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Social and Economic development of the Republic of Karelia in 2009


  Economic Policy

    Industrial Policy

    Agroindustrial Complex


    Natural Resources
    and Ecology


  Results of 2009

Policy in the Field of the Agroindustrial Complex
including Agroindustrial Complex Development priority national project

To provide food safety of the region, employment of rural population, support of small and medium business Government of the Republic of Karelia is following government policy aimed at preservation and further development of agricultural production, fish-farming, as well as food and process industries.

The basic mechanism of the Government of the Republic of Karelia at conducting its policy of in the field of agriculture is government support of agriculture entities within the scope of implementation of the Agriculture of the Republic of Karelia Development of for the period through 2010 regional target program and the State program of agriculture development and regulation of markets of agricultural production, raw material and foodstuff for 2008-2012.

In 2009 government support from the budget of the Republic of Karelia and the federal budget at the rate of 408,6 million roubles was rendered to entities of agriculture of the republic, that was 10% less than the level of 2008, the share of the budget of the Republic of Karelia in total amount of support has made 79.3% compared to 75% in 2008.

Despite of decrease of the volume of state support from the budget of the Republic of Karelia in 2009, it was possible to keep the operating agricultural enterprises in the republic.

Annual growth of the volume of financing from the federal budget is observed. Thus, in 2009 for development of agricultural sector it has been assigned 8 times more funds than in 2004, or 13% more than in 2008.

In 2009 the right to recieve government support was exercised by 58 organizations of different patterns of ownership, 2 sole proprietors, 36 - industrial farms, 522 family farms.

The basic volume of government support from the budget of the Republic of Karelia directed on development of animal breeding, having made 241,1 million roubles.

Besides, for the first time in the republic there have been involved additional funds from the federal budget in the volume of 5,8 million roubles for implementation of the program Support of dairy cattle breeding and increase in production of milk in the Republic of Karelia in 2009-2012.

Their activities were carried out in the republic by 2 breeding farms and 3 breeding reproducers for dairy-farming of Ayrshire cows. In December, 2009 Agrarny State Farm, Inc., was appropriated the status of a breeding reproducer of dairy-farming of Ayrshire the Kholmogor breeds. Before other enterprises a task was set to improve breeding value of their herds and increase the number of breeding enterprises. To support livestock breeding from federal and republican budgets it was assigned 31,8 million rbl.

To develop production in agrarian sector there have been involved short-term credits amounting to 628,1 million rbl., investment credits amounting to 105,8 million rbl., 36,1 million rbl. of credits for development of small forms of management and 47,3 million rbl. of credits for development of industrial fish-breeding.

Government support in the form of compensation of a part of expenses for payment of interests on credits has allowed agricultural enterprises to accomplish production modernisation actively, to modernize the park of machines and equipment. Due to credit resources and own means machines were purchased to the sum of 28,6 million rbl. It has been concluded 3 agreements of leasing to the sum of 4,3 million roubles.

Within the scope of the state support the following objects were commissioned in 2009:

  • a cattle-breeding complex intended for 800 head of cattle with the milking block in Ilyinsky Breeding Farm, Ltd.
  • incubation-farming factory with the capacity of 4,5 million pieces of seeding of 5-15 grams in Kala-Ranta Joint-Stock Company
  • fish-processing factory Fedorenko sole proprietor in Kondopoga region

Opening of a fattening new shop took place in Korm Open Society that allows to produce additionally 200 tons of poultry meat a year.

Total amount of investments involved according to projects has made 296,4 million roubles.

In 2009 construction of a pig farm with a capacity for 12,000 head of fattening a year within the project of AKS-Holding, Ltd., in the settlement of Beryozovka, Kondopoga region, has begun. Implementation of the investment project of expansion of the trout farm in Roquefort, Ltd., proceeds.

The basic directions of the state support of small forms of managing in 2009 were subsidizing of credit interest rate and granting subsidies to support animal industries. From budgets of all levels in 2009 it has been assigned 8,50 million roubles.

Important part in production of potato, vegetables, fruit and berries belongs to gardening and country associations of citizens. In total in the republic there have been registered 673 noncommercial associations. Government of Karelia continued support of development of infrastructure of gardening companies through assignment of grants. Eight gardening companies have taken part in the competition, of them 5 were recognized winners, and they were rendered state support amounting to 1,4 million roubles.

Activities of the Social Development of the Countryside through to 2012 federal target program and the Social Development of the Countryside through to 2010 republic's target program are implemented to improve living conditions of citizens living in a countryside and for young experts industrial intake.

In 2009 43 participants of the program were assigned 37 million roubles, including 25,3 million roubles from the federal budget and 11,7 million roubles from the budget of the Republic of Karelia.

In total for the period of Programs' validity state support concerning improvement of living conditions was rendered to 454 families, including 72 young families and young experts, amounting to 154 million rbl.

State support of fish industry is carried out by means of granting subsidies for compensation of a part of expenses for payment of interests on credits up to one year and on investment credits. In 2009 it has been transferred 23,9 million roubles, including 19,6 million roubles from the federal budget.

Index of industrial production on Fishery activity category on the full circle of organizations in 2009 has made 135.7%.

Deep-sea fishery was uccessfully carried out by fishing enterprises of the republic, total catch has made 58,300 tons that is 10,800 tons more than in 2008. In 2010 on the basic objects of catching (cod, haddock) quotas were increased by 16.5%. Analysis of water bioresorcing limited by quota and planned work schedule of catching fleet allow to predict catching volumes in 2010 at the level 59,500 tons.

It was possible to halt the decline of volumes of extraction of water bioresources in the White Sea, it has been extracted 487,3 tons. The volume of herring catch has doubled and has made 103,6 tons. Total amount of the extracted seaweed has grown by 88 tons, or by 46%.

In fresh-water reservoirs fishermen of Karelia have caught 2644,0 tons, that is 6% more than the level of 2008.

By trout-breeding farms it has been raised 12,900 tons of uneven-age fish, including 8,800 tons of commodity fish. In comparison with 2008 the volume of raised fish in 2009 has increased by 6.2%.

Release of commodity food fish production, including canned food fish, has made 66,700 tons, that exceeds the level of 2008 by 13.1%.

To grant population of the republic an opportunity to purchase the basic food stuffs at reasonable prices and to promote agricultural production of local commodity producers there have been held the 15th agricultural trade fair in Kirov square and 27 weekend trade fairs in 6 microdistricts of Petrozavodsk. Similar trade fairs were organized in municipal regions. These forms of direct trade cause heightened interest of inhabitants of the republic.

As for epizootic situation, the Republic of Karelia is one of the most safe regions of Russia on the majority of infectious diseases of animals.

Food and and processing industry of the republic is presented by dairy, meat-processing, distillery, flour and feed mill and baking branches.

Currently home market of food articles of the Republic of Karelia is characterized by saturation, absence of physical deficiency, high competition in the market of food-processing industry which reveals both between the Russian and foreign goods, and also among local manufacturers.

In food and processing industry index of industrial production on the full circle of organizations in 2009 has made 91.8%. Principal cause of decrease is reduction of production volumes of some products.

Increase in volumes of production in 2009 was achieved in production of whole-milk products - 47 469 tons, or 104.2% to the level of 2008. On results of 2009 it is necessary to mention successful work of Medvezhiegorsk Milk Plant Joint-Stock Company which produced 120.2% of whole-milk production to the level of 2008 and Olonets Milk Plant Joint-Stock Company with 105.7% to the level of 2008.

Baking enterprises have increased volume of production of confectionery products: there have been made 1545 tons, growth to the level of 2008 makes 8.3%. Especially successful were Kondopoga Bakery, Inc., where production of confectionery products in 2009 has increased in comparison with 2008 by 40%, Pitkäranta Bakery, Inc., where production has grown 17%, Sampo Bakery of Petrozavodsk, Inc., where production has grown 11%, Petrozavodsk Bread-Baking Complex, Inc., where production has grown 4%.

ontinuing crisis of economy adversely affects work of enterprises food and process industries of the republic as a whole.

Decrease in production of alcoholic production by 12.5% to the level of 2008 is related to suspension of the activity of Petrovsky distillery of Petrozavodsk, the detached structural division of Rosspirtprom, Inc., in 2009, which has renewed industrial activity in February, 2010.

The greatest decrease in volumes of production has occured in the sphere of sausage products - there has been produced 1563 tons, or 55.9% to the level of 2008. The reason for that is essential production price growth for from the beginning of 2009 related to basic and auxiliary raw materials price growth, as well as decrease in purchasing power of the population.

For several years there has been observed decrease in production of bread and bakery. In 2009 production has made 30 344 tons of bread and bakery products (94.8% to the level of 2008), that is caused by reduction of consumer demand and by saturation of the market of the republic by a wide assortment of products from other regions.

In 2009 manufacture of flour has made 76.7% (to the level of 2008) and mixed fodders - 66.1%. Curtailment of production of flour is related to appearance of competitive production from the outside in the market of the republic, decline in production mixed fodders was caused by insufficient solvency of consumers of this product.

Technical support
Created: April 26, 2010. Last updated: June 10, 2010.
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