Policy in the Field of the Agroindustrial Complex

To provide food safety of the region, employment of rural population, support of small and medium business Government of the Republic of Karelia is following government policy aimed at preservation and further development of agricultural production, fish-farming, as well as food and process industries.

The basic mechanism of the Government of the Republic of Karelia at conducting its policy of in the field of agriculture is government support of agriculture entities within the scope of the Agriculture of the Republic of Karelia Development of for the period through to 2010 regional target program and the State program of agriculture development and regulation of markets of agricultural production, raw material and foodstuff for 2008-2012.

In 2008 government support from the budget of the Republic of Karelia and the federal budget at the rate of 454,4 million roubles was rendered to entities of agriculture of the republic, that was 16.7% more than the level of 2007, the share of the budget of the Republic of Karelia in total amount of support has made 75%.

Funds the budget of the Republic of Karelia at the rate of 320,2 million roubles have been involved to finance support of agricultural production that was 15,4 million roubles more than the level of 2007, as well as sum 23,1 million roubles to support food and processing enterprises.

Funds of the federal budget at the rate of 96,5 million roubles, or 1.5 times more than in the previous year, have been involved in the republic for agriculture development. Entities of agribusiness industry, in view of the vested remainder as of January 1, 2008, have been paid 111,1 million roubles.

The basic volume of government support in 2008 was directed on development of animal breeding, having made 306,7 million roubles; besides compensation of part of expenses on payment of the involved credit and loan interests has made 90,5 million roubles, and 34,5 million roubles was allocated to support of the crop sector development.

Government support in the form of compensation of a part of credit interest rate has allowed agricultural enterprises to carry out agricultural extension actively, to modernize the machinery and equipment park. In 2008 there has been concluded 5 leasing contracts at the rate of 5,4 million roubles. Agricultural machinery, equipment, pedigree cattle have been purchased.

In 2008 Kondopoga Center of Grain Production, Inc., has received government support from the budget of the Republic of Karelia in the form of grants for compensation of a part of flour and mixed fodders production expenses at the rate of 14,8 million roubles that has allowed the enterprise to establish a discount of its wholesale-cost prices: 10% - to flour buyers, 5% - to buyers of mixed fodders. The enterprise has taken part in the state commodity interventions. Grain in the volume of 5805 tons bought at the exchange auction has been processed, flour was sent to baking enterprises of the republic.

In 2008, within the scope of realization of the School Milk program Slavmo, Inc., and Medvezhiegorsk Milk Plant Joint-Stock Company have delivered 798 tons of milk and 22,2 tons of fruit drinks to schools of the republic. Within the scope of the Healthy Way of Life for the Period from 2005 to 2007 and through to 2010 regional target program milk-processing enterprises have produced 12,0 thousand tons of dietary and vitaminized production (kefir, fermented baked milk with bifidus bacteria, iodized milk, etc.).

Implementation of the Social Development of the Countryside through to 2012 federal target program and theSocial Development of the Countryside through to 2010 republic's target program proceeded within the scope of which citizens, including young families and young experts living in the countryside, were provided with housing.

Gardening, farming and country associations of citizens acted an important part in production of potato, vegetables and fruits. In total in the republic there have been registered 673 noncommercial associations. In 2008 there continued support of infrastructure development in territory of associations in the form of grants from the budget of the Republic of Karelia. 18 gardening companies have taken part in competition, 11 of them were recognized winners, they were allocated 4,9 million roubles apiece.

Considering, that tense epizootic situation on the bird flu in the Russian Federation remains, in the republic there have been vaccinated 38 845 head of poultry, the bird flu-producing factor has not been revealed in territory of Karelia.

From the epizootic point of view the Republic of Karelia is one of the most safe regions of Russia regarding the majority of infectious diseases of animals. The number of areas, unsuccessful on bovine leukemia, was reduced in 2008 from 8 to 6.

Special attention in the republic was paid to development of enterprises of commodity fish breeding. Enterprises of various patterns of ownership are engaged in trout-breeding in Karelia, trout-breeding farms are located almost in all regions of the republic and use water areas of 69 reservoirs of the republic.

In 2008 work on creation of new fish-breeding facilities continued. The number of operating facilities has increased in comparison with 2007 by 2 enterprises and has made 47. Industrial activity was started by Ladoga Trout, Ltd., on Ladoga lake and Ecology Product-10, Ltd., on Peldozhsky lake trout farms.

To promote production of local commodity producers the fourth Karelia Agro Expo 2008 agroindustrial exhibition forum was held. Besides, agricultural enterprises of the republic have taken part in the 10th anniversary Russian agroindustrial exhibition Indian Summer-2008 in Moscow. Kivatch trout facilities has once again won the Foods competition in the nomination For Producing High-Quality Food. The gold medal is received for producing Trout. Amber Back.

In July, 2008 Karelian growers of agricultural produce as a part of the uniform stand they have taken part in the Farmery agricultural exhibition in Finland. Visitors of the exhibition got acquainted with national traditions of Karelia, products of processing industry, development of agriculture of the republic. Weekend fairs were held in the city of Petrozavodsk and 12 metropolitan regions. The 14th Agricultural Fair of the republic was held from October 3 to 12, 2008.