Vladimir Putin's opening speech: 

Good afternoon,

We have gathered here once again. I say "once again" because we are planning to discuss the problems of agriculture in this country on a regular basis.

This is a befitting place to meet because agriculture in general and cattle breeding in particular are doing well in the Belgorod Region. The region is demonstrating stable and positive progress in agriculture, and especially, in cattle breeding.

The region's policy regarding agricultural production is aimed at consistent industrialization, and formation of effective organisations based on innovation technology - from grain and fodder production to the processing and sale of the finished produce through the trade network.

The company where we are now is a good example of this approach. Viktor Linnik {president of Mirotorg Holding} provided a detailed account of its performance today, and we have seen it for ourselves. I hope the organization of the Korocha pig farm has been explained to you. Its modern production lines are based on the latest technology, and it is well built. The managers are as competent as their European counterparts. I believe they are ahead of them in many respects.

The financial organisation is streamlined; people are motivated and work with a high pulse rate. I am very impressed by the attitude of the owners. It seems to me they have adopted a very sound approach, and will set a positive example for others.

I have heard a good formula: we know that we will do quality work if our produce is bought. This is very true. Therefore, we will not strive for extreme profits, but will work at a level of profitability which is acceptable for the whole chain and for the end user. This is absolutely the right approach.

I must say that the last few years have seen positive changes in domestic cattle breeding. I hope this is a result of the Government's efforts and the entire economic community, to use a modern phrase, that is, of all those who have been working in this field for many years. You are familiar with many of those present.

You remember how we started some six to seven years ago, when we first spoke about animal husbandry at one of our meetings. We formulated the Government's policy in this field on the basis of your proposals. I would like to emphasize once again that it was at your suggestion that the programme to develop the agro-industrial complex has become one of our priority projects. This allowed us to attract not only government but also private investment.

The introduction of easy long-term loans has helped agricultural producers considerably. More than 300 billion roubles worth of loans have been granted for the construction and rebuilding of animal processing farms.

It goes without saying that all of us are going through rough times now. The crisis is making it more difficult to carry out projects. Nevertheless, as you know we have made a decision that all the construction projects which have been started must be completed. The Ministry of Agriculture and the banks have granted an additional 74 billion roubles worth of loans for incomplete investment projects in livestock breeding.

According to statistics, domestic agriculture, including meat production, is faring better through the crisis than many other industries. Still, this is no reason to relax.

Cattle breeding is one of the most important branches of the domestic agro-industrial complex, and has the highest level of capitalization. At the same time, it is one of the most problematic fields with quite a few bottlenecks.

Last year, domestic demand for meat was ahead of domestic production which, regrettably, has compelled us to be stable importers of meat products.

The Government is making a big effort to regulate imports with a view toward supporting domestic producers. I would like to emphasize again that this is being done at your suggestion. We are asking you straight out which imports to hold back and to what extent. However, we must retain some imports to meet domestic demand, primarily in the interest of our consumers, and of the producers as well.

I recall Valery Kustov {chairman of the Efko Council of Directors} saying the import of a specific vegetable oil was complicated, if not banned all together. It transpired that they had done too much. Now they are short of something themselves. We will discuss this in more detail.

You are aware of the reduction in the above-the-quota import tariff rate on beef, a cut in the tariff quota on poultry, and an increase of above-the-quota import tariff rates on pork and poultry - from 60% to 80%.

At the same time, as I've said, we should not forget about the interests of consumers. Protection of the domestic market should not lead to shortages or unjustified price hikes.

Government support for domestic meat producers should provide the framework for a fair trade policy domestically. Adoption of a law or other acts on trade regulation could become a major incentive here.

Buildup of the pedigree potential is a priority for the continued development of livestock breeding. Work on amendments to the law on pedigree cattle breeding is nearing completion. Experts are discussing technical regulations, determining requirements on meat, on meat products, and on poultry. I believe scientists and businessmen should actively join the efforts to resolve these issues.

It is also important for regional leaders to react promptly to the demands of this industry. It is necessary to implement innovative programmes to develop animal husbandry on a timely basis, to assist farms to receive land for breeding animals, and to produce enough fodder for them.

Needless to say, it is necessary to maintain the infrastructure, roads, and water and energy supplies.

Obviously, the development of a competitive meat processing complex in the agro-industrial sphere requires modern infrastructure. We have spoken about this, using this facility as an example. Promptly reacting to the needs of business, the region's leaders rendered substantial aid.

Given the way the current process is structured, it is essential to secure cooperation between major meat industry companies, on the one hand, and medium- and small-sized business, on the other. Development of cooperation oriented to the demands of small farms must become a separate task. These farms produce almost half of all meat and milk.

People who are involved in them should have an opportunity to sell their produce at a profit, and without extra costs or delays. Obviously, the state is obliged to assist in this.

I hope that today we will discuss in detail what measures must be taken for the further development of cattle breeding in this country. I am looking forward to hearing your remarks, recommendations, and proposals.