Prime Minister Vladimir Putin held a meeting on the preparations for and the start of the grain harvesting season in 2009
Vladimir Putin's opening speech:
Good afternoon,
Today, we will discuss in detail the organisation and process of autumn field work, and will analyse the general condition of agriculture, in particular, its contribution to the domestic economic development and the consolidation of its export potential.
I must admit that despite the difficult economic situation in the world, including here, our agriculture is showing considerably good results. Cultivated hectarage is growing. About 2.4 million hectares of land were put under the plough last year alone. The trend continues this year. In tentative estimates, including autumn sowing, the figure this year may reach 2 million hectares. Major investment projects, primarily in livestock breeding, continue to be carried out.
Now it is very important for us to maintain these positive trends, to not lose everything that has been achieved under the national project and the state agricultural development programme.
This is why we have allocated substantial funds to support agriculture this year. Together with the anti-crisis measures, it will reach a record 182 billion roubles. Members of the Government personally dealt with the issues of holding bank investments and loans at the same level, and securing stable supplies of fuel and fertiliser at affordable prices.
As a result, agricultural producers purchased the required amounts of fuel and lubricants in a timely manner. Let me point out that rural fuel prices were fixed at the low level of January 15, 2009.
Today, we will discuss how to guarantee reliable supplies of fuel and lubricants in the second half of the year, during the harvest and other autumn field work.
I will tell you up front that we have agreed on a proposal with the oil industry: starting July 1 of this year oil products will be supplied to agricultural producers at fixed rates and at fixed discounts - 10% below the wholesale price. This will allow producers to save up to 5 billion roubles.
I am assuming that agricultural producers will in turn provide produce to oil industry cities and rotational villages at a discount. Representatives of the ministries of Agriculture and Energy should set up a working group to this end.
I would like to hear today about the state of affairs regarding the purchase and delivery of domestic farm equipment to agricultural companies.
As you remember, at the initiative of both the Ministry of Agriculture and the Ministry of Industry and Trade, the Government decided against importing equipment with federal funds. This was its anti-crisis measure to support the agriculture equipment manufacturing industry.
In effect, our machine manufacturers insisted on this.
Last year, Russia gathered a record harvest of more than 100 million tonnes of grain.
Obviously, nature will not allow us to repeat this feat this year. However, the forecasts for the coming harvests are optimistic. They are good. Grain production is expected to surpass domestic demand, which will allow us to retain a substantial export potential.
All these facts show that in the last few years, agriculture has gained a margin of safety, which allows it to survive changes in the world market, and most important, to continue to develop in new conditions.
To guarantee an adequate future for this year's harvest, the Ministry of Agriculture should establish an adjusted balance for grain specified for different types of crops, and use it to draft measures for effective, and most important, timely regulation of the grain market. This applies to both interventions and prices. Incidentally, prices have already been announced, as you know.
I would like you to report to me today about the progress of this work, and the infrastructure's capacity to accept and store the grain of the next harvest.
The work of the industry as a whole and the financial indicators of individual companies will largely depend on how effectively the Ministry of Agriculture acts. The main goal is to make sure that agricultural producers sell their harvest in a timely manner and at a profit. The state should guarantee this opportunity. Producers must be confident that their labour is required and will be fairly paid for, and in a reasonable time.
Now I would like to say a few words about more distant prospects. Russia will continue striving to be an active part of the global grain market, but at the same time we must expand domestic consumption and use the potential of crop harvesting to build up the production of goods with greater added value, including milk and meat and to increase the cattle stock.
When I was flying over the farms of the Krasnodar Territory, I was certainly pleased to see the condition of the culture of our agricultural production. I hope the achieved rates in livestock breeding will be maintained. In recent times we have focused on this and have achieved good results in dairy and beef stock breeding and in hog farming.
