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Status of Productive Industry
Agroindustrial Complex
Over 20 thousand employees are working for the agrarian and industrial complex of the republic, including about 15 thousand people in agriculture; incomes, the level and way of life of rural population depend on the state of affairs in branches of agrarian and industrial complex, therefore, aspects of development of agrarian and industrial complex are important orientations of economic and social policy of the Government of the RK. Specific goals and tasks in realizations of the given trends are specified in republican target programs Development of Agriculture of the Republic of Karelia for the Period till 2006 and Social Development of Rural Areas till 2010.
Agricultural Industry
Increase in volumes of the state support of agricultural branch provided from the budget of the RK from 168,2 million rbls. in 2003 up to 251,8 million rbls. 2004 is specific contribution to its preservation and development. Taking into account means received from the federal budget, 272,8 million rbls. (197,7 million rbls. in 2003) was allocated in 2004 to support agriculture.
In 2004 new directions of state support of agricultural enterprises have been introduced, namely: partial compensation of renewal and increase of efficiency of milch herd costs, bringing out of crisis and financial improvement of enterprises, target subventions on purchase of breeding animals, incubatory eggs and young birds, elite seeds. Implementation of target programs proceeded: on development of agrarian and industrial complex, social development of rural areas, ecology and natural resources, fur farming, livestock breeding, seed potatos and increase of soil fertility.
In 2004 for the first time the budget of the RK allotted 3 million rbls. for compensation of expenses on crop production manufacture due to partial destruction of crop because of adverse weather conditions.
As a result of realization of a complex of organizational and economic measures it was possible to keep agricultural production and solve a number of social tasks, although not possible to stop the tendency of the further reduction in industrial parameters. In 2004 as a whole on the republic cost of production of all categories of facilities has made 2469,2 million rbls. or 87.5% to the level of 2003, including 1180,4 million rbls. or 85.5% on agricultural enterprises. It has been produced 11,8 thousand tons of meat (103.7% to the level of 2003), 70,3 thousand tons of milk (89.7%), and 66,1 millions of eggs (46.9%).
Livestock of all kinds of cattle continued to reduce, that is, first of all, related to liquidation of some large agricultural enterprises (Agro-Jakkima, Ltd., Shumgskoye Municipal Unitary enterprise, Svyatozerskoye Close Corporation), aas well as to drafting out low yielders. As a whole reduction has made 17.1%, 14.1% of including cows, 13.0% of pigs, and 12.7% of sheeps and goats.
Principal causes of reduction in total manufacture of milk was reduction of milch herd and insufficient provision of animals with forages manufactured by farms for the wintering of 2003-2004.
In 2004 fur farming enterprises raised 65596 young minks, polar foxes and foxes, that is 43% less than in 2003. By the beginning of 2005 fur farming remained only in two farms of Pryazhinskoye Close Corporation and Agrofirma "Vidlitsa" State Unitary Agricultural Enterprise.
Areas under crops taken up by potatos and vegetables, were 331 hectares and 95 hectares reduced accordingly in 2004 in comparison with 2003. The crop of potatos in all categories of farms was below the level of 2003 having made 114.8 thousand tons (84.7%), and the crop of vegetables has made 29.8 thousand tons (86.5%). Decrease in manufacture of potatos and vegetables is related to both adverse weather conditions of summer and autumn of 2004, and greater deterioration of agricultural machines and equipment. At the same time it is necessary to note positive changes observed in agriculture in the past year, which may become a good basis for stabilization of the branch.
In 2004 due to improvement of pedigree composition of the herd efficiency of cattle has increased. Milk yield per one cow has made 4010 kg, that is 294 kg more than in 2003. The highest parameter of the herd efficiency in history of dairy farming in Karelia has been achieved. Milk yield of over 5000 kg per cow have been received in Pryazhinskoye Close Corporation, Agrarnoye State Unitary Enterprise, Ilyinskoye State Unitary Agricultural Enterprise, Miinala, Ltd., ancillary farm of Kondopoga, Inc.
In 2004 enterprise have prepared 19,3 centners of fodder units per 1 conditional animal or 117% to 2003. The given volume will allow to provide the livestock available with forages during the entire winter barnyard period.
In operating poultry farms Kondopozhskaya Integrated Poultry Farm, Inc., and Priladozhsky Poultry Farm State Unitary Agricultural Enterprise production of eggs has increased 28% and 5% accordingly.
Korm (Forage), Inc., specializing on production of broiler meat has 66%increased production volume and has realized 2803 tons of fowl. In 2004 significant amount of works on increase of fertility of soils has been executed, and for these purposes almost 40 million rbls. of budgetary funds has been assigned, that exceeds the level of 2003 2.1 times.
In 2004 due to own means and republican leasing 22 enterprises have purchased 170 units of agricultural machinery and equipment, which cost has made 33,0 million rbls. Modernisation of cattle-breeding farms has been accomplished.
The balanced financial result of work of large and medium agricultural enterprises in 2004 has produced the sum of 9,9 million rbls. of profit (75,2 million rbls. of balanced losses in 2003). 27 organizations of the branch have received 88,8 million rbls. of profit (27 million rbls. in 2003), however, the share of unprofitable farms still remains significant.
In 2005 the Government of the republic will continue rendering state support to agriculture with a view of stabilization of the branch.
Food and Reprocessing Industry
In 2004 it was not possible to overcome slump in the food-processing industry production. Cost of commodity output produced has made 4,1 billion roubles. The index of physical volume has made 92.4%. Decrease in volumes of production has been observed in all branches of the food-processing industry, except for brewing. The greatest curtailment of production has occured in the alcoholic beverage industry and dairy industry. In comparison with 2003 the volume of manufacture of vodka and alcoholic beverage products (67.6% to 2003), animal oil (69.7%), and whole-milk produce (93.4%) has decreased.
The volume of production of fruit-and-vegetable canned food has grown 33.3%, production of meat has increased 28.1%, production of flour has grown 24%, and production of confectionery has grown 9%.
In theucture of branches of the food-processing industry the greatest relative density belongs to fish branch which share has increased from 35% in 2003 up to 40% in 2004. The catch of fish seafoods by the fish branch enterprises in 2004 has made 52,3 thousand tons (94.2% to the level of 2003), 45,1 thousand tons of commodity food production has been made, that exceeds the level of 2003 0.3%. Growth of commodity output has been provided due to 18.3% increase in manufacture of fish canned food. Enterprises of the branch have invested about 180 million roubles in development of production, as a result of reconstruction accomplished Sortavalsky Fish Factory Close Corporation has started production of crab sticks (1131 tons), that is a new kind of produce, and fish forcemeat - surimi (2531 ton compared to 386 tons in 2003).
120 organizations of the republic produce bread and bakery products. Their work allows to provide the population with bakery products in various assortment without fail. In 2004 cost of production produced by the baking branch enterprises has made 1059 million roubles.
Reduction in the index of physical volume in the flour-and-cereals branche is caused with the extremely astable work of Kondopozhsky Bakery Industrial Complex, Inc., that did not accomplish its industrial activity till August, 2004. As a result of measures taken both by the Government of the RK, and by the company management, manufacture has been renewed. In 2004 it has been produced 24% more flour than in 2003. Manufacture of mixed fodders has renewed also, agreements with the agricultural enterprises on their delivery are being completed.
In 2004 enterprises of alcoholic beverage industry below their opportunities having produced 422,6 thousand dl. of alcoholic production. Decrease in volumes of production of alcoholic production is related to reduction of volumes of production at Rossprtprom Federal State Unitary Enterprise, the branch of Petrovsky Petrozavodsk Distillery, that is caused by policy followed by Rossprtprom Federal State Unitary Enterprise and aimed at optimization of marketing activity of the branch. In 2004 the factory has mastered release of new kinds of alcoholic production. The milk processing shop in the settlement of Pryazha (Pryazhinskoye Close Corporation) works successfully having produced more than 2 thousand tons of whole-milk production, about 17 tons of animal oil.
Karelian Meat-Packing Plant, Inc., increases volumes of production, and expands assortment of production produced which totals about 140 titles. In 2004 the volume of production of sausage products remained at the level of 2003 and has made 2822 tons, release of meat semifinished items has gown 33% and has made 446.3 tons.
Medvezhiegorsky Milk Plant Close Corporation produces dairy production, meat semifinished items, bread and bakery products, and pasta. In 2004 release of whole-milk production has grown 9%. Construction of a milk processing shop in the settlement Louhi has been completed.
In 2004 the republic continued modernisation of enterprises of the food-processing industry. New technological lines have been put into operation at Petrozavodsk bread-baking complex, Inc., and Sampo, Inc. The modern line on manufacture and packing of groats has been started in Yarmarka Trading House. Slavmo, Inc., started production of mineral water and lemonades, and manufacture of iodinated milk and new kind of kefir has been mastered.
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