A new vision for agriculture
momagri, movement for a world agricultural organization, is a think tank chaired by Christian Pèes.
It brings together, managers from the agricultural world and important people from external perspectives,
such as health, development, strategy and defense. Its objective is to promote regulation
of agricultural markets by creating new evaluation tools, such as economic models and indicators,
and by drawing up proposals for an agricultural and international food policy.
A look at the news

Inherent Risks of Excessive Speculation in Russia

08 September 2008



Russia stands as a potential agricultural powerhouse: because of its underutilized production capability (millions of acres of arable land are lain fallow), the country shows very large production reserves. Today, Russian grains yield an average of 1.87 ton/hectare (one hectare equals 2.47 acres), an amount that is less a third of the current US yield (6.36 ton/hectare).

This situation has generated an increasing interest from investors – such as pension funds managers, Russian oligarchs and Swedish investors – who, lured by the recent soaring commodity prices, are thus supporting agricultural activities. Consequently, Russian farming is currently undergoing an unprecedented modernization. With 7% of the world’s arable land (more than 200 million hectares or close to 500 million acres) and millions of “virgin” square miles, the up-coming Russian “agricultural revolution” could very well disrupt the global agricultural situation.

While this strong investment trend can be constructive by increasing yields and output, it can nevertheless carry a significant risk, inasmuch as private investors’ goals differ from those of farmers and governments. Managers of these pension funds can, because of the short-term nature of their portfolios, severely threaten the stability of Russian agriculture and, more generally, its food security.

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Paris, 24 April 2019