The first item on the agenda is a national report on the progress and outcomes of the 2023 implementation of the State Programme for the Development of Agriculture and the Regulation of Markets for Agricultural Products, Raw Materials, and Food.
Mikhail Mishustin’s opening remarks
Government meeting
Oksana Lut delivers a report at the Government meeting
Government meeting
Government meeting
Mikhail Mishustin:
Good afternoon, colleagues,
Today on our agenda is the national report on the implementation of the state programme for agricultural development over the past year.
As required by law, the Government will submit this report to the State Duma. Together with the legislators, they will determine the most effective tools for achieving the national goals set by the President.
We discussed this in detail during the recent strategic session. Our priorities include increasing production output in the agro-industrial complex by 25 percent by 2030, boosting exports by 50 percent, and raising investment in fixed assets by 60 percent. Additionally, ensuring the technological independence of the industry remains a key goal. All these targets are achievable.
As the President noted, despite external challenges, the market for products from domestic agricultural enterprises is expanding not only in quantity but also due to the high quality of our food products.
This is evident in the concrete performance results for 2023. The level of food security continues to systematically increase. We have sufficient supplies of grain, meat, sugar, fish, and vegetable oil for both domestic needs and exports to our international partners.
The yields of vegetables, potatoes, and fruits have noticeably increased, with an approximate 11 percent growth. Our logistics capabilities have also expanded, now able to simultaneously store hundreds of thousands of tonnes of these agricultural products.
We have seen positive developments in other areas as well. Over the past year, we have put into operation 49 new or reconstructed cattle breeding facilities and over 170 dairy farms and complexes. Importantly, the processing of raw milk has also increased, a topic frequently discussed with State Duma deputies.
Additionally, we continue to support farmers with agricultural equipment. Nearly 17,000 tractors and combine harvesters have been provided through leasing or preferential lending programmes.
The agricultural insurance system is also developing: in 2023, in extended to 69 regions. It makes possible for farmers to cut their costs, including those due to emergencies.
Human resources are being actively trained for the industry: over 270 educational programmes have been developed as part of vocational training. Of course, we need advanced specialists who are good at modern technologies.
Agricultural tourism projects are becoming increasingly popular. Grants as a support instrument have been in effect for only three years, but over the past two years the facilities created by their receivers have been visited by almost 500,000 people.
Last year, over 440 billion roubles were allocated to implement the state programme.
Minister of Agriculture Oksana Lut will explain this in more detail today.
Another important measure.
We continue to help regions to make living conditions there more comfortable, provide more high-quality medical assistance, modern education, a chance to do sports and visit cultural events. This task is among the Government’s priorities. The President has highlighted it.
Today we will discuss the allocation of over 3.7 billion roubles to create about 20 infrastructure facilities in several Russian regions. The bulk will be go for the construction of medical organisations, which is highly needed, such as a multidisciplinary medical centre and hospitals, including children’s hospitals. Thanks to this financial support, the construction of several of them will be completed this year, for example, an infectious diseases building of the Goryachev Ulyanovsk Regional Children's Clinic which we visited about three years ago. It is a large institution, which is important for all the people living in the region and where specialised assistance is provided even to infants.
I would like to ask the Construction Ministry and the Health Ministry to strictly monitor the expenses, work processes, and deadlines in this area. These are organisations that save lives and health, including those of our children.
Now I will speak briefly about the support for technological sovereignty projects.
We had a detailed discussion of the necessary mechanisms at strategic sessions. We are actively working to develop an entire range of national projects in the fields of healthcare, new materials, and energy, which will give us the opportunity to enhance the country’s technological independence for many years to come.
In order to do this, we must first of all increase the volume and expand the list of chemical products manufactured in Russia. The sector is developing actively. Last year, the production of small- and medium-tonnage chemistry exceeded the level of 2020 by more than a quarter, and this year we will maintain this trend.
At the President’s instruction, we will allocate over 0.5 billion of roubles to the country’s leading scientific organisations that will establish the production of chemical products in small volumes. Funds will be allocated through grants to develop technological regulations and design documentation.
These small-scale production facilities will cover the needs of many Russian enterprises in various sectors, starting from healthcare to automotive industry. As a result, the positive economic effect will be twice the investment.
Overall, almost 10 billion roubles have been allocated for these purposes over the past three years, which will help expand the instrument base of educational and scientific institutes and laboratories, as well as train new generations of engineers and researchers and, of course, ensure reliable supplies of Russian raw materials.
Let us get down to the discussion.
I would like to invite Minister of Agriculture Oksana Lut to speak on the first issue. Please, you have the floor.
Oksana Lut: Mr Mishustin, colleagues,
I would like to present the national report on implementing the State Programme for the Development of Agriculture in 2023.
First of all, I would like to note that all key indicators of the state programme were achieved last year, namely the agricultural production index, the foodstuffs production index, agriculture sector wages, agricultural produce exports, as well as the import substitution index. The Ministry of Economic Development estimates that the state programme of the agro-industrial sector is ranked fifth in terms of its implementation effectiveness.
I will now inform you about achieving each goal.
According to preliminary Rosstat data, agricultural production expanded by 10.2 percent last year on the basic 2020 year. The plant-growing sector expanded production by 15 percent due to the 2023 harvest. I would like to recall that the 2023 grain harvest volumes became the second largest in the country’s history and reached about 150 million tonnes, and we achieved record-breaking levels in multiple spheres.
The livestock-breeding sector expanded production by 3.4 percent on 2020 levels, with all of its main spheres posting an impressive production growth.
Agricultural produce volumes allowed for expanding production in the food and food processing industry by 11.6 percent on 2020.
We raised production of vegetable oils, cheese brands, canned fruits and vegetables, sugar, cereals, and other products.
Mr Mishustin, as you have noted, food security levels continue to increase. We have attained the doctrine’s threshold levels in terms of grain, vegetable oil, sugar, meat, potatoes and meat products.
The 2023 production results allowed us to considerably expand import substitution volumes. The relevant index totalled 117 percent, and we reduced our dependence on imported dairy products, vegetable oils, vegetables, melons and gourds, flour-based products, cereals, and seeds.
Furthermore, the agriculture sector’s wages increased by 16 percent in 2023, reaching 54,600 roubles. I would like to note that our sector’s wage growth rates are among the highest among all economic sectors.
Last year’s agricultural produce exports reached record-breaking volumes, totalling $43.5 billion in current prices and exceeding 2022 levels by $1.6 billion.
We deliver our produce to over 160 countries. We supply the bulk of wheat and frozen fish worldwide, leading the way in terms of vegetable and rapeseed oil shipments. We are expecting to become a leading barley supplier following the season that has now ended.
I should also note the growth of processed produce. For instance, the sugar exports grew threefold, while sunflower and rapeseed oil exports increased by 50 percent. Flour exports exceeded one million tonnes for the first time in Russia’s history, increasing by a quarter year-on-year.
We are currently working on extending the Export of Agricultural Products federal project until 2030, which will provide all necessary tools to achieve the national goal of increasing food supplies to foreign markets by 50 percent.
Next, I will tell you about other state programme indicators.
Gross value added in agriculture, according to preliminary data, has achieved five trillion roubles.
Capital investments in agriculture made up 103.3 percent. Last year their amount exceeded one trillion roubles, which were invested in the purchase of machinery and equipment, breeding animals, land reclamation works, planting of perennial plantations, and other areas.
According to the Ministry of Agriculture, the sector labour production will amount to 102 percent, which is in line with the plan. I will note that from 2018 to 2022 this indicator grew by over 20 percent.
Now about the government support for the sector, in brief.
As you have mentioned, last year 442.6 billion roubles were allocated to the state programme, with the utilisation of 99.9 percent. Concessional loans are still the most popular mechanism. In 2023, banks signed contracts totalling more than 1.3 trillion roubles. One of our constant priorities is the support for small farms, with more than 20% of the stimulating subsidies allocated for this purpose from the federal budget last year.
In addition, over 6.2 billion roubles were provided to small businesses under the Small and Medium-Sized Businesses Acceleration federal project.
Mr Mishustin, colleagues,
In conclusion, a few words about our priorities.
In order to fulfil Presidential Executive Order No. 309, we have defined the following key benchmarks for the industry’s development until 2030: achieving the indicators of the national Food Security Doctrine and increasing output, boosting investment in the industry, increasing agricultural exports, and achieving technological leadership in breeding, genetics, biotechnology, and manufacturing veterinary medicines.
I should particularly note that we cannot execute all these tasks without providing the industry with professional staff. As instructed by the President, we will be actively involved in promoting agriculture careers. We plan to develop a system of personnel training from school to employer, so that children and their parents could initially see clear prospects and broad career opportunities currently available in Russia’s agro-industrial sector.
Colleagues, we will take further consistent efforts to achieve all the state programme indicators in order to enhance national food security and supply quality and diverse food products to our citizens.
Mikhail Mishustin: Thank you, Ms Lut.
By tradition, we are getting ready in advance for harvesting, followed by autumn field works. To this end we obviously need to make use of all support measures provided by the state programme for our agricultural producers to have everything necessary both in summer and autumn.
We must take into account all the proposals, including those voiced during the strategic session when preparing the federal budget.
The President emphasised that support for the agro-industrial complex should be continued. I am sure that lawmakers agree on making further efforts to ensure that the large and high-quality scope of Russian products is preserved and constantly expanded.
