Shifanov, 42 years old, said he is turning to former Soviet countries such as Belarus and domestic customers.
Shifanov’s organic farm is located on the banks of the Oka River in the village of Khatmanovo, about 150 km south of Moscow.
Yevgeny Shifanov stands in the agricultural warehouse of the Chyorny Khleb farm in the village of Khatmanovo.
Russia’s military campaign in Ukraine has greatly affected Ukraine’s agricultural sector, leaving more than 20 million tons of grain stranded in the country, raising concerns about a global food crisis.
At Chyorny Khleb, where more than 1,000 hectares of grain are grown, wheat plants are knee-high.
The Russian Ministry of Agriculture forecasts a good crop this year, with an output of about 130 million tons, of which 87 million tons are wheat, a new record.
`We have difficulty with transportation,` Shifanov said, saying that he had signed contracts with partners in Europe and Israel, but the farm’s trucks carrying exported agricultural products were blocked at the border.
Tractor on Chyorny Khleb farm field on June 7.
`We have customers abroad, but now we can’t deliver, we only have to look to the domestic market,` he expressed, adding that he is looking for partners in Belarus, Armenia and Kazakhstan, countries that do not apply.
The farm is adapting to the new reality.
One of Shifanov’s partners was running out of label glue.
The grain market is also adapting to new conditions.
Workers in the factory of Chyorny Khleb farm.
However, Andrey Sizov, head of Sovecon, a Russian agricultural consulting company, said the country is selling grain at cheaper prices than the market.
`The discount rate for Russian grain during the war was 20 USD per ton,` Sizov said, adding that Russian grain is cheaper than products from many countries such as France.
Sizov said farmers not only face higher production costs due to inflation, but authorities in 2021 have imposed strict export taxes, accounting for about `30% of farmers’ revenue.`
`The irony is that wheat prices are currently at record highs, mainly due to the Russia-Ukraine conflict, but Russian farmers are not benefiting,` he said.