A year ago, on February 25, the Head of State signed Decree No. 70 "On the Development of the Vitebsk Region Agro-Industrial Complex". It was this moment in the agricultural sector of the northern region that became a new starting point and a guiding beacon by which the performance of the agro-industrial complex is assessed.
A year ago, on February 25, the Head of State signed Decree No. 70 "On the Development of the Vitebsk Region Agro-Industrial Complex". It was this moment in the agricultural sector of the northern region that became a new
agricultural. These are combines and plants with the highest revenue concentration and a complete production cycle: from field to counter. The main goal is to increase the volume of agricultural products to ultimately fully utilize the production capacities of processing enterprises. As a result of the merger, the total area of agricultural land of integration structures is 769 thousand hectares, or 62 percent of their total number, including arable land of 494 thousand hectares. The number of cattle is 347 thousand heads (66 percent of the regional), pigs - 155 thousand (37), poultry - 1.8 million (28). The number of employees in agro-industrial associations is 30.8 thousand people.
It is too early to draw conclusions
In fact, the decree came into effect in April-May 2020. All legal aspects of the creation of integration structures were fully completed on August 27. Therefore, the time during which agricultural organizations have actually worked under the new conditions is not very long - just over half a year. Meanwhile, at least a year is needed for an objective assessment of the region's agro-industrial complex.
Intermediate results on the efficiency of the Vitebsk region's agro-industrial complex (AIC) under Decree No. 70 were discussed at a meeting of the Vitebsk Regional Executive Committee. The meeting was attended by Vladimir Andreichenko, Chairman of the House of Representatives; Dmitry Krutoy, Deputy Head of the Presidential Administration; Alexander Subbotin, Deputy Prime Minister; Mikhail Rusy, Chairman of the Standing Commission of the Council of the Republic for Regional Policy and Local Self-Government; Ivan Krupko, Minister of Agriculture and Food; and heads of other ministries and departments.
Alexander Subbotin shared following the meeting that at least a year is needed for an objective assessment of the Vitebsk region's AIC performance:
— At least a year is needed for an accurate analysis. Nevertheless, over the elapsed period, the region has managed to achieve certain results, although there is still much work to be done. All indicators have slightly increased. Crop production and animal husbandry have performed well. There are also problems: key indicators (profit, revenue, etc.) have not been met. Issues related to personnel policy and the manageability of integration structures, as well as the synchronization of their activities both internally and with each other, require closer attention. There is a shortage of financial flows to make the entire mechanism work more intensively.
The significance of the latter factor was noted by Nikolai Sherstnev, Chairman of the Regional Executive Committee. He also emphasized that during the preparation of the regulatory framework for the implementation of the decree, lists of organizations were identified, 135 agro-industrial association agreements were concluded, and raw material zones were formed. An inventory of assets and liabilities was carried out. Seventy-two percent of the debt obligations of agro-industrial association (AIA) enterprises, amounting to 2.4 billion rubles, have been restructured.
The adoption of the norms and the decree did not affect the results of production activities. During the restructuring period, work with creditors continued until September 1, 2020, and with banks until March 1, 2021. The main types of agricultural work, including spring field work, fodder procurement, harvesting, and winter sowing, were completed without the preferences granted by the decree. The document merely provided an opportunity to clear accounts, improve the solvency of organizations, and reduce the debt burden.
The transformation of the Vitebsk region's agro-industrial complex (AIC) is still in its early stages. The following results inspire confidence in its correctness. Thus, the growth rate of gross agricultural production for 2020 was 105.2 percent, including 103 percent in agro-industrial associations. In animal husbandry, 741 thousand tons of milk were produced, a growth rate of 103 percent compared to 2019. The gross milk yield in agro-industrial associations was 440 thousand tons, an increase of 3 percent. The following point is also noteworthy: during the implementation of the decree, many farms have improved their performance. For example, milk yields increased in Tolochinsky Rayagorservice, Kokhanovo-AGRO, Leonisheno, etc. Agricultural enterprises Dokshitsky and Rydomlsky can boast higher yields. The overall standard of farming has improved.
Funds are still insufficient
The head of the Orsha agro-industrial association, Maxim Bakurov, focused on the positive changes associated with working within the new structures:
— Our agroholding includes 4 processing enterprises, 25 agricultural enterprises, one grain storage facility with 34 retail outlets, 2 district agricultural services, and the Orsha poultry farm. First of all, we aimed to ensure the stable operation of the association and, on this basis, to improve the living standards of our employees. In alliance with processors, enterprises have gained the opportunity to retain their teams, jobs, ensure employment for about a thousand people, as well as a production base for further development.
To confirm his words, he cited the following fact: since October 2020, the enterprises of the Orsha association have no arrears in mandatory contributions to the Social Protection Fund of the Population and in wage payments. The overall financial condition of the enterprises has also improved. At the same time, Maxim Bakurov considers the lack of funds necessary for the reconstruction of livestock buildings, farms, and the purchase of agricultural machinery to be the main restraining factor for development dynamics. A striking example is the branch "SGC "Zadneprovsky" of Orsha KHP. Currently, it is the most problematic enterprise in the agroholding, due to the high degree of wear and tear of its pig-breeding complex. The facility is already 36 years old, which leads to many associated problems: a high energy component in the cost of production, a low level of productivity, etc. The costs in pig farming are not covered by profitable work in crop production and milk production.
Future plans
Vitebsk region strives to create maximally attractive conditions for work in the agricultural sector, enhance the industry's prestige, and reverse the situation with the personnel shortage. As before, one of the priorities will be the improvement of rural infrastructure, as well as the material stimulation of workers. Furthermore, the region links the further development of the agricultural sector with the development of large-scale production, the reconstruction of old and the construction of new livestock facilities, and the renewal of the agricultural machinery fleet, the high wear and tear of which limits the capabilities of the region's agrarians.
— Systemic solutions to existing problems will allow the region's agro-industrial complex to reach a qualitatively new level, ensure sustainable development, and create favorable conditions for the further development of production and export of key types of agricultural products and foodstuffs, as well as create new jobs in agriculture, increase labor productivity and wage growth,— is convinced Nikolai Sherstnev.
Source: http://vitebsk-region.gov.by/