Problems with the establishment of a regional grain market

摘要

In 1994, the state purchasing function in Russia's Penzenskaya Oblast' was fulfilled by Khleboprodukt, which incorporated mills, large combined feed factories and bread processing plants. Contracts were negotiated with kolkhozy and sovkhozy for delivery of grain to a regional fund, with the volumes and types of grain being set by Khleboprodukt, which paid farms on the basis of the weight of grain supplied. The balance of grain requirements was then made up by deliveries (particularly of wheat and maize) from other regions. Following the abolition of compulsory deliveries of grain to the state, the volume of such sales declined sharply. From 1994 to 1997 the state purchasing function was carried out by the Agroprod Corporation. The Directorate of Procurement took over this role on 1 January 1998. Other organizations in the oblast' are also involved in this area, including the Directorate of the Bread Baking Industry, the Rasgyulyai trading house, Penzagrotekhnika, enterprises in the energy sector,and small businesses. The share of grain sales by farms to purchasing organizations is falling, and accounted for 18.7% of sales in 1998 compared with 37.5% in 1997. Farms are now selling an increasing proportion of their grain at market, to social nutrition organizations, or through barter deals. The market is most profitable for farms. Prices obtained via this sales channel are 10% higher than those obtained from purchasing organizations. Sales of grain outside the Penzenskaya Oblast' are generally to buyers in other Russian regions. There is a clear need for more regulation of trade in grain and its processed products.