agri -industrial complex of krasnodar region : successful experience in supporting investors
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Agri -industrial complex of Krasnodar region : successful experience in supporting investors. Evgeny Gromyko Vice-Governor Krasnodar region. 1. Main aspects of development of agri -industrial complex in Krasnodar region. Characteristics of the region ; Structure of agricultural land ; - PowerPoint PPT PresentationTRANSCRIPT
Agri-industrial complex of Krasnodar region:
successful experience in supporting investors
Evgeny GromykoVice-Governor
Krasnodar region
1. Main aspects of development of agri-industrial complex in Krasnodar regionCharacteristics of the region;Structure of agricultural land;Main economic indicators;Labor efficiency.
Krasnodar region– the largest agri-industrial region of Russia
The southernmost region of Russia;
Region with the most favorable weather conditions for agriculture in Russia;
3,8 mln. ha of plough land , 70% of which is black soil (rus. - chernozem);
The opportunity to grow more than 100 agronomic crops;
More than 342 000 ha of pasture land for farm animals;
45% borders, going on the sea, and 9 non-freezing sea ports provide all year round external trade.
3 753.2 54.4
28.2 51.5 342.3
Structure of agricultural land of Krasnodar region
Total area of agricultural land of the region exceeds 4,2 mln. ha;
More than 88% is plough land, 10% of which is irrigated;
gardens
vineyards hay-fields pasture land
plough land
In Thousand
Ha
Main economic results of agricultural enterprises’ activity in the region
Gross revenue exceeds $3,5 billion per year;
Volume of net profit for the last 4 years has grown up on 26%;
Agri-industrial complex of the region has overcome the consequences of the crisis of 2009 year. In 2011 profitability will amount to more than 20%
Profitability,%2007 year 2008 year 2009 year 2010 year 9 month
2011 year
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
2.3 2.7 2.8
3.5
2.6
0.4 0.4 0.3 0.5 0.4
Income, bln $ Net profit, bln $
2007 year 2008 year 2009 year 2010 year 9 month of 2011 year
0.0
5.0
10.0
15.0
20.0
25.0
21.118.7
12.9
17.820.2
Labor efficiency in agri-industrial complex of Krasnodar region
Labor efficiency in agricultural sector of Krasnodar region exceeds average Russian indicators 4 times.
Krasnodar region takes the 17th place in Europe for labor productivity in agricultural sector (Russia – 26 place).
Labor efficiency in agricultural sector, thousand $/1 worker
Russia
Krasn
odar region
Europe (i
n average)
0.0
10.0
20.0
30.0
40.0
50.0
8.0
28.0
48.4
2. Sector structure of agri-industrial complex of Krasnodar regionHorticulture; Livestock breeding;Food and processing industry; Technical support of the sector.
2.1 Horticulture
Horticulture sector of the region on a national scale;Structure of cultivated areas;Volume and structure of horticulture products.
Horticulture sector of Krasnodar region on a national scale
100% tea and subtropical cultures ;
78% rice;
55% grape;
45% corn;
32% sugar beet;
18% sunflower;
16% grain.
Structure of cultivated areas, mln. ha
Total crop areas in Krasnodar region amount to more than 3,6 mln. ha;
40% - fall planting; 60% - spring planting.
1.5
0.50.470.20.1
6
0.14
0.8
0.47
Fall-planted (wheat and bar-ley)CornSunflowerSugar beetSoyaRiceVegetables and gourdsOther spring-planted
Volume of production and structure of horticulture products
61% of production of agri-industrial complex of the region;
More than 15 mln. tonnes of products (without sugar beet);
51,5 billion roubles Gross Regional Product;
Cere-als and
grain legumes47%
Corn for grain8%
Sunflower
seed
8%
Soya
3%
Vegetable
crop
2%
Sugar
beetroot (factory)14%
Other products
18%
2.2 Livestock breedingTotal number and structure of livestock complex;
Structure of cattle stock;
Volume of production and structure of products of livestock sector.
Structure of total number of animals
259 000 headsIn 1990 – 588 000 heads
1 mln. headsIn 1990 – 2,9 mln. heads
152 000 headsIn 1990 – 954 000 heads
22 mln. headsIn 1990 – 32 mln. heads
Structure of cattle stock, %
Number of head of cattle stock exceeds 259 000 heads;
Main share– dairy breeding;
More than 32 000 heads – imported;
4 865 heads of pedigree bred heifers of dairy breed were imported from the USA for the last 4 years
37.5
7.830.2
0.1
24.4
cows bred heifers heifers stud bulls young stock
Volume and structure of products of livestock sector
Cattle stock50%
Pig breeding17%
Poultry28%
Other5%
31% of products of agri-industrial complex;
More than 32,7 billion roubles Gross Regional Product;
More than 1,2 mln. tonnes of products.
2.3 Food and processing industry
Share of the sector on a national scale;
Main indicators of the sector.
Share of the sector on a national scale
Canned food on meat basis for babies – 85%
Rice cereal– 78%
Natural coffee- 61%
Sugar from sugar beet– 35%
Vegetable oil– 22%
Fruit and vegetable juice– 11,5%
Main indicators of the sector
Total volume of investment into the sector for the last 4 years – 1,25 bln. USD;
The volume of the shipped products has increased from 3 bln. USD to 5,4 bln. USD since 2007;
Large enterprises in the region:
- 14 meat processing factories
- 20 milk processing factories
- 16 sugar plants
2.4 Technical support of the sectorQuantity and structure of agricultural machinery;
Main countries – exporters of agricultural machinery to Krasnodar region;
Main companies-exporters from the USA.
Structure of agricultural machinery of Krasnodar region
In the beginning of 2011 there were more than 35 000
units of agricultural machinery in the
organizations of the region
Structure of agricultural machinery
Share of machinery of import manufacture
About 2,2 thousand of units - machinery of import
manufacture
82%
15%
2% 2%
tractors grain combine harvestersforage harvesters sugar-beet harvesters
Machinery of Russian
manufacture
94%
Imported machinery
6%
Structure of main exporters of agricultural machinery to Krasnodar region
The USA– leader in export– more than 62%
62%
24%
5% 2%2% 5% the USA
Germany
Italy
Canada
Joint production
Others
Main companies-exporters from the USA
56%
19%
10%9% 4% 2%
Agricultural machinery from the USA in Krasnodar region
( )Другой текст см русскую
3. Investment into agri-industrial complex
Sources of financing of agri-industrial complex;
Main risks for investors;
Risk minimization in agri-undustrial complex.
Main sources of financing of agri-industrial complex
Agri-industrial complex
Bank loans Subsid
ies
Tax c
oncessi
ons
Own resources Outward investment
Providing of food supply securityDecrease in share of import on the market
Quality products at available prices
Leasing
Объём накопленных инвестиций в АПК , . .Краснодарского края млрд долл
2007 year 2008 year 2009 year 2010 year 9 month of 2011 year
0.0
0.2
0.4
0.6
0.8
1.0
1.2
0.8
0.90.8
1.01.1
Main risks for investors into agri-industrial complex•Change of market prices for the products;
•Increase of prime cost in connection with a rise in energy resources cost;
•Change of interest rates in financial institutions.
• Decrease (loss) or increase (excess
production) of harvest in
connection with natural anomaly
•Undeveloped social infrastructure of a
village;
•Low level of awareness of workers
in agri-industrial complex about
advanced technologies of management
•Weak logistics in agricultural sector
•Change of tax legislation;
•Change of conditions and volumes of state support;
•Drawbacks of integration into the global economy (including entrance of the Russian Federation into the WTO)
Macroeconomic Climatic
SocialPolitical
Risk minimization in agri-industrial complex
Effective agricultural
sector
Close cooperation with the regional
authorities(ответств )енность властей
Usage of insurance instruments and
participation in the programs of state
support
Usage of advanced high-efficiency technologies of management
Development of informative-consulting
services in agri-industrial complex of the region and
service «one window»An application of modern
technologies and observation of scientifically proven time periods of planting and crop
rotation, diversification of cultures
4. State support of agri-industrial complex
Sources of state support of agri-industrial complex;
Main types and directions of providing state support;
Volume of financing activity-specific.
Sources of financing of state support measures in agri-industrial complex of Krasnodar region
Resources of the Feder
al Budg
et
Resources of the Regio
nal Budg
et
Resources for providing state suppor
t in agri-
indutrial
complex
State programme «Development of agri-industrial complex» till 2020 year;
Regional programme «Development of agricultural markets of raw material and food» till 2020 year;
Regional economically significant programmes;
Departmental regional programmes.
Main directions of state support and distribution of resources, %
60%
24%
16%
• Compensation of a part of interest rates for short-termed loans;
• Compensation of a part of expenditures on interest payment for investment loans;
• Compensation of a part of expenditures on interest payment for the loans on development of small businesses
• Compensations for a purchase of mineral fertilizers and chemical products;
• Subsidies for fuel for agricultural works;
• Subsidies for the support of livestock ;
• Subsidies for a purchase of elite seeds.
• Federal target programme «Social development of a rural area»;
• Regional target programme «Development of dairy cattle»;
• Regional target programme «Development of meat cattle».
Support during investment and loan
Support of ongoing activities
Support within the frames of target programmes
Volume of state support in the field of investment and loan granting, 2005-2011 years, mln. $
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
180.0
200.0
23.8
149.2
197.1
1.2 15.1
39.4
Resources of the Federal Budget Resources of the Regional Budget
Volume of state support of agri-industrial complex in the field of ongoing activities, 2005-2011 years, mln. $
0.0
10.0
20.0
30.0
40.0
50.0
60.0
10.7
21.0 22.1
36.3
50.3
1.2 2.1
8.0
0.3
15.5
Resources of the Federal Budget Resources of the Regional Budget
Volume of state support on target programmes, 2005-2011 years, mln.$
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
40.0
45.0
19.2
44.9
7.6
17.2
Resources of the Federal Budget Resources of the Regional Budget
5. Cooperation of Krasnodar region and the USA
Main ways of cooperation of Krasnodar region and the USA;
Future-oriented ways of cooperation
Main ways of cooperation of Krasnodar region and the USA
Purchase of agricultural machinery and equipment;
Purchase of pedigree cattle stock and poultry;
Purchase of components for feed manufacturing;
Organization of processing and other types of manufactures.
Future-oriented ways of cooperation today
?
Future-oriented ways of cooperation tomorrow
1. Using of financial institutions and instruments of the USA;
2. Creation of joint manufactures in agriculture sector, food and processing industries;
3. Increase in the volumes of purchase of pedigree animals and poultry;
4. Implementation of American experience and technologies in irrigation sector;
5. Technical support in certification and standartization of products and manufactures, energy-saving technologies and equipment.
!
!
!
!!
An investor for the construction of a sugar plant is demanded
Productivity of the plant – 16,6 thousand tonnes/24-hour period;
Volume of investment– 300 mln. USD;
Payback period– 4,5 years;
The area of a land plot– 97,7 ha;
Direct investment.
Thank you for your attention!Welcome to Krasnodar region!