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Social and Economic development of the Republic of Karelia in 2010

  Modernization of the Economy

    and Construction

    Small And Medium

    Industrial Policy

    Agroindustrial Complex


    Natural Resources
    and Ecology



The Agroindustrial Sector

The key mechanisms of implementation of the Government policy of the Republic of Karelia in the field of agriculture is the state support of entities of the agro-industrial complex within the framework of the regional target program Development of agriculture of the Republic of Karelia for the period through 2012 and the State program of agriculture development and regulation of markets of agricultural products, raw material and food in 2008-2012.

In the beginning of 2010 by the Law on the budget of the Republic of Karelia to support the agriculture it has been allocated 241,8 million roubles. In October, 2010 the Government of the Republic of Karelia has made a decision to assign 40 million roubles of additional funds to support of the livestock sector.

In 2010 the state support amounting to 398,4 million roubles, including 281,8 million roubles from the budget of the Republic of Karelia and 116,6 million roubles from the federal budget, was rendered to the agricultural entities of the republic. The share of the budget of the Republic of Karelia in the total volume of support has made 70.7% (69.3% in 2009).

Most of the state support from the budget of the Republic of Karelia was assigned to support the livestock sector — 221,4 million roubles; 60 million roubles from the federal budget was assigned for partial refund of expenses incurred by repayment of interest on credits received for financing of investment projects (41 million roubles in 2009). The amount of support assigned for partial refund of expenses incurred by repayment of interest on credits received for financing of investment projects from the budget of the Republic of Karelia also has increased in relation to 2009 by 4,2 million roubles and has made 14,1 million roubles.

The state support from the budget of the Republic of Karelia assigned on delivery of seeds has increased considerably - up to 9,1 million roubles, that exceeds the level of 2009 6.5-fold, and 1.8-fold — to improve the soil fertility — 5,4 million roubles.

The main directions of the state support of small businesses in 2010 were:

  • provision of a subsidy for partial refund of expenses incurred by repayment of interest on credits received for financing of investment projects, amounting to the refinancing rate of the Central Bank of Russia;
  • provision of a subsidy to support the livestock sector.

Besides, family farms and sole traders had an opportunity to get subsidies to support elite seed production, to support delivery of seeds for forage crop raising in regions of the Far North and equated localities, for partial refund of expenses incurred by purchase of means of chemicalization.

The Government of the Republic of Karelia rendered support to horticultural, market-gardening or dacha non-commercial associations of citizens. The amount of the state support assigned on development of infrastructure of their territories in 2010 has made 1,5 million roubles.

24 agricultural organizations of various patterns of ownership, family and industrial farms, 43 agricultural consumer cooperative societies operated in the sphere of agriculture of the Republic of Karelia in 2010. 105 large, average and small enterprises operated in the sphere food and processing industries, 356 economic entities operated in the fish sector.

In September, 2010 Vidlitsa Agricultural Farm Inc. was appropriated the status of a reproducer raising bloodstock Ayrshire cattle that for the first time has allowed to increase relative density of the pedigree cattle in the general livestock of all kinds of animals in the republic up to 24% at the plan of 10.1%.

The state of affairs in the sphere of fur farming has improved. Thanks to support of the Government of the Republic of Karelia, a unique fur breeding enterprise Pryazhinsky Joint-Stock Company has purchased 3500 young pedigree minks that has allowed to restore the livestock of the basic herd of these animals. In addition, from the budget of the republic it has been allocated 2,6 million roubles to support fur farming.

At the support of the Government of the Republic of Karelia introduction of modern technologies of laying-in of fodder proceeds in the republic. In the accounting year of Megrega Pedigree State Farm Inc. has continued using resource-saving technologies of laying-in of haylage and silage by pressing it in rolls with hermetic polymeric film sealing.

In order to increase professional skills and prestigiousness of work in cattle breeding republican competitions of artificial insemination operator are held are held once in two years. In the accounting to year on the basis of Salmi Revival Ltd. there has been held the 18th republican competition in which representatives of 12 agricultural productions have taken part.

In 2010 on the basis of lyinsky Breeding Farm Inc. there has been organized the Karelian Field Day that becomes a tradition for the republic. Within the scope of this event there have been held a demonstration of modern soil-cultivating and fodder conservation equipment and a workshop seminar on the subject of perfection of the branch of fodder production. More than 80 experts of the agricultural enterprises of the republic, as well as the leading scientists from Karelia, Leningrad and Novgorod regions have taken part in the Karelian Field Day. Besides, within the scope of the event there has been held a republican competition of professional skills among tractor drivers.

In order to make assessment of the financial condition and operating efficiency of enterprises, as well as to strengthen control of financial and economic activity in 2010 there have been held balance commissions on results of work in 2009, quarterly analysis of financial and economic activity of agricultural organizations was conducted. Heads of agricultural organizations are recommended to conduct activities to improve the situation in their farms.

The Government of the Republic of Karelia assisted in solution of tasks of additional crediting of the large investment project in the settlement of Beryozovka of Kondopoga region — construction of a pig-breeding complex for 12,000 head a year (Kondopozhsky pig complex Joint-Stock Company).

Activities of the federal target program Preservation and Restoration of Fertility of Soils of Agricultural Land and Landscapes as a National Property of Russia in 2006-2010 and for the Period through to 2013 were implemented. Repair of meliorative systems was conducted in 2010 in territory of the republic and 0,2 thousand hectares of agricultural land was prevented from withdrawal from agricultural operation, cultural and technical woks on the area of 0,6 thousand hectares wee performed. 0,27 thousand tons of reactant of mineral fertilizers was applied, as well as 100,000 tons of organic fertilizers inlcuding 13,000 tons of peat. There has been held agrochemical examination of soils on the area of 15,000 hectares.

With the purpose to perform the federal legislation in the field of fishery in the second half of 2010 competitions on the right of conclusion of contracts to use fishery sites for various kinds of fishery activity, including 6 competitions in commodity fish breeding, 1 competition in industrial fishery, 1 competition - to cinduct traditional economic activities of small indigenous peoples were made more active. On results of competitions there have been concluded 43 agreements of using fishery sites.

According to the powers transferred by the Russian Federation in the field of using water biological resources, organization of extraction of water bioresources in internal reservoirs of the Republic of Karelia was carried out. The Government of the republic distributed fishing (extraction) quotas for implementation of industrial and amateur fishery. In 2010 fishing quotas were issued to 249 users. Besides, there have been concluded 258 contracts of using water biological resources from among objects of fishery and which general admissible catch is not established.

To draw fishing quota assigned to the enterprises of Karelia completely, in 2010 trade conditions and work of extracting enterprises was analysed, utilization of quotas was controlled. Total amount of quotas of extracting enterprises of the republic in oceanic areas of fishery in 2010 was made 68,151.1 thousand tons, it has been drawn 66,163 thousand tons, or 97%.

Within the framework of implementation of the large investment project in the field of commodity fish breeding in Segezha region there have been formed fishery sites which development will make it possible to increase volumes of commodity fish and young fish breeding by 5,000 tons.

For popularization of amateur and sports fishery in August, 2010 there has been organized an international fishing festival on Lake Janisjärvi.

Trolling of salmon in Lake Onego developed further on; it was organised by the legal persons who had concluded agreements of using fishery sites and possessing granted quotas for amateur and sports fishery.

In 2010 volumes of commodity fishery have grown 2274,7 tons, or 17.4% less. Decline in volumes of fish breeding was caused by anomalous heat the summer of 2010. The temperature of water in reservoirs varied from 20 to 27°Р, which is critical for trout breeding. Therefore, it has been organized development of scientific recommendations and carrying out of activities focused on prevention of mass death of fish and reduction of consequences of influence of complex weather conditions on the process of breeding (optimization of feeding, prevenion of fish diseases, introduction of aeration, etc.).

In the sphere of commodity fish breeding implementation of investment projects providing creation of new farms (Virta Ltd. incubation-raising farm in Lahdenpohja region) and expansion of the capacity of existing farms continued, which resulted in increase of volumes of breeding by 11 fish-breeding farms.

Food and processing industry of the Republic of Karelia is presented by dairy, meat-processing, liqueur and spirits, milling and feed-stuff and baking branches. Production of food and processing of agricultural raw material in 2010 was carried out by 105 enterprises with total employment of 4,100 people.

In 2010 implementation of a large investment project of construction of a factory in Petrozavodsk (Yagoda Karelii (Berry of Karelia) Production Company Ltd) that will produce jams, preserves and confitures made of wild and garden berries proceeded. The factory will become the largest enterprise in territory of Russia producing toppings, flavours, precooked fruit and berry mass widely used in dairy and confectionery industry at production of ice-cream and juices, and purées. Total amount of investments makes more than 600 million roubles. There will be organized 160 workplaces (currently there work 20 employees). The Government of the Republic of Karelia rendered assistance in solution of tasks of additional project lending.

In 2010 has renewed industrial activity of Petrovsky Distillery of Petrozavodsk, the branch of Rossprtprom Inc. A new Italian completely automated bottling line is installed at the plant, equipment for technological shop has been purchased and assembled, some production and storage facilities have been repaired. All this has allowed to achieve essential growth of production of vodka and distillery products in the republic which has made 1048,100 decalitres (6.8 times more to the level of 2009).

In order to promote products of local commodity producers meetings concerning cooperation of Karelian manufacturers of production and trading organizations with participation of representatives of regional and federal trading networks, manufacturers of food production and interested ministries and departments were held repeatedly.

To grant an opportunity to the population of the republic to get the basic provisions at reasonable prices there have been organized agricultural fairs and "day off" trade fairs.

In 2010 to improve living conditions of citizens living in the countryside, including young families and young specialists, it has been assigned 10,6 million roubles (including 6,8 million roubles from the federal budget, 3,8 million roubles from the budget of the Republic of Karelia). The state support to improve living conditions in 2010 was rendered to 8 citizens and 5 young families living in the countryside.

Technical support
Created: May 23, 2010. Last updated: June 9, 2010.
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