Putin: Higher equity production subsidised imports replaced

Putin's instructions to replace agricultural imports by increasing the Autoproduction.

The Russian Prime Minister Putin has responded to a number of entrances and public letters to the lifting of import restrictions with a wage subsidy program. In a commentary he was convinced that the modernization and the construction of agricultural companies are as far as possible, to replace food imports. Is done with the help of government subsidies, which are so designed, that they are to bring the WTO rules in accordance. The participation and the independent companies to being expressly intended foreign investors.

The State-owned Rosselkhozbank has promised to follow the orders of the Russian President. To be inserted in the next few years--more than in the past already - State assistance in various areas of inadequate food supply.

In the past, the poultry meat production in the companies financed by the Rosselkhozbank to 4.3 times was increased, while the rest was part of the industry that fold increase about the 2.7. Self-sufficiency has risen to about 95%.

In the pork sector, an increase that was 3.5 times, the rest of the industry (mainly backyard attitudes) declined by 80%. Self catering is less than 80%.

Put that 2.7 times the milk sector to the remaining 1.3% decreased. Self-sufficiency is estimated at an average of 70%, however the individual milk products significant differences from the fresh milk supply is to the loss-making cheese and milk powder market.

In the beef and veal sector has been a 2.1 times increase, while the remaining portion to less than 10% fell back. With over 1 million tonnes of beef imports, Russia is one of the world's largest importer. The self-sufficiency rate is 58%.

Would be if made with the self-sufficiency efforts seriously, should in 1 line of beef or dairy sector are supported. Only in 3. Place the pork sector would be. The poultry meat sector ranked at the end. The previous priorities lay exactly otherwise. The private sector is primarily interested in industries with a rapid period of capital envelope. There was little interest for the beef and dairy industry.

A reversal of the priority investment behaviour should be challenged by exceptionally favourable conditions of subsidy. This would be the pig industry but still on the rear seats. Not would accounted for in this way the current urgent needs in this sector.

The perhaps program shows to hold the firm will, to the restrictive import behavior in any case. This is a clear signal to the EU is not on the transport-related export to Russia to leave. The message also goes to the farmers, not too much hopes for improvement in sales toward Russia neither short nor long term to install. Unless a new Russian Government with a different mentality came to power!

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