Deer-Breeding

The state of the branch
Along with sea-mammal hunting, deer-breeding is a basic type of activity of the aboriginal population. In 2004, 869 people were engaged in the branch (compare to 693 people engaged in the coal industry in 2004).

The size of the population and reproduction of the aboriginal folks of the Extreme North is directly dependant on deer livestock. Only in the deer-breeding branch does not the aboriginal population have any professional competitors among the emigrants. This way support of deer-breeding is a necessary condition for preserving the Chukot ethnic community and its traditional civilization.

A program of the Okrug Government aimed at providing conditions for the development of the agricultural complex has been under way since 2001. Within its framework, the first exchange of pedigree deer between the "Kanchalanskoe" and "Vaezhskoe" deer farms of the Anadyr District and the brigades of Providensk was organized. Moreover, Hatyrskoe farm of the Bering District received a delivery of 1000 pedigree deer from the Koryatskiy AO.

Sustaining traditional deer-breeding is not only a social mission of the government of the Okrug, but an important economic task. In 2006, the number of deer amounted to over 154 heads, and the branch has following characteristics:
  • It comprised 0.2% in the structure of the economy of the CHAO;
  • Yielding 25.6 million rubles of profit per year; and
  • 16.1% of growth of the livestock per year (by 18,258 heads in 2005).
The sickness rate of deer dropped by 17%, and the death rate decreased by 39%. These are the best figures in the last 20 years.

With its livestock size, the Chukotskiy AO takes the second place in Russia after Yamalo-Nenetskiy AO and is leading with its livestock growth rates.

Investment perspectives
In 2006, industrial slaughter of deer (12 thousand heads a year) is going to be resumed in the Okrug. It was previously banned by a 5-year moratorium of 2001.

Modern slaughter stations, first of which will start operating in the village of Kanchalan in September will make it possible to produce 220-240 tons of deer meat a year in the conditions which comply with all sanitary and goods standards and minimize the transport costs of sale of big consignments of deer meet outside the region. Compared to other deer-breeding regions of Russia, Chukotka is located within favourable reach of the main outlets of the Asian Pacific Region countries.

The promising economy of the North deer-breeding is determined by following factors:
  • According to the experts, the organization of industrial slaughter of deer and development of the production infrastructure in the port zone will allow for an increase in the annual profit from deer-breeding up to $4.7 million by 2020.
  • North deer-breeding does not imply any costs of fodder;
  • The branch is almost wasteless: apart from meat, fat and other food products, deer farmers make "panty" and ossified horns, tanning raw materials (skin and "kamus"), and the products of its advanced processing are used in pharmaceutical industry (biologically active additives, blood serums, etc.), clothing, and souvenir goods;
  • Potential growth of demand for deer products in the domestic market: the consumption of deer meat even by the aboriginal folks of the Extreme North in 2001 accounted for 21% of the scientifically established norm for the country. In 2004, the rate reached 41% in the CHAO, and the growth trend still remains;
  • Stable growth of demand for delicacy and organic food in most developed countries makes it possible to export deer meat. The international market is open for supply;
  • The ideology of a healthy way of life makes the production of biologic additives profitable. And deer farmers are ready to offer cheap and quality raw materials.
With the world tendency for the decrease in the population of North deer, Chukotka is likely to take leading positions in the branch in the middle term. Chukotka is the only world region where livestock of domestic North deer is growing. Compare: between 1992 and 2001, the North deer livestock dropped by 3% in Norway, 2% in Alaska, and 6% in Russia. Between 2001 and 2003, the deer livestock decreased further by another 4%.

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COMMENTS
First of all, the long-term program leans on resources of peninsula. Let’s begin that geological resources of Chukotka are explored today on 10 %-17 %. The next regions are explored much better. And even on these, tentative estimations resources here can be found. The proved resources of gas on the Priosernoe deposit - 7,3 billion cubic meters. Oil resources are estimated approximately in 10 million tons, the proved stocks make 4 million tons of them. They are dispersed on small Fields, such, as Hatirskoe, where extraction is conducted by "Sibneft" company. But it is not necessary to dismiss a shelf – it’s insufficiently studied yet, but there are data, that it’s resources can make up to 14 billion tons of conditional fuel. Exxon Mobile Company in similar ice conditions, in Baffin bay has constructed 7 platforms. What prevents to construct them here?
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There was a moratorium on an industrial slaughter of deers in district till 2006. But now it is removed, farms have allocated a contingent for commodity slaughter this year. It is planned to hand over in a trading network about 9 thousand deers this year. Within the limits of national project the agrarian and industrial complex have got slaughter area on terms of financial leasing which is assembled in Kanchalan. Basically its value is in that correctly cut production will receive a trade look and will answer all established norms. The livestock of deers for September, 1st - from above 183 thousand. It’s below the level of 1990 (490 thousand heads), nevertheless, in Chukotka a livestock grows on faster rates, than on Yamal, and it’s our main competitor. Potential market - not only Vladivostok, but also Japan, Korea, China. Reindeer breeding is, at least, preservation of a traditional way of life of native people and food safety of region and when sales volumes become great enough, branch can turn in profitable.
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