Published by Global Banking & Finance Review®
Posted on January 21, 2026
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleRussia seeks to boost agricultural exports by setting up food-processing plants abroad, addressing challenges in grain export growth.
MOSCOW, Jan 21 (Reuters) - Russian companies should set up food-processing plants abroad with government support, Agriculture Minister Oksana Lut said on Wednesday, in a move aimed at revitalising the country's slowing agricultural exports.
Russia is the world's largest wheat exporter, but the growth of its grain exports slowed last year due to low global prices, which made growing wheat less profitable, and drought in the breadbasket Black Sea region.
The downturn has cast doubt on President Vladimir Putin’s target of increasing agricultural exports by 50% by 2030, prompting officials to consider investment-led strategies rather than relying solely on commodity shipments.
"It will no longer be possible to simply win the partnership of countries by supplying raw products. That's why we must come forward with investments," Lut told a conference of milk and dairy product producers in Moscow.
Lut said that some unspecified Russian firms have started to set up flour-milling operations in other countries. She added that the government discussed the idea recently and that successful pilot projects are needed to move forward.
(Reporting by Olga Popova; Writing by Gleb Bryanski, Editing by Louise Heavens)
Agricultural export refers to the sale of farm products to foreign countries. This includes grains, fruits, vegetables, and livestock, contributing to a nation's economy.
An investment-led strategy focuses on increasing growth through capital investments rather than relying solely on sales of goods or services.
Grain export involves selling grains such as wheat, corn, and barley to other countries. It plays a crucial role in global food supply and trade.
Processing ventures involve establishing facilities to convert raw agricultural products into finished goods, enhancing value and marketability.
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