Support for agriculture in Irkutsk region

| Foreign Markets |

Despite challenging weather conditions of the Siberian climate, agriculture in Irkutsk region continues to develop. In 2014 the volume of crops in the area exceeded 850 thousand tonnes. Cereal production has grown by 38% over the past three years!

Program of substituting imported food

Market experts estimate that the value of agricultural goods imported by Russia in 2014 was smaller by 10 billion dollar than in the previous season. Representatives of the Russian administration believe that the trend provides favorable conditions for the development of domestic agricultural production.

In 2016 the joint value of investment in Irkutsk Oblast agriculture is expected to reach 10 billion ruble from the federal budget and 3 billion ruble from the regional budget. The Governor of Irkutsk Oblast informed that a network of agricultural technology parks is scheduled to open in the region in 2015. The project involves the construction of modern granaries, pig farms, dairy farms, greenhouses, slaughterhouses, transport and logistics centers, as well as other facilities. 80 new farms are to be created in 2015, with a view to provide local inhabitants food which is affordable and produced locally. 46 million ruble in the regional budget has been assigned for the purpose.

Aid for beginner farmers

A program of support for farmers who are beginning to run their own businesses was launched in 2012. The program includes the provision of subsidies of 1.5 million ruble to create and develop individual farms. In 2014, 98.5 million ruble was assigned to the purpose, including 52.4 million from the federal budget and 46.1 million from the oblast budget. At present there are about 3,500 farms in Irkutsk region. They employ over 10,000 people.

Providing food security for the Russian Federation

Despite recent efforts, the domestic agricultural production in Russia satisfies as little as 60 percent of the demand. The country depends on imported milk, meat, fish, fruit and vegetables. Nearly 80 percent of the apples on the market are imported. On the other hand, experts estimate that the total support provided by the Russian state to the farmers is six times lower than in the USA, 14 times lower than in EU countries and 10 times lower than in the neighboring China.