Agroindustrial complex of the Kaliningrad region. Speaker: A.V. Romanov Minister of Agriculture and Fishery of the Kaliningrad Region

Transkript

1 Agroindustrial complex of the Kaliningrad region Speaker: A.V. Romanov Minister of Agriculture and Fishery of the Kaliningrad Region

2 The Kaliningrad Region The Kaliningrad Region is the westernmost region of the Russian Federation The Region is an exclave, which borders upon Lithuania, Poland and has access to the Baltic Sea

3 Natural Environment of the Kaliningrad Region Climate (as of ) Month Average temperature, С 0. Days with subzero weather Precipitation, mm Days with precipitation Snow cover depth, mm January -0,9 10,0 68,4 16,4 7,1 February 0,1 6,7 50,7 15,9 4,7 March 2,4 2,6 55,1 13,7 2,2 April 8,1 0,1 41,2 10,1 0,9 May 12,6 0,0 45,1 9,8 0,0 June 15,8 0,0 65,7 12,0 0,0 July 18,5 0,0 109,7 12,6 0,0 August 18,0 0,0 140,5 12,1 0,0 September 13,8 0,0 79,2 10,1 0,0 October 8,4 0,0 104,3 17,0 0,4 November 3,2 3,8 54,7 14,3 1,9 December -0,3 9,3 68,4 18,1 4,5 Total 32,4 882,9 162,1

4 Natural Environment of the Kaliningrad Region Land Resources On average there are about 180 vegetative days per year in the region, which is more, than average value for Central and North Europe Total usable area of farming lands 723 th ha. 48% - plough land 50% - grassland and pasture-land 2% - orchards 154 th ha 223 th ha 200 th ha Plough land Plough land not in use Grassland and pasture-land Grassland and pasture-land not in use 146 th ha

5 Natural Environment of the Kaliningrad Region Land Resources There are about ha of alluvial soil (highyielding polder soils) Polder soils are protected by 600 km. of turfed dambs and channels, there are 116 water-pumping stations Natural environment is favourable for agriculture and agricutural production

6 Available ground water for different soil categories Available ground water Enough for yield centner/ha Year Rape Winter wheat Winter triticale Winter barley Fall rye Spring wheat Spring barley Rape Winter wheat Winter triticale Winter barley Fall rye Spring wheat Spring barley Potential crop estimate for soil category Potential crop estimate for soil category Potential crop estimate for soil category Potential crop estimate for soil category

7 Potential crop estimate (centner/ha) (as of ) Item Soil category (SC) SC 1 SC 2 SC 3 SC 4 Rape Winter wheat Winter triticale Winter barley Fall rye Spring wheat Spring barley The estimation is made on basis of soil compositional analysis, plant consumption, temperature condition, snow cover depth etc.

8 Agriculture of the Kaliningrad Region Crop Production 3% 6% 2% change in the structure of crop areas 14% 6% 2% cereal crops 47% 42% 44% animal-feed cereals industrial crops potato % 2005 vegetables -Since 2000 the surface of areas under crops has decreased from 262,1 th ha to 225,4 th ha (14 %), in comparison with 1990 the surface of areas under crops has decreased 1,8 times

9 Agriculture Crop Production Rape Croppage 48,5 61,4 th ton ,3 17,6 15, Rape has become one of the key-cultures in the Region s agriculture these last years

10 Agriculture 450 Fixed asset formation of agricultural enterprises in the Kaliningrad Region, mln. rubles

11 Processing Industry and Food Industry 70 Meat preparation and preservation industry 60 Flour-milling industry, bread and bakery 50 sausage goods production 40 Whole milk products Diary products industry 30 Beverage industry, food production Fat cheeses 20 Combined fodder production th ton 10 confectionary 0 Bread and bakery products

12 Balance consumption of particular products (per year, total for the Region) Item Domestic production Domestic consumption Standard of consumption Meat and meat foods (in meat equivalent), th ton Milk, th ton ,8 216,4 71,1 346 Vegetables, th ton 81,5 102,4 157,4

13 Condition of the market Rape The constant energy products price advance on world market gives a boost to demand for rape s oilseeds. Demands on the market are considerably higher than offers. Rape is a promising economic crop, traditionally grown in the Region, which allows renewable food and industrial raw materials and rich fodder additives.

14 Condition of the market Grain The Region is now producing about 250 th ton of cereal crops at average crop yield of about 30 centner/ha. The potential crop yield is up to 2 mln. ton per year at average crop yield of up to 80 centner/ha. In this case we can get a rival product with possibility of commercialization on Russian and world markets.

15 The Current Condition of Dairy Market Currently the demand for high-quality milk is higher than the supply and there is no competition between the farms. However, the competition exists between the milkprocessing enterprises. In Neman, Gusev and Nesterov districts of the Kaliningrad region the milk-processing plants has undergone reconstruction, the competition for raw milk is increasing and purchase prices for milk are growing.

16 The Current Condition of the Meat Market (beef) Prices for beef tend to increase Currently the basis for meat consumption is made up from export Purchasing capacity of the middle class customers is on the increase Environment and Climate conditions encourage the development of this industry; the forage reserve is enough Prices for energy resources and labor costs are lower than in the neighboring countries There is a state support of breeding stock purchase

17 The Current Condition of the Meat Market (pork) Currently the internal and Russian demand for pork is met by the imported supply. The condition of the Russian pork market of high quality is changing for the better, the market is growing together with the population s income. Potential target markets are the Kaliningrad region and the national Russian market. Advantages in the energy costs and labor costs.

18 Aims of agriculture development until 2016 The change in the structure of the use of agricultural lands Plough land in use unused plough lands grasslands and pasture lands in use unused grass lands and pasture lands 5,3% 21% 31% 30,9% 28% 20% 63,8%

19 Main tasks for agro- industrial complex development for the Kaliningrad Region Creating equal conditions for all the parties working on the market Development of land market Increase of the level of salaries, increase of the level of employment of the people living in the rural areas Social development of the villages Increase of the yielding capacity of the crops, efficiency of the crop production and livestock industry together with the other areas of the agro industrial complex Development of the seed production and of the pure-strain stock breeding Development of the system to introduce innovations into agro-industrial complex, development of the system of staff training. Development of the production chains, creation of the cluster in the regional agroindustrial complex c / h a 70 28,9 22,7 grain rape potato 45 Pic.: Increase of the yielding capacity

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21 Priority trends for investments in agro-industrial complex of the Kaliningrad Region 1.Plant Production. There are th. ha of non-arable agricultural lands. 2. Dairy Farming. There is a considerable demand for high quality milk. 3. Beef Stock Farming. The region has a good fodder base and 8 month pasture season. 4. Pig Farming. Local pig farming produces only % of the internal consumer market demand.

22 Priority trends for investments in agro-industrial complex of the Kaliningrad Region 5. Construction of the local rape-processing plant 6. Construction of the grain-processing plant 7. Construction of the fruit processing plant and juice producing plant 8. Construction of greenhouses for vegetable production in the area under grass 9. Construction of the manufacturing complex for butchering and carcass dressing 10. Construction of the grain elevator with the simultaneous storage capacity of 100 th. tonnes. 11. Investing in aquaculture development (the priority trend for investment in Fishery)

23 Advantages for agro-industrial complex of the Kaliningrad region Advantageous geographical location of the region, the cross road of a lot of transport routes, center of Europe Climate and environment advantageous for agricultural production Relatively cheep energy costs (compared with some other countries) Relatively cheap labor costs (compared with neighboring countries) Large share of non-arable agricultural lands Direct access to market outlets in Russian and Europe Access to sea, developed transport network Special Economic Zone regime Tax concessions for agricultural goods producers, state support

24 Special Conditions for agricultural industry development in the Kaliningrad Region Law on the Special Economic Zone in the Kaliningrad Region from N 16-Federal law : 1) definition of the resident (the main requirement: the volume of capital investments of no less than 150 mln. rubles must be made in no more than 3 years term after the legal person was entered in the Register ) 2) if the regulatory legal acts lead to the increase of joint tax burden for the resident (with the exception of excises, VAT and Pension Foundation payments) or set the limits for making capital investments in comparison with joint tax burden and the regime, that was active in accordance with federal laws and (or) other regulatory legal acts of the Russian Federation for the day the resident started financing the investment project, the adopted federal laws regulatory acts are not applied for 25 years. 3) a plot of land, necessary for the implementation of the investment project can be rented by the resident or it can be bought as property. The rental value, which is defined during the day of signing the rent agreement for the term necessary for implementing the investment project, can not change during the whole term of rent agreement. 4) there is no income or property taxes for the residents during the first 6 years of activity. From 7 th to 12 th they pay 50 % of the tax rate. 5) The region is a Free Custom Zone. Equipment, parts of machinery, spare parts can be brought into the region without payment of custom duties and taxes (with the exception of excise goods and some other goods, which do not comply with the Free Custom Zone legislature of the Russian Federation).

25 Special Conditions for agricultural industry development of the Kaliningrad region 1. Confessional taxation of agricultural industries. Income tax, VAT (with some exceptions), property tax and uniform social tax are substituted with unified agricultural tax, which is calculated on the basis of the results of the company s activities for the accounting business period. - Payment of land tax and revenue-based levy 2. Agro-industrial Complex Development national project of high priority presupposes simplification of the access to the credit recourses and access to preferential loans. The subsidy is given to agricultural producers and companies of all property categories from the budget of the Russian Federation and is equal to 2/3 of costs of interest payment, but no higher than 2/3 of refinance rate (discount rate) of the Central Bank of the Russian Federation, which is active for the date the loan was given. 3. The regional budget currently presupposes additional payments for agricultural producers (including those for pure strain stock-breeding).

26 Additional Information Development of agro-industrial complex is one of the priorities of the regional politics. The government will support the investment projects in this area. The support priority will be granted to those projects, that presuppose closed manufacturing cycles and development of production chains. There are comprehensive programs, being implemented in the region, aimed at creating favorable conditions for living and producing goods; for staff training, social development of villages, migration programs and soil productivity increase. Kaliningrad region is interested in attracting new modern technologies, management, efficient agro-industrial companies. There is now a considerable potential for development (lands, climate, markets, staff and so on), the market is relatively competition-free.

27 Manufacture of products in agriculture (prognosis ) expected sales volume Expected net costs, mln rubles Expected net profit without subsidies, mln rub

28 Food production, including drinks, mln. rubles

29 Fishing industry of the Kaliningrad Region

30 Structure of fishing industry of the Kaliningrad Region: Noncommercial organizations (Unions and associations) Fishing enterprises (oceanic fishery) Fishing enterprises (coast fishery) Fish processing enterprises Industry science and educational institutions Plant facilities and marketing organizations

31 Trends of fish catch and fish production manufacturing for the Kaliningrad Region fishing industry Fish catch, K tn. production, total K tn fish cans, msc ,6 384, ,9 210,2 213,5 331, ,8 283,3 240,6 301,8 334,7 280,3 331,1 359, , ,1 238,9 279, , ,5 56,

32 Share of the Kaliningrad Region fishing industry in national fish catch 2005 Saint-Petersburg and Leningrad region Kaliningrad region North catchment area Far East catchment area 1% 10% 25% 64%

33 Share of the Kaliningrad Region fishing industry in national fish cans manufacturing 2005 Saint-Petersburg and Leningrad region North catchment area Kaliningrad Region Far East catchment area 25% 11% 16% 48%

34 Fish catch regional distribution ,4%Central and Eastern Atlantic 0,2% Southwestern Atlantic 8,2% Baltic sea 1,6% Gulfs 2,9% Northwestern Atlantic 71,8% Northeastern Atlantic

35 Fish catch species composition 2005 Ocean perch 5% Sprat 7% Other 9% Scad 6% Blue whiting 42% Scomber 15% Herring 16%

36 Thank you for you attention