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Eurasian Economic Commission to support creating digital ecosystem of agro-industrial complex in the EAEU

Eurasian Economic Commission to support creating digital ecosystem of agro-industrial complex in the EAEU

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9/30/2019
“Agro-industrial ecosystem creation is an important element of digital transformation. Here, a cross-sectoral approach is required, when we operate under a principle of rapid strategic planning through project activities. Logistics cannot be considered separately from the whole process of agricultural production. The digital ecosystem of agro-industrial complex should include an overall lifecycle from production, movement, consumption and utilization of agro-products. If we identify all the elements of this system at the very beginning and start developing them in parallel, only then we’ll succeed”, - Karine Minasyan, Member of the Board - Minister in charge of Internal Markets, Informatization, Information and Communication Technologies of the Eurasian Economic Commission (EEC) stressed during the expert discussion “Logistics of agro-industrial exports: international digital platform” within the International Forum “Eurasian Week – 2019” in Bishkek. 

According to the EEC Minister, it is required, first of all, “to ensure seamless interaction between the Eurasian Economic Union (EAEU) countries in terms of existing platforms and controlling authorities based on common data models”. At the same time, Karine Minasyan noted that it was not the States that had to form the ecosystem, but the business, which should be provided with all necessary conditions. The Union countries must ensure common performance standards, and entrepreneurs will have to implement theoretical models in practice. The Eurasian Economic Commission is also ready to assist as much as possible by assuming the role of coordinator.

Mikhail Petrov, Head of the Commodity Exchange merged into the FEA of Kyrgyzstan, shared an example of such project development: “We have created a tool that allows solving direct linking of producers and basic buyers, and at the same time reduces any risks during transportation. Exchange mechanisms involve not only buying here and now on the spot, but also purchasing future products that have not yet been planted – this protects the market from overproduction and shortages”.

The future digital Eurasian platform shall have similar implementation principle, Andrey Belov, Project Manager of the “Agro Hub Kartaly”, Russian-Chinese Center for the Urals and Siberia, believes. “The agro-logistics is the driving power of international cooperation, and the less barriers between regional and national markets, the better trade develops. I think that new platform will allow creating a detailed analysis of cargo flows and use, at the same time, exchange futures mechanisms. Hence, it will be possible to achieve planned agriculture, ensuring sufficiency and excluding overproduction”, - the expert is convinced.

According to the discussion participants, transiting from a linear type of business organization to a “platform” one, will provide networking between manufacturers, suppliers and retail.

Inna Rykova, Head of the Sectoral Economy Center of the Research Institute of the Ministry of Finance of Russia, pointed out that currently there were no export-oriented agricultural producers and their consolidation was required in present-day conditions of doing business.

Oleg Dunaev, Deputy Chairman of the RSPP Committee on International Cooperation and Moderator of the session, is convinced that consolidation of resources of the EAEU participating countries will allow producers of agro-industrial complex to enter international markets more easily and quickly build up competitive advantages. However, it is required to provide not only digital, but also transport and logistics infrastructure. “It is required to pay special attention to constructing wholesale distribution centers of the Eurasian distribution complex as well as agro-industrial hubs on the main transport routes connecting the EAEU countries. These hubs can be built as a continuation of the concept advanced in the Chinese Belt and Road project, – Oleg Dunaev believes. - The final objective is to create an integrated digital ecosystem of international exchange of goods and services in the agro-industrial complex”.

The expert is sure that the States should use available international developments and update them with their own main projects.

Julia Zvorykina, Director of Autonomous Nonprofit Organization VEB Institute, Member of governing bodies of the International Automobile Alliance within the Belt and Road Initiative, stressed that production technologies can be the driver of economic growth in the agro-industrial complex.

Summing up the discussion, Karine Minasyan called on to move from words to action: “I invite all interested parties to unite and formalize the initiative for submitting it to the Eurasian Economic Commission. This will be the first effective step towards creating a digital ecosystem of the agro-industrial complex in the EAEU”.

At the end of the discussion, the session participants expressed their desire to create an Interstate Working Group within the EEC to develop a consolidated position and proposals for organizing digital ecosystem of the agro-industrial complex in the EAEU.

For reference
The “Eurasian Week” forum is an annual event arranged by the EAEU countries and the Eurasian Economic Commission. In 2019, the forum took place in the city of Bishkek, capital of the Kyrgyz Republic. The event’s agenda was focused on discussing the outcomes of the fifth anniversary of the Treaty on the Union. The Eurasian Week’s program implied more than 20 platforms to be arranged on three tracks: strategic, partner, and youth. More than 2000 persons took part in the forum. 

For more information, please visit the Eurasian Week’s website www.eurasianweek.com