Meeting participants discussed the draft national report on the implementation of the 2008-2012 State Programme for the Development of Agriculture and of Commodity and Food Markets in 2010. Opening the meeting, Mr Zubkov said, in part:

"Today we'll review the results of the past year and the forecast for the agricultural sector's development for this year. The government allocated 122 billion roubles for the state programme in 2010, which made it possible to exceed by 4% the planned growth rates for cattle and poultry production. For the most part, this was achieved through the high growth rates in poultry and pig breeding (111% and 106% respectively). We have also met the adjusted targets for the federal targeted programmes 'Social Development of Rural Areas' and 'Fertility'.

"The government increased its financial support for agriculture in response to severe droughts in 43 regions. It transferred to the industry 25 billion roubles in budgetary loans and 10 billion roubles in direct subsidies. The government increased the charter capitals of Rosagroleasing, United Grain Company and Rosselkhozbank by seven billion roubles, and extended the term of subsidised loans to three years. It also established a 50% discount on the rail transport of grain from the country's southern regions and Siberia. These measures helped agricultural companies remain financially stable. The profitability of agricultural producers of all categories fell by just one percent – from 9.4% to 8.3%.

"At the same time, due to the past year's abnormal weather, overall agricultural production was 16% below the target set in the state programme.

"The country did not meet the majority of targets on crop cultivation. The plan for milk production was 91% fulfilled. Sales of pedigree cattle grew by 4%, against 15% under the plan. Labour productivity was 91% of the target.

"Our goal for the current year is to achieve the state programme's parameters. Taking into account the difficult conditions, the government found additional funds to guarantee this in 2011. Reduction in production costs, better electricity supply for industry and increased investment should help us reach this goal."

Following the discussion, the commission approved the draft national report in general. The Government Presidium will review it at its next meeting.

Meeting participants also discussed the spread of African swine fever (ASF) in Russia – an issue the commission reviews every month. Its members noted the continued deterioration in the situation, with three more ASF hotbeds identified. They instructed the Ministry of Agriculture to improve interdepartmental coordination and speed up work on the new edition of the Law on Animal Health and on amendments to the Code of Administrative Offenses to increase liability for violations of veterinary laws.