The creation of 4 integration structures of the agro-industrial complex is being completed in the Vitebsk region
By Decree of the Head of State No. 320 of August 25, 2016 "On the Development of Agricultural Production in the Vitebsk Region," the regional executive committee, together with the Ministry of Agriculture and Food, is instructed to reorganize OJSC "Vitebsk Meat Processing Plant," "Glubokoye Feed Mill," "Orsha Grain Processing Plant," and "Polotsk Grain Processing Plant" by merging 37 organizations into them in 2016–2017.
According to Alexander Kireev, Head of the Department for Reform and State Property of the Committee for Agriculture and Food of the Regional Executive Committee, the normative act essentially creates conditions for the formation of large-scale structures and contains two key provisions of fundamental importance for the successful implementation of the plan.
Firstly, it involves the restructuring of problematic debt on budget and credit obligations of organizations within the integrated structures. Today, all necessary work in this regard has been completed, and schedules for deferrals and installment payments have been drawn up, etc.
It should be noted that the decree provides for the transfer of enterprises' debt on short-term credit obligations to banking organizations to the regional executive committee at a rate not exceeding 3% instead of 30%, with a deferral of the principal debt repayment for 3 years, followed by installment payments over 2 years.
– In other words, the debts are not written off, but will be repaid, but for this, the new structures need to get on their feet, earn funds, and subsequently settle their obligations. And
so the situation looks like this: there are no settlements on debts, because there is nothing to pay with, – emphasized Alexander Kireev.The second key aspect of the decree is the approved list of organizations that are to be merged with integrator enterprises within 2016-2017. Today, a plan for the creation of integration structures has already been drawn up and approved by the chairman of the regional executive committee, Nikolai Sherstnev, which outlines the procedure and sequence of work on the merger of economic entities, taking into account their form of ownership, and responsible executors have been appointed. All merged enterprises will operate as branches.
– Each structure will turn into a large and strong market participant that can influence the situation and respond to rapid changes, while withstanding competition with global producers, – explained Alexander Kireev.
The formations will have over 300 thousand hectares of agricultural land, including 200 thousand hectares of arable land, which is 24% of the total land area. In the agricultural enterprises participating in the project, 26% of the regional cattle population, 22% of cows are kept. The new structures will include most of the pig farms and all cattle fattening complexes, as well as two poultry farms.
Today, the pace of structure creation is at the same level. Thus, the other day, the shareholders of the Polotsk Grain Processing Plant and the Gluboksky Feed Mill at extraordinary meetings made decisions on reorganization. The task is to carry out the procedure in accordance with the legislation.
The formations will have a single account, one governing body, which will determine common tasks based on the interests of all participants in the structure. In addition, it is planned to optimize the number of employees, in particular, to avoid duplication of functions, as well as with the automation of technological processes. The creation of new jobs is also envisaged.
At the same time, the main thing is to determine priorities and promptly solve accompanying problems that will inevitably arise, but should not hinder the process
integrations. Structures are created primarily to reduce costs, which will increase the competitiveness of the final products, and thus increase the profitability of the entities, which in turn will provide additional opportunities for development and improvement of the material well-being of employees. The advantage of the chosen path of transformation is the unification of technologically dependent enterprises that economically complement each other.– During the credit holidays, we must create efficient enterprises with a high production culture, implement modern technological processes, minimizing losses. And then, in three years, integration structures will not only be able to start settling their obligations, but also occupy a certain market share, and in the future become attractive to investors, – expressed his opinion Alexander Kireev.
Cooperative-integrated structure based on OJSC "Vitebsk Meat Packing Plant":
– OJSC "Vitebsk KhP";
– OJSC "Lepel MKK";
– OJSC "Lipovtsy";
– UP "Sovkhoz im. Masherova";
– UP "Svitino-VMK";
– UP "Sorochino";
– OJSC "Barseevo";
– OJSC "Lovzhanskoe";
– UP "Severny".
Cooperative-integrated structure based on OJSC "Gluboksky Feed Mill"plant":
– JSC "Glubokoye Poultry Farm";
– JSC "Glubokoye Dairy Canning Plant";
– JSC "Glubokoye Meat Processing Plant";
– JSC "Konstantinov Dvor";
– JSC "Verkhneye";
– UP "Za Rodinu";
– KUSKhP "Strinadki";
– Unitary enterprise based on the pig complex of JSC "Kamaysky-Agro".
Cooperative-integrated structure based on JSC "Orsha KHP":
– USKhP "Smolyany";
– Unitary enterprise based on the cattle breeding complex of KUSP "Nadezhino";
– KUPSKhP "Pervomayskoye";
– JSC "Orsha Poultry Farm";
– JSC "Redki";
– JSC "Orsha Cheese Plant";
– JSC "Orsha Dairy Plant";
– JSC "Orsha Meat Canning Plant";
– JSC "Mayak Vysokoye".
Cooperative-integrated structure based on JSC "Polotsk KHP":
– JSC "Polotsk Dairy Plant";
– UP "Titovo";
– UP "Povyate";
– JSC "Cheresy";
– JSC "Miory Feed Mill";
– JSC "Miory Meat Processing Plant";
– JSC "Banon-Agro";
– JSC "Bliznitsa";
– Unitary enterprise based on the pig complex of KUSP "Dunilovichi-Agro";
– Unitary enterprise based on the pig complex of KUPSP "Gorodets";
– Unitary enterprise based on the cattle breeding complex of JSC "Ushachi Rayagrosservice".
Sergey Antonov, "Vitebskiye Vesti". Photos from open sources.