Russian agriculture is still struggling to transform itself to a free market economy, however I see certain signs of modest improvement . Many collective farms went bankrupt after Perostoka when the huge subsidies to keep agricultural afloat ended. Those that remained because of good directors are agricultural enterprises that still operate in a fashion similar to Soviet times.

These mainstays of the community. are an inclusive part of the communities where many village people receive their modest salaries. These farms have an average size of 15,000 acres. They are more dominate in commodities such as grains and usually support a large dairy farm. The cows on these dairy farms generally produce low yield compared to the world averages. This needs to be addressed by better animal husbandry, feeding programs and ration supplement.

Since land reform there are now some private farmers but much smaller, usually about 125 acres. Last but not least are the house hold plots producing an astonishing 93% of potatoes, vegetables and produce sold almost exclusively at local outdoor farmers markets. This includes raw milk and fresh cheese.

Many Russian consumers still prefer the open markets because of its freshness. Many private agricultural agribusinesses and food processing plants are saddled with debts with excessive interest rates. Few farmers are able to offer enough collateral to secure loans. In the US no farm can survive with out a reasonable line of credit,. The government is now taken steps to help private farmers by subsidizing interest rate for short term modest loans.

I have been traveling to Russia for the last 12 years under the auspicious of ACDI-VOCA ( Aid For International Development) to assist Russian cheese manufacture in new product development and marketing. Much of my effort is to promote quality improvement by disseminating the newest technology from our Universities.

My next trip will take me to the Agricultural University in Omsk to conduct seminars. I am optimistic about the future if agribusiness in Russia It will takes several generations. After all It took our country 200 years to develop our democracy and free enterprise.

--Tony Kutter