Miller Magazine Issue 108 / December 2018

67 MILLER / DECEMBER 2018 INTERVIEW In 2017/18 season, Russia broke the record by expor- ting 52.4 million tons of grain that meant 47 percent inc- rease when compared to the previous year. 40.5 million tons of these exported grains were wheat. In this season, Russia is expected to export 38-39 million tons of wheat. In the last three years, Russia tripled the wheat it expor- ted and increased its global share to twenty percent. The country now eyes on increasing its flour export. Russia has seven thousand mills – large and small. However, only three hundred of these mills carry out industrial production. The annual production of wheat flour is 13.5 million tons. Russian’s share in the world flour export does not exceed 1-2 percent. Nevertheless, Arkadiy Gurevich, President of The Russian Union of Flour Mills and Cereal Plants, believes that Russian bu- siness people can increase their shares. To do this, they need the government’s support. Speaking to Miller Magazine, Gurevich commented on Russia’s milling sector, saying that Russian government, unlike Turkish, does not support the flour export. The government, Gurevich claimed, backs the wheat produ- cers that go against the flour business’s interest. He said Russia has the required raw material and the producti- on capacity to increase its flour export, adding that they need the government’s backing for the flour export. If that condition is met, he said, Russian flour industrialists have a chance to compete against other exporters. The following is the interview with Arkadiy Gurevich: Mr. Gurevich, could you please give us some infor- mation about The Russian Union of Flour Mills and Cereal Plants? What is the mission of your Union? Could you please tell us about your activities as an association in the milling industry? The Russian Flour Mills and Grain Businesses Associati- on is an umbrella organization for flour and grain produ- cers active in the agricultural sector, equipment producers of production and laboratory, science and education insti- tutions, the media organizations active in this sector. The history of the Flour Millers’ Association goes back 1888 that Russian millers had gathered to hold their first cong- ress and professional millers’ union had been created. Nowadays, the Flour Millers’ Association represents the millers’ interest, protects their interests in the gover- nment, facilitates a connection between businesses, and supports through informational and analytical materials. The association has many foreign companies from Turkey and China and also countries from the European Union and the Eurasia Economic Union. Could you please give us some information about the Russian flour milling industry? There are seven thousand mill businesses in the country, according to the evaluations of the Russian Flour Mills and Grain Businesses Association. However, sixty percent of the total flour production in the country belongs to industrial flour milling. There are approximately 300 faci- lities that carry out the industrial production. These faci- lities are developed industrial organizations that have the capacity, high efficiency, and technologically advanced. According to statics, Russia produces 13.5 million tons of wheat flour and 1.5 million tons of rye flour. Russia is one of the prominent countries in grain production. That is, Russia does not have the raw ma- terial problem. Nevertheless, what sort of problems do Russian flour millers have? The basic problem of Russian flour millers is that they have an excess production capacity. In recent years, the significant number of milling companies has closed down in Russia because of high competition. In the last three years, Russia tripled its wheat ex- port. Russia is now the world’s largest wheat export- er. How did Russia accomplish this success?