On May 15, Alexander Lukashenko made a working visit to Vitebsk District to personally assess the northern region's experience in establishing integration structures in agriculture.
Alexander Lukashenko made a working visit on May 15 to Vitebsk District to personally assess the northern region's experience in establishing integration structures in agriculture. This is a new form of work for the agro-industrial complex, and it appears to be taking root successfully. The Head of State's conclusion is as follows:
— We have probably found a terrestrial form – an integration structure. Thanks to all of you, we have found it. My job was to analyze and say yes or no. I see that it is terrestrial. Feed comes from the land, and then milk, meat – for processing. Processed, sold, cash flows went back to where the milk and meat came from. This is normal. And in this way, we can revive Vitebsk Oblast in five years.
What changes are occurring in the region's agro-industrial complex, how will integration structures operate, and what support has the state provided them? We asked Boris YEFREMOV, Deputy Chairman of the Vitebsk Regional Executive Committee, to answer these and other questions for "SG".— Boris Sergeyevich, following the signing of Decree No. 70 "On the Development of the Agro-Industrial Complex of Vitebsk Oblast" on February 25, 2020, 7 agro-industrial associations have been established in the region based on OJSC "Verkhnedvinsk Dairy and Canning Plant", "Vitebsk Meat Packing Plant", "Moloko" of Vitebsk city, "Postavy Dairy Plant", UP "Glubokoye Dairy and Canning Plant", "Orsha Meat Packing Plant", "Polotsk Dairy Plant". These include 107 agricultural enterprises. In total, there are 239 in the region. By what criteria was it decided who to take under their wing and who to leave to fend for themselves?— The agro-industrial associations (as they are now called) include financially unstable farms that require assistance for their economic activities. If the locomotive enterprises had not taken them on board, they could not have survived and would have gone bankrupt. In union with processors, there is an opportunity to preserve the workforces and the production base on which further development can be built. Strong agricultural enterprises with investors, or those already part of other integration associations, such as Vitebsk Broiler Poultry Farm, remained outside these holdings.
a, as well as farms undergoing financial recovery within the framework of Decree No. 399.
— In winter, I visited a farm in Liozno District that could not be described as financially strong. But the management said they did not want to join the agro-industrial association. How were such agricultural enterprises handled?— This issue was raised during the Head of State's visit to Vitebsk Region in November last year and when discussing the draft Decree No. 70 with the President last winter. It was clearly stated: farms should not be forcibly driven into holdings. Each should make its own choice independently. This is how we acted. Those who did not want to were not included.
— And what if someone who is on their own today changes their mind tomorrow and asks to join an association? Will they be accepted?— Theoretically, this is possible, but in practice, three months after the issuance of Decree No. 70, the region will no longer be able to defer the debt obligations of such farms. If for those who joined earlier, they are spread over 15 years, then for a newcomer, if they have a meagre bank account, the parent enterprise will have to pay immediately. This is an inefficient use of money. No one will agree to this. However, if any of these agricultural enterprises truly find it unbearable over time, and the question of their inability to exist arises, there is still a way out. They can be joined, in whole or in part, to farms within agro-industrial associations, to be consolidated. That is, the number will not increase there, but the areas, the material base, and the number of employees will simply grow.
— In three out of the four agro-industrial associations created under Decree No. 320 of August 25, 2016 "On the Development of Agricultural Production in Vitebsk Region," the parent enterprises have now changed. Why was it necessary to take such a step?— At the time Decree No. 320 was adopted, due to the financial condition of other enterprises, only grain processors in Orsha, Polotsk, and Glubokoye could become heads of integration structures. They fulfilled their function of preserving agricultural production in their raw material zones. But now the parent enterprise is obliged to pay off the deferred debts of the farms and invest funds in their development. For this, there must be maximum concentration of revenue. And the largest amount of money from the sale of goods comes to the processors of livestock products. Therefore, Polotsk Dairy, Glubokoye Dairy and Canning, and Orsha Meat Canning plants have become the leaders of the updated holdings.
— The next question will be, is it notbut difficult. After the adoption of Decree No. 320 in 2016, there was a lot of positive emotion: they said, let's unite raw material producers and processors into four integration structures, from field to shelf, and everything will be fine. But it turned out that the drowning pulled the rescuers along, and the integration structures started to operate at a loss. Aren't you afraid that history might repeat itself?— First, let's clarify something. There are people who claim that Decree No. 320 did not work, which is why a new one had to be adopted. I believe that one cannot be so categorical. Yes, not everything planned has been implemented. In the agricultural enterprises of the integration structures, the required level of raw material production, revenue, profitability, and profit has not been achieved. This did not allow them to become self-sufficient. But, on the other hand, if it weren't for the regulatory document, those farms would not have survived until 2020. They would have gone bankrupt, the land would have been empty, and people would have been left without work. And thanks to the holdings, they got new equipment, other material resources, and agricultural production exists there. This is the main thing. And now, thanks to the deferrals and installments of debts within the framework of Decree No. 70, they will have the opportunity to get a breath of fresh air to develop further, increase the level of production, and eventually solve all problems.
— To develop, investments are needed. Where can they be obtained?— In accordance with Decree No. 70, an order of the chairman of the regional executive committee has been adopted on the amount of mandatory deductions to the special account of the Vitebsk Concern "Meat and Dairy Products". Processors will contribute 3 percent of the revenue from the sale of goods, works, and services after paying taxes to the budget, and other enterprises will contribute at least 1 percent. The funds will be used to cover liabilities, purchase materials, equipment, livestock, mineral fertilizers, plant protection products, etc.
— Any reforms will not yield results if the main problem – an increase in agricultural production – is not addressed. What are the future tasks in this regard? How are they planned to be solved?— By 2025, it is planned to milk at least 5,000 kilograms of milk per cow (in 2019 – about 4,000), increase beef production by 30 percent, and pork production by 70 percent. Of course, animal husbandry begins with feed. There are about 400,000 hectares of grain crops in the region. If 30 centners are harvested from each, the gross harvest will be 1.2 million tons. Is such a yield within our capabilities? Absolutely. Why is this amount of grain needed? For the publiccattle breeding requires 855 thousand, 120 thousand — state order, 250 thousand — seeds with an insurance fund.
— But for cattle, first of all, grass feed is needed.— The situation here is as follows. Out of 188 thousand cows, only 24 percent are kept in stalls year-round; the rest graze in the summer. Any specialist knows that it is significantly more difficult to adhere to technology and achieve high results on pasture compared to modern farms. The situation is better in other regions. In some, most cows are indoors all year round. Vitebsk region should strive for this. Therefore, for us, the priority is the reconstruction and construction of new livestock premises, where modern technologies for keeping and milking cows can be applied to increase herd productivity. In addition, an important point must be taken into account. The rural population is decreasing. And we still have many small farms with 100-200 heads with milking into a milk pipeline. There, an operator handles only 50 cows, while at modern large complexes, it is 5 times more. This means significantly fewer milkmaids are needed. That is why we set the task to reach by 2025 that approximately half of the milking herd will be kept in stalls year-round. In this case, fewer pastures will be needed, and more feed can be obtained from arable land on the freed-up areas.
— New technologies are not implemented for their own sake…— Of course, all this is done for people. So that they live better, work more comfortably. So that the rural worker has a decent salary. When a milkmaid receives not 500-600 rubles, but twice as much, she does not try to leave the farm, but, on the contrary, wants to get there.
— Thank you, Boris Sergeevich, for your comprehensive answers to all questions.