22 april 2010

First Deputy Prime Minister Viktor Zubkov chairs a meeting of the Government Commission on agriculture

Participants:

Deputy Prime Minister Viktor Zubkov's opening remarks:

We have met today to discuss the draft of the national report on the implementation of the state agriculture programme in 2009.

We need to assess our achievements in 2009 and consider a detailed forecast for 2010 and proposals for the next year. The priority goal for this difficult period, when we are forced to cut government expenditures, is to maintain the momentum in agricultural development we have gathered in recent years.

Let's begin with 2009's results. Unfortunately, most of our targeted objectives were not achieved last year. The financial stability of the agricultural sector has diminished, although we increased allocations, including through the government's anti-crisis package. We must analyse where we fell short and why.

We will also discuss the Agriculture Ministry's development proposals for this year and forecasts for 2011. As for the targeted objectives for 2010 and 2011, it should be said openly that we will have to work towards them in a complicated economic situation. Although there are signs of nascent economic revival, we cannot expect a rapid return to large-scale pre-crisis budget allocations. At the same time, macroeconomic conditions have stabilised; we have slowed inflation and the Bank of Russia has cut its refinancing rate several times. The economic development forecast has been upgraded. These government efforts are creating an environment for positive growth in agriculture.

The government has created conditions for achieving the basic goals of the state's programme in 2010 through subsidised interest rates on short-term and investment loans, including for the purchase of Russian-made agricultural machinery and equipment. We are also subsidising 100% of the interest in dairy stock-breeding, providing subsidies to extended loans and budget support for pedigree stock-breeding, and ensuring the signing of inter-sectoral agreements on mineral fertilisers and fuel and lubricants.

It should be said that the food security doctrine stipulates new goals and longer-term planning in agriculture. We must ensure compliance with the criteria formulated in that strategic document.

To do this, the Agriculture Ministry, regional leaders and agribusinesses must raise the efficiency of their work by cutting expenses and using available capacity in the best possible manner.

I'd like to remind you that we have allocated sufficient funds for this; the sector has enough reserves and a considerable potential, and is a very attractive investment destination. It now must use this potential effectively.

As for the regions, the funds invested today, although they could be small in terms of their budgets, will create new jobs tomorrow, can increase tax deductions, and can ensure social stability.

Let's discuss these issues now, and listen to what the relevant departments, the regions and the Expert Commission have to say.