“Agricultural sector development”

Acceleration of livestock-breeding development

Government the Chukotka Autonomous Okrug (CAO) is mostly concerned with supporting deer-breeding, as it is the basic agricultural industry in the Okrug. Many of the measures envisaged in the national project had elaborated upon in Chukotka long before they were developed on the federal level.

Thus, already in 2003 local authorities expressed the idea of necessity to accelerate development of livestock-breeding. The “Support of the CAO Agricultural Sector” Regional Target Program was adopted and carried out in 2003-2005. 851 million rubles were allotted to this purpose in the regional budget, which allowed to increase deer population by 59,700 head in two years. Presently the number of reindeer in the region amounts to 154,300 head, 6,000 of which are in private ownership.

The national project will be implemented via a Regional Target Program “Governmental Support of Agricultural Production in 2006”. Regional budget’s share of financing this program will is 372.9 million rubles.

The “Agricultural Sector Development” National Priority Project assumes a wide application of leasing schemes in agriculture. The Administration of CAO and Rosagroleasing Ltd. are now negotiating supplies of pedigree deer to Chukotka farms on conditions of financial lease.

One result of such leasing schemes use is supply to the settlement of Kanchalan of modern equipment for slaughter and primary procession of deer. This equipment by a Finnish company “Kometos” is expected to be put into operation in September 2006. In the future this industrial slaughter center due to convenient communication between Kanchalan and Anadyr via the Kanchalan river will allow to supply venison outside the CAO.

Stimulation of smaller economic management forms in the agricultural sector

The main form of supporting private and cooperative farms envisaged in the national project is funding of credits taken by agricultural manufacturers.

Crediting of farmers in the region is complicated because the “Rosselkhozbank” (“Agricultural Bank of Russia”) has not got a single subdivision here. Another problem is that the priority national project is oriented at supporting farmers and smaller private agricultural ownerships and cooperatives and does not regard village community which is the main economic unit of the regional agricultural sector as an economic entity.

The Okrug Government has sent to the Russian Ministry of Agriculture a petition for inclusion of such communities into the legal sphere of the national project.

Provision of accommodation for young specialists working in the countryside

In 2006 it is planned to distribute 22,000 m2 of housing accommodation, which will help 49 families to improve their housing.

On March 17, 2006, the CAO government made an agreement with the Russia Ministry of Agriculture regulating separation of responsibility in this sphere.