First Deputy Prime Minister Viktor Zubkov chaired a videoconference with Russian Governors to discuss the implementation of the State Programme for the Development of Agriculture and the Regulation of Agricultural Produce, Raw Materials and Food Markets in 2008-2012 during this year's first six months. 

"The Government sees no grounds for revising the Programme's targets," Mr Zubkov said opening the meeting.

"In the current conditions, changing the targets would be premature. Moreover, I consider it highly important to preserve the dairy and meat production growth rates," Mr Zubkov emphasised.

According to the Deputy Prime Minister, the agricultural production index has shown a mere 1% growth in this year's first six months as compared to the 2008 indicators, while the Programme stipulates the growth rates at 3.9% by the end of the year.

"The growth rates are modest-about 1% - but they are real. Last year we had exceptional weather, and agricultural production volumes showed a record increase. This year the situation is different: There has been a cut in budget allocations, a fall in consumer demand and poor weather in a number of regions," Mr Zubkov said.

The State Programme for the Development of Agriculture and the Regulation of Agricultural Produce, Raw Materials and Food Markets in 2008-2012 implies livestock production growth at 5.1% and crop output increase at 2.8% as compared to 2008.

Yet, there has been an increase in production in 53 constituent entities; out of these, 18 regions have exceeded targets set by the programme for 2009, the Deputy Prime Minister said. In the Belgorod Region, agricultural growth rates show a 25% increase as compared to last year's indicators, while Novgorod and Voronezh regions have seen 17% and 13% rate growth, respectively. The leading 18 regions also reveal increase in livestock and poultry production, with the Belgorod Region showing a 31% increase in meat production, and the Altai Territory and the Novosibirsk Region have seen 27% and 13% growth, respectively.

Still, certain regions are showing a reduction in agricultural produce, Mr Zubkov said. Five regions have seen its production shrinking by over 5%, including the Republic of Kalmykia and the Smolensk Region, which have shown a 10% and a 7% drop, respectively, as well as Moscow, Vologda and Tula regions, which have seen agricultural production reduced by over 5%.

Mr Zubkov also mentioned a considerable reduction in the indicators of the State Programme for Purchasing Agricultural Machinery in this year's first six months, with a 47% drop in the purchase of tractors, a 40% decrease in fodder harvesters and a 38% fall in combine harvester threshers. "The issue should be discussed with representatives of Rosagroleasing and the Ministry of Agriculture, as I see no objective grounds that would explain such an sharp drop, given that this year's finances allocated for the purpose exceed those allotted in 2008 by 0.6 billion rubles," Mr Zubkov said.

At the videoconference, Mr Zubkov instructed the Ministry of Agriculture to thoroughly investigate the reasons for the fall in agricultural production growth, particularly in the regions that show a considerable drop in production, and to develop additional steps to support the Programme with account of the economic situation both in the regions and the entire country. According to Mr Zubkov, it is particularly important for the regional administrations to consider the most efficient ways of using the finances allocated from both federal and local budgets for the development of agriculture.