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Social and Economic Development of the Republic of Karelia in 2013

  Introduction

  Economic Policy

    Production

    Agriculture

    Construction Activities

    Tourism

    Small and Medium
    Entrepreneurship


    Innovation Policy

    Cooperation

    Management of
    Natural Resources


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The Agroindustrial and Fish-Breeding Sector

National policy of the Government of the Republic of Karelia in the sphere of agro-industrial complex is focused on preservation and development of agricultural production, creation of conditions for production of competitive products to provide citizens of Karelia with own-produced foods of high quality, creation of comfortable conditions for living in the countryside.

To solve its tasks the Government of the Republic of Karelia performed implementation of the package of measures, including rendering the state support to business entities of agro-industrial complex.

Work on adoption of necessary legal documents accomplished in due time has allowed to begin financing of commodity producers of agro-industrial complex since February, 2013. The state support to business entities of agro-industrial complex was preformed within the scope of the state program of the Republic of Karelia Development of agro-industrial complex and hunting sector of the Republic of Karelia in 2013-2020 approved by the order of the Government of the Republic of Karelia N36r-P of January 18, 2013. The republic's participation in resource maintenance of program actions was provided on conditions of co-financing from the federal budget and budget of the Republic of Karelia, in some spheres only at the expense of funds of the budget of the Republic of Karelia.

305 recipients, including peasant (farm) enterprises and own-operated (family) farms, have taken advantage of measures of the state support in 2013 in 28 different spheres of subsidizing.

In 2013 business entities of agro-industrial complex of the republic had been rendered state support form budgets of all levels amounting to 485,3 million roubles (growth to the level of 2012 by 18,5 million roubles), including from the federal budget 188,9 million roubles (growth by 71,4 million roubles), from the budget of the Republic of Karelia 296,4 million roubles (decrease by 52,9 million roubles).

Agriculture

In the accounting period all categories of business entities have produced gross product of agriculture in actual prices amounting to 5575,5 million roubles, that is 31% more than the level of 2012.

Index of production of farm produce (in comparable prices to the previous year) on all categories of farms has made 107.6%, including on 95.6% livestock products, 120.6% on crop products. Growth of production of agricultural products was observed in the republic for the first time in the past few years.

In 2013 due to involvement of subsidies to increase livestock population of milking herd livestock growth in agricultural organisations was provided (101.5% to the level of 2012). In total to perform this activity subsidies amounting to 10,0 million roubles were assigned from the budget of the Republic of Karelia.

To support agricultural commodity producers in the form of a subsidy for partial refund of expenses for 1 litre of realised commodity milk it has been assigned 214,2 million roubles, including 58,4 million roubles from the federal budget, 155,8 million roubles from the budget of the Republic of Karelia.

Average milk yield per cow on the agricultural organisations has made 6429 kg of milk, that exceeds the average level across the Russian Federation by 28.4 percent. The highest indicators of dairy efficiency were achieved at Medvezhiegorsk Dairy Factory JSC - 7976 kilos of milk per cow, Ilyinsky Breeding Farm Inc. - 7730 kilos of milk per cow, Megrega Pedigree State Farm Inc. - 7400 kilos of milk per cow, Vozrozhdenie Salmi Ltd. - 7299 kilos of milk per cow, Mayak Ltd. - 6946 kilos of milk per cow.

The state support amounting to 21,1 million roubles, including from the budget of the Republic of Karelia 9,1 million roubles, was rendered to support development of pedigree livestock farming. 55% of cattle population in the republic is pedigree and is concentrated in two pedigree farms and 4 pedigree reproductors. Proportion of pedigree livestock in total livestock has made 29,4% at the plan of 24%.

On results of 2013 farms of all categories have produced 62,900 tons of milk, that makes 96% to the level of 2012. Indicator decrease on milk production is caused by downsizing of milking herd in small business patterns.

In 2013 all categories of farms have produced 12,200 tons of meat of all types of animals (96% to the level of 2012).

Crop farming of the Republic of Karelia includes forage production, potato growing, vegetable growing, production of fruit and berry crops.

In the year of accounting bulk yield of potatoes by farms of all categories has made 94,3 thousand tons, that is 27% higher than the level of 2012, vegetables 21,5 thousand tons (24% more than the level of 2012).

The task of competitiveness is growing more actual in the context of Russia's accession to WTO. Therefore, new forms of support have appeared in 2013, that has become possible as a result of WTO membership. These are green box subsidies to agricultural commodity producers in the sphere of crop farming per 1 hectare of area under crops. On this type of subsidizing it has been paid 13,9 million roubles, of them 10,0 million roubles at the expense of the federal budget, 3,9 million roubles from the budget of the Republic of Karelia. As a result, the area under crops in 2013 in farms of all categories has grown and has made 32,1 thousand hectares (102% to the level of 2012), of them in agricultural organizations 25,4 thousand hectares (102%).

Implementation of the investment project by Mayak Ltd. on construction of a cattle-breeding complex for 400 heads with a milking unit in the settlement of Ladva, Prionezhsky municipal district, was in progress in 2013. Total project cost is 110,0 million roubles, including credit resources of Russian Agricultural Bank 88,0 million roubles. The funds were assimilated to the fullest extent, work with Russian Agricultural Bank concerning increase of financing of the project is in progress.

Reconstruction of cattle-breeding objects at Megrega Pedigree State Farm Inc. was accomplished, Ilyinsky Breeding Farm Inc., reconstruction of the farm at The Zaitsev Agrocomplex, Inc. was launched. Total volume of investments has made 31,0 million roubles.

The state support of all peasant (farm) enterprises and own-operated (family) farms from budgets of all levels has made 12,5 million roubles.

Along with types of support that have been in force earlier, in 2013 it has been introduced a new type of the state support to peasant (farm) enterprises and own-operated (family) farms subsidies from the budget of the Republic of Karelia on cattle breeding development. The amount of paid subsidies in this direction has made 3,8 million roubles. Recipients of this support have become 206 own-operated (family) farms and peasant (farm) enterprises.

The state support to peasant (farm) enterprises at registration of ownership of agricultural property they use from lands of agricultural designation was rendered in 2013 for the first time. The amount of the subsidy has made 125,900 roubles.

Support of novice farmers through granting subsidies to start and develop peasant (farm) enterprises continued. Five novice farmers from Sortavala, Olonets national, Pryazha national municipal regions were pronounced winners of the competition. Total amount of grants has made 6,7 million roubles, including 5,0 million roubles from the federal budget, 1,7 million roubles from the budget of the Republic of Karelia.

On implementation of actions aimed to stimulate agricultural commodity producers applying modern achievements in equipment and technologies it has been assigned 9,9 million roubles.

Total, due to the funds of the state support, own means and credit resources enterprises of agro-industrial complex and peasant (farm) enterprises have purchased 22 units of new equipment and machinery amounting to 46,5 million roubles.

Fisheries Industry

Principal directions of commercial fishing activity in the republic are fishery in sea and oceanic fishing areas, fish rearing for sale, as well as fishery in freshwater habitats and in the White Sea.

In the year of accounting 241 economic entities have been performing their activities in fisheries industry of Karelia, including 16 in oceanic fishing, 157 in inland water fishery (of them 30 in the White Sea, 127 in freshwater habitats), 57 in commodity fishery, and 11 in onshore processing.

The average volume of employment in the branch makes 2,5 thousand people. Average monthly salary of employees in the fisheries industry in the year of accounting has made 37,2 thousand roubles.

Index of production in JanuaryDecember 2013 on fishery, fish farming type of activity 91.4%.

The volume of extraction of bioresources has made 93,6 thousand tons (102,5% to the level of 2012), the volume of production of fish and processed and canned fish products has made 69,2 thousand tons (114,8%).

In the year of accounting fish farms of the republic have reared 23,6 thousand tons of fish of different ages, or 135% to the level of 2012. Growth of volumes of fish breeding is related both to favourable summer and fall seasons, and to launching of new fish-breeding areas by operating fish farms.

4 new fish farms: Rusproektstroi Ltd., PARAD-Plus Ltd., Zaonezhskaya Forel Ltd., Tur Ltd. have launched activities in the sphere of aquaculture in 2013.

The incubating and breeding complex of Virta Joint-Stock Company in Lahdenpohja region with the capacity of 12,5 million pieces of young fish a year is put into operation. The entire technological process at the complex is performed automatically by means of modern equipment, with use of high technologies of feeding and control, complete cycle of water supply. Total cost of the project is 378,7 million roubles, 13 new jobs have been created. The volume of sales of seeding in 2013 makes 9,2 million pieces.

In the year of accounting organizations of fisheries industry of the republic have supplied 72,6 thousand tons of fish and fish products (107% to the level of 2012) to the home market and to international consumers.

20,9 thousand tons (129%) was supplied for export, 51,7 thousand tons (106%) to the Russian Federation.

The main consumers of fish and fish products in 2013 were Estonia, Norway, the Netherlands, China. The largest share of supplies of fish products in total volume of export in volume terms falls on Estonia 38,4%.

Food and Processing Industry

Food and processing industry in the republic is presented by milk-processing, oil and fat production, meet-processing, baking, confectionery, distillery, food canning and flour-and-cereals industries.

The index of production on food and processing industry has made 79,3%.

In 2013 it has been produced 51,2 thousand tons of whole-milk productions (99.3% to 2012), 0,4 thousand tons of butter (101%), 1,1 thousand tons of sausage products (79.4%), 4,5 thousand tons of manufactured meat products (118.0%), 21,1 thousand tons of bread and bakery products (80.7%). Enterprises of the industry of alcoholic products have produced 491,45 thousand decalitres of alcoholic products, or 43% to the level of 2012.

Flour manufacture in republic has made 3 thousand tons that 2.3 times exceeds the level of production in 2012. Upon arrival of the new proprietor to Kondopoga Center of Grain Production Inc. modernisation and reconstruction of mill and provender milling is spent. The volume of invested funds has made 4,2 million roubles.

Yagoda Karelii (Berry of Karelia) production company Ltd. has enhanced output of products.

Total in the year of accounting it has been produced 1706 tons of products (2.4-fold growth to the level of 2012) on to 232 nomenclature units. At the same time, the company had not achieved the planned capacity and lacks financial resources necessary for industrial activity and settlements with creditors. The Government of the Republic of Karelia there is rendering assistance to the administration of the company in solution of matters with the basic creditor - Russian Agricultural Bank concerning complex re-structuring of credit resources and allocation of additional financing, and in search for strategic investors.

In order to expand food markets the Government of the Republic of Karelia has been rendering assistance to enterprises of the branch to promote their products, organize participation of local manufacturers in seasonal trade fairs and weekend trade fairs, in the republic and interregional exhibitions.

In the year of accounting 23 trade fairs and weekend trade fairs took place in territory of Petrozavodsk city district, including trade fair of agricultural products and Christmas fair in which agricultural organization, enterprises of food and processing industry, peasant (farm) enterprises have taken part.

Implementation of measures on improvement of living conditions of citizens living in the countryside, including young families and recent graduates continued within the scope of the federal target program Sustainable development of rural territories in 20142017 and through to 2020 and sub-program Sustainable development of rural territories of the state program of the Republic of Karelia Development of agro-industrial complex and hunting sector of the Republic of Karelia in 2013-2020.

Performance of activities concerning improvement of living conditions of citizens residing in the countryside has enabled provision of social payments on construction (purchasing) of homes by 42 rural families. Kalevala national, Pryazha national, Olonets national, Prionezhsky, Kondopoga, Medvezhiegorsk, Lahdenpohja, Sortavala, Byelomorsk metropolitan regions have taken part in this activity. The geography of regions had extended in comparison with 2012.

De facto financing of actions taking into account the remains of previous years and off-budget sources has made 65,7 million roubles, including 25 million roubles of funds of the budget of the Republic of Karelia, 15,7 million roubles from the federal budget, off-budget sources (own means of citizens and young families) - 25 million roubles.

Commissioning (purchasing) of housing by citizens residing in the countryside has made 3235,9 sq.m., including 1345,8 sq.m. by young families and recent graduates.

Powers assigned to the Government of the Republic of Karelia in the sphere if veterinary, in the field of hinting, supervision of technical condition of self-propelled cars and other kinds of machinery, protection and use of objects of fauna and water biological resources, protection, control and regulation of use of objects of fauna and their environment in 2013 were fully completed.

Technical support
Created: May 12, 2014. Last updated: May 14, 2014.
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