. Over the past decade, the share of foreign seeds has increased significantly in Russia. This is primarily due to their higher yields. The largest players also offered package solutions involving seeds, agrochemicals, and management via digital platforms. Third-party designs may thus often be incompatible with existing ones.
Corteva Agriscience is a well-known producer of alfalfa, rapeseed, corn, cotton, rice, sorghum, soy, sunflower and wheat seeds, as well as plant protection products (including herbicides, fungicides and insecticides). According to the Leningrad Regional Committee for the Agro-Industry Complex and Fisheries, the region does not depend on Corteva Agriscience’s seeds. The committee’s press service clarified, however, that rapeseed, which is cultivated in the region, is actually grown from imported seeds. But corn and wheat seeds are domestically produced, while wheat seed is produced in the Leningrad Region itself.
Prinevskoye Breeding Farm CJSC (which grows rapeseed, among other things) reported that they had managed to purchase all the seeds they needed for the 2022 sowing campaign. “If there is no possibility of sourcing foreign rapeseed hybrids, we have a domestic analogue, Oredezh 6, which at the moment we can use to cover the needs not only of our farm, but also of the region,“ says Alexander Peretyatko, deputy general director for commercial affairs at Prinevskoye.
According to experts at the Agrophysical Research Institute, Russia has the potential to replace imported corn and rapeseed. This can also be said about wheat, which Crimea supplies in fairly large volumes. At the same time, seeds for protected soil (tomatoes, cucumbers, greens) are limited on the market. The chief researcher at the Institute’s Laboratory for Plant Biophysics, Professor Mikhail Arkhipov, recalls that back in 2016, a decree was issued ordering the production of original and elite agricultural plant seeds in the areas of domestic crop production that were highly dependent on foreign-made seeds. According to Arkhipov, the decree has still not been properly implemented.
“75% of the agricultural holdings that produce grain are owned by foreign companies. Foreign seed companies also continue to be actively involved in the Russian market. However, domestic seed growers can also solve the issue of supplying grain-growing areas with domestic wheat seeds. We have the necessary agricultural resources to produce our own seeds,” the expert notes.
In late 2021, President Vladimir Putin said that within a decade the country would be able to provide farmers at least 75% of the seeds they required. Arkhipov believes that this is a real prospect in the seed market for most agricultural crops. Petrova points out that many seed-growing enterprises need to improve their physical facilities and increase their technologization. Another problem that hinders the industry’s development is a shortage of personnel.
Source: Darya Dmitrieva, “Fresh ground: farmers prepare for shortage of imported seeds,” Delovoi Peterburg, 11 May 2022. Translated by the Russian Reader, who grew up on a farm in the Upper Midwest.
Corteva to Withdraw from Russia
Corteva has made the decision to withdraw from Russia and, having already paused new sales, is initiating a plan to stop production and business activities.
Our priorities remain the safety of our employees and global food security. Since the onset of this tragic war, we have taken all possible action to support and protect our Ukrainian colleagues and their families, our customers, and the communities in which we operate, including through direct and indirect aid to address the immediate humanitarian needs.
We have also put in place direct action to help assure as normal as possible 2022 growing season in Ukraine.
Given the war’s impact on global food security, the Company will donate seeds to Ukraine, Africa, and the Middle East region for the 2023 growing season, to lessen the impact on global food production.
Corteva joins with many others around the world in advocating for peace.
Source: Corteva.com, 28 April 2022