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Prime Minister Vladimir Putin holds a meeting on Russian livestock farming in Tambov

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Livestock breeding is the fastest growing agricultural sector in Russia.

Over the last six years, this sector of the agro-industrial complex has grown by 22.5%. Profitability of the industry increased from 7.3% in 2005 to 8.2% in 2011, including an increase from 13.4% to 16.8% for milk and from 18.3% to 20% for pork production. Commercial loan investments totalled 576 billion roubles. Over 120 billion roubles were allocated for interest rate subsidies. About 3,500 livestock facilities have been built and refurbished, including 744 facilities for pork breeding, 446 facilities for poultry breeding, 297 facilities for beef cattle and 1,942 for dairy cattle breeding. As a result, there was a 36% rise in meat production for the period from 2006 to 2011. There was a 90% growth in poultry production and a 40% growth in pork production.

The leaders in terms of production are Belgorod, Moscow and Chelyabinsk regions, the Republic of Tatarstan, the Republic of Bashkortostan, Krasnodar Territory, Stavropol Territory and Atlai Territory.

Beef and dairy cattle breeding are still the key segments in livestock rearing. They are the most investment intensive with long periods of financing and payback, and requiring special support measures.

Currently, beef liveweight production is stable at 3 million tonnes, milk production over the last six years has risen by 1.8% and is estimated at 31,634 million tonnes.

There have been major improvements in beef and dairy farming. The main trends are:

• the proportion of breeding cattle is increasing (from 41% in 2006 to 60% in 2011 for beef herds and from 7% to 11% for dairy herds); 
• due to the qualitative changes in the composition of livestock, and the replacement of less productive breeds, the average milk yield rose by 20% and output increased from 56.5% to 61%. The proportion of specific competitive beef breeds in meat production increased from 2% to 6.5%; 
• in 2011, the long-term downward trend in cattle farming was halted for the first time in 20 years.

Economically important regional programmes play a very important role in the development of the livestock sector.

In 2011, some 74 programmes received federal support amounting to 4.39 billion roubles. Regional budgets allocated 6.9 billion roubles. In 2012, financial support for regional programmes will continue.

Under the current rate of production, the food security doctrine indices for meat will be met within the next 3-5 years. After the implementation of current and future investment projects, beef production is expected to rise from 2013. Self-sufficiency in milk production (85%) is expected from 2020.

These targets can be met if the following five key objectives are addressed:

• continued modernisation of cattle and poultry meat production;
• strengthening Russian livestock capacity through the formation a competitive breeding base;
• attracting more investment into dairy and beef production;
• minimising the risks for the industry as a result of joining the WTO;
• providing additional support for the development of deep processing of livestock products.