The cost of production in agro-industrial holdings will decrease by 8-10%

The cost price of final products in integrated structures (agro-industrial holdings) will decrease by 8-10%. This was announced today by Gennady Grebnev, First Deputy Chairman of the Vitebsk Regional Executive Committee, during a report on the main results of the region's socio-economic development in the current year and the region's development strategy in 2016 at a session of the Regional Council of Deputies.

Gennady Grebnev recalled that integrated structures (agro-industrial holdings) are being created in the region on the initiative of the Regional Executive Committee. There are five of them in total, and they are being formed on the basis of the Vitebsk Meat Processing Plant, Glubokoye Feed Mill, Orsha and Polotsk Grain Processing Plants, and Vitebsk Broiler Poultry Farm. It is expected that about 50 organizations from 17 districts of the region will be included in these associations - the majority of pig complexes, all cattle fattening complexes, and poultry farms. "It is expected that the annual volume of commodity production in the holdings will be about Br15 trillion, and the revenue volume for each structure will be at least Br3 trillion. At the same time, a decrease in the cost price at the initial stage of agricultural production is expected at the level of 15-20%, and for final products - 8-10%. This will increase the competitiveness of our goods in domestic and foreign markets, provide an opportunity to increase added value, and maximize profit from sales," the first deputy chairman of the regional executive committee shared his plans.

"The initiative has already received the approval of the head of state. In order to provide state support to the created integrated structures, a draft decree on some issues of agricultural production development in the Vitebsk region has been prepared, which is currently under coordination with interested structures. The adoption of the document will allow the monthly release of financial resources in the amount of about Br280 billion and solve current issues of the agro-industrial complex development," Gennady Grebnev reported.

Analyzing the state of affairs in the agro-industrial complex, he emphasized that currently 100 agricultural organizations in the region produce approximately 63% of the grain and 65% of the milk from the total regional volume, while the remaining slightly more than 30% are produced by 161 organizations. "Approaches are also being developed for the latter, including at the republican level, for their further development," said the speaker. This concerns the financial recovery of insolvent enterprises. "A change of specialization and owner, transformation of land plots, and judicial recovery procedures are planned," noted Gennady Grebnev.

Alena Tikhonova, BELTA.