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Economic development of the Republic of Karelia in 2007

  Economic Policy

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    Agroindustrial Complex

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   Results of 2007

Policy in the field of the agroindustrial complex

Considering importance of provision of population of the Republic of Karelia with fresh natural food, state policy of the Government of the Republic of Karelia in the field of agriculture is directed on preservation and further development of agricultural industry, fish-farming industry, as well as food and processing industry of the region.

In 2007 The Agroindustrial Complex Development in the Republic of Karelia through to 2010 Republican target program has been approved as a basic mechanism of following government policy of support of agricultural commodity producers.

From the budget of Karelia and from the federal budget in 2006 agriculture business entities of the republic were rendered 389,5 million rbl. of government support, that is 38.8% more than in 2006.

In 2006 for the state support of agricultural production it has been allocated 304,8 million rbl. of budgetary funds, which exceeds the level of 2006 by 54,7 million rbl., and 39,4 million rbl. to support production of mixed fodder and flour.

From the federal budget it was received 14,9 million roubles more than in 2006, volume of investments in development of agricultural production of republic has made 45,4 million roubles.

Government support has allowed agricultural commodity producers of the republics to compensate a part of expenses and increase production volumes of all kinds of meat, milk, eggs, open ground vegetables to the level of 2006.

In 2007 agricultural producers, including at participation of budgetary funds, actively conducted modernisation of production, as well as modernization of the park of machines and equipment.

Due to own means and credit resources Dzyubenko Breed Livestock State Farm municipal unitary enterprise purchased equipment to the amount of 16,7 million roubles, MegregaBreed Livestock State Farm, Inc., - to the sum of 1,9 million roubles, Yanishpole Joint-Stock Company - to the sum of 1 million roubles, Pryazhinsky Joint-Stock Company - to the sum of 1 million roubles, Ilyinskoye Breed Livestock Farm, Inc., - to the sum of 0,5 million roubles.

Cost of equipment purchased by family farms has made 18,5 million roubles, and 0,7 million roubles - by industrial farms.

In 2007 there has been concluded 10 leasing contracts to the sum of 6 million rbl. Enterprises purchased agricultural machinery, equipment, pedigree cattle.

According to the order of the Government of the Republic of Karelia N45-P of March 22, 2007 On the order of provision of grants from the budget of the Republic of Karelia for partial compensation of expenses on production of flour and mixed fodders in 2007 Kondopoga Combine of Bakeries, Inc., in 2007 received 39,4 million roubles, including 35 million roubles for partial compensation of flour production expenses, 4,4 million roubles for production of mixed fodders. Government support has allowed agricultural enterprises of the republic to buy the combine's production at the price of 5-10% less than in the market.

In October-November, 2007 within the framework of commodity interventions made by the Ministry of Agriculture of the Russian Federation Kondopoga Combine of Bakeries, Inc., purchased 5535 tons of bread wheat. The specified grain will be processed into flour and used for bakery needs according to the Agreement concluded between the Government of the Republic of Karelia and Kondopoga Combine of Bakeries, Inc.

In 2007 Government of the republic implemented the project of providing schoolchildren with milk. For the period from September to December, 2007 dairy factories have delivered 354 tons of milk and 7,1 tons of fruit drinks to schools of the republic, that has allowed to provide with milk more than 22,5 thousand pupils of 1-4 classes. In 2007 in municipal budgets it was transferred 17,8 million roubles from the budget to finance this action. In 2008 for the specified purposes from the budget of the Republic of Karelia it is planned to allocate 38 million roubles.

Special attention in the republic is paid to development of commodity fish-breeding enterprises. Enterprises of various patterns of ownership are engaged in trout-breeding in Karelia: farmers, limited liability companies, fishing collective farms, part-time farms at large industrial enterprises.

Work on creation of new fish-breeding farms proceeded in 2007. New enterprises have been founded: Parola, Ltd., RokFor, Ltd., on Ladoga lake, Parad, Ltd., on Onego lake; on lakes in regions of the republic Semchozero, Ltd., in Medvezhiegorsk region; Rainbow Trout, Ltd., , Albatross, Ltd., in Pryazha region; Nurdas, Ltd., Tiksha, Ltd., in Muezersky region; Kintezma, Ltd., in Kalevala region, Sedletskiye, Ltd., in Louhi region, PP Suojarvi, Ltd., in Suojarvi region, Vecherny Briz, Ltd., in Olonets region.

In territory of the Republic of Karelia it is registered 673 noncommercial gardening, farming and country associations of citizens which play important role in production of potato, vegetables and fruit and berry production. In 2007 support of infrastructure development in territory of associations through allocation of grants continued. 22 gardening companies have taken part in the competition, 12 of them were recognized winners and received government support in the amount of 5,11 million roubles.

In 2007 the Plan of Antiepidemic and Preventive Actions was executed in full, therefore, from the epizootic point of view the Republic of Karelia is one of the most safe regions of Russia on the majority of infectious diseases of animals.

For realization of authorized activity to establishments of veterinary science in 2007 it has been allocated 41,4 million roubles from the budget of the Republic of Karelia, that is 4,8 million roubles more than in 2006.

Means are allocated for realization of actions on improvement of living conditions of citizens within the scope of Social Development of Countryside through to 2010 federal and republican target programs in 2007 at the amount of 14,3 million roubles including:

  • 7 million roubles from the federal budget,
  • 7,3 million roubles from the budget of the Republic of Karelia.

30 citizens residing in the countryside and in need of improvement of living conditions from Byelomorsk, Kondopoga, Kalevala, Louhi, Lahdenpohja, Olonets, Prionezhsky, Pryazha, Pitkäranta, Pudozh municipal units became participants of actions.

11 families have decided to improve their living conditions by buying apartments in the secondary housing market, and 19 families - by construction of individual houses using government support.

To increase of professional skills and prestigiousness of work in the sphere of agriculture republican competitions of operators of machine milking are held twice a year. This year the 25th competition was held on the basis of Agrarny Farm State Unitary Enterprise of the RK. The winner of the republican competition T.Kokkonen represented our republic at the All-Russia competition.

In 2007 purposeful work on perfection of activity of market places and creation of conditions for increasing volumes of domestic production sold was held. On September 1, 2007 opening of the first in the republic covered agricultural market took place in Kondopoga. In the market there are 50 trading places to sell vegetables and potatos, fruit, berries, greens, meat, milk and dairy products, fish, and eggs.

As a tradition, agricultural fairs and weekend fairs are held in the fall in Petrozavodsk and regional centers of the republic.

The third agroindustrial Karelia Agro Expo 2007 exhibition-forum was held in Petrozavodsk, having already become a tradition. The general exhibition area has made more than 3 000 square meters, the number of its visitors has reached about 30 thousand people. In the exhibition have taken part about 120 enterprises of Karelia, regions of the Northwest of Russia, Finland, and Sweden.

Within the framework of the exhibition sale of agricultural products (eggs, meat, fish), production of enterprises of food-processing industry (bakeries, dairy plants, meat-packing plants), and planting has been organized. Cost of realized production has made about 35 million roubles.

Government of the Republic of Karelia in 2007 carried out active information policy directed on covering the course of realization of the Agroindustrial Complex Development priority national project, on creation of the positive attitude in the society to agricultural production and country way of life. Operative activity was regularly covered by regional broadcasting companies and printed editions.

Tasks for 2008 in the sphere of agroindustrial complex development are:

  1. Realization of actions and performance of target parameters of the Agriculture Development through to 2010 regional target program, Social Development of Countryside through to 2010 federal and republican target programs;
  2. Participation in actions of the Agriculture Development and Regulation of Agricultural Production, Raw Material and Food Markets for 2008-2012 government program;
  3. Preservation of veterinary well-being in territory of the Republic of Karelia;
  4. Development of the international, inter-regional cooperation and trade exhibition activity.
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Created: March 24, 2008. Last updated: April 18, 2008.
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