Viktor Zubkov read a message from President Dmitry Medvedev to Congress delegates and guests.
Mr Zubkov's remarks:
On behalf of the government, I would like to note that today is a remarkable event in the context of the grain sector's development. Many delegates are present. I have met with some grain producers in the regions. Real grain producers who cultivate the land are present here.
This proves that the new organisation is in demand, and that producers are ready to take an active part in managing the steadily developing grain industry. This is important. Russia already harvests sufficient amounts of grain. A total of 97 million and 108 million tonnes were harvested in 2009 and 2008, respectively.
This is the result of joint efforts by the state and by the active professional associations. The State Programme for Expanding the Agriculture Sector stipulates these principles of cooperation.
In the past few years, the government has done a lot to facilitate the sustained development of the agriculture sector. I will not list all the measures here. Prime Minister Vladimir Putin recently chaired a conference call on the spring sowing season. We have reviewed the agriculture sector's state support measures in great detail and have approved them each year. We have discussed many current problems which are now being resolved. The government has also passed additional measures aiming to reduce petroleum, oil and lubricants (POL) prices. Tomorrow, I will re-examine the cost of mineral fertiliser.
We must now streamline state regulation in the grain market. This is probably the most important issue today. We must launch systemic projects to improve the genetic potential of seeding material and layout guidelines to modernise infrastructure in the industry. Pavel Skurikhin, President of the National Union of Grain Producers, and I have chaired several meetings on enabling our producers to export grain via southern Russia, Far Eastern and even Baltic ports. This work is just being launched. We will work actively to promote grain exports.
The balanced development of the grain market is another important issue. Measures to cut production costs play an important role. We must create grain production incentives to promote demand. We must plan crop rotation schedules, take advantage of the commodities exchange and enlist the services of experts. Other issues include harvest insurance, as well as standardisation and technical regulation. Your new union will play an important role in resolving all these issues. The union will become another opportunity to assess the opinions of practical workers and experts for prompt adoption and well thought-out state decisions on all these issues.
The establishment of the union is a cooperative approach to industry issues that uses the input of large and small grain producers from every Russian region.
In addition to grain producers, livestock breeders are also here. Domestic grain consumption is another high-priority issue, due to be considered by you along with other unions and associations, including poultry, pork and beef producers. You must maintain close contact with them, and draft proposals for expanded domestic grain consumption for the government.
Although we continue to discuss much of this, some items still fall through the cracks. I noted this on the conference call. Last year, domestic feeding grain consumption fell by 300,000 tonnes. Some regions increase domestic grain consumption through expanded production, while others produce less grain. Work must be done in each region to ensure that large, medium and small businesses will see profitability in expanding livestock- and poultry-breeding. This promotes increased domestic feeding grain consumption. This is exactly what the grain industry needs. I am confident that the cost-effective work of your union can accomplish all this.
Your union must become a reliable state partner and an additional resource for objective information about the condition and prospects of the grain sector. You know better than anyone what your industry needs, what must be done and how business should be conducted to promote demand and sustainable profitability.
I would like to thank you for this invitation and say that I support the initiative of establishing the National Union of Grain Producers. Moreover, I would like to express hope that the new union's managerial bodies will function effectively and in a well-coordinated manner. Your union is headed by serious people. I think this will be an important factor of systemic cooperation between the state and your association.
I wish you every success. Thank you.