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Ass I stance in Rebulldlnfl Russia's Food and Agriculture Systew 



We have been engaged now In several years 's effort to use AflMrlcan 

 noney and know-liow to help the transformation of Russia's agricultural 

 systen. I think that we can be proud of our early comltawnt to this 

 Important ob^Jective and we can learn from our experience thus far when 

 structuring new or additional efforts. 



in addition to continuing to provide direct humanitarian food aid 

 targeted to specific segments of the population where necessary, and 

 maintaining sales of our farm products, we need to be involved 

 directly and personally with the Russian people and particularly the 

 entrepreneurs who will be operating businesses all through the food 

 chain in a matter of years. 



Here, I have three specific Ideas to put forward: 



1) A Farmer-To-Farmer Program Team Concept 



2) Building Viable Farm-Jo-Consumer Markets 



3) Agri -Enter prise Funds 



1. Farmer to Farmer Progran-This Is an excellent way of bringing real 

 practical know-how from our farmers and farm-related businesses to 

 real Russians at the farm level. However, most of the efforts thus far 

 appear to have been centered on short-term visits to Russia. It is 

 difficult to build confidence with our Russian counterparts and 



to understand the intricacies and challenges at the farm level In a 

 matter of days. What Is needed is a longer-term comnltment from our 

 farmers and managers to spend 3-6 months at minimum in one place. In 

 this context, i would particularly recommend that we try to put teams 

 together to work at the rayon/county level, consisting of farmers with 

 different crop and livestock experience as well as individuals with 

 storage, handling and marketing know how. They could work as a team 

 and individually with the farms in a specific region (rayon) or 

 county 'si zed area. 



2. Building Viable Uarkets-We need to bring the principles of 

 operating a competitive marketing system to the farm and local levels, 

 as well as throughout the food chain. Privatization is an Important 

 principle of any economic reform. However, even if Russia chooses to 

 maintain some private or state-controlled monopolies in agriculture, 

 as Is the case with Canada's Wheat Board. Australia's Wheat Board and 

 Japan's Food Agency, for example, we should encourage officials to 

 develop those as market-oriented businesses. 



At the farm-gate level and moving up through the marketing system for 

 fruits and vegetables, the Dutch auction system could be one of the 

 most effective ways of building understanding and experience of the 

 way markets function. it incorporates directly the issues of real 

 time marketing, quality, competition, and the responsibility of buyer 

 and seller. We might seek to do a Joint pilot project with the 

 Government of the Netherlands, or possibly even under the Farmer to 

 Farmer program, or with Cooperatives and their counterparts In the 

 Netherlands. 



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