Food production volume may double in Bashkiria by 2026

The Bashkortostan Government approved the Concept for the food and processing industry development of the republic for 2021-2026.

"The implementation of the Concept will allow to increase the number of food and processing industries by two thousand by 2026 and bring the total volume of shipments to 200 billion rubles," Deputy Prime Minister - Minister of Agriculture Ilshat Fazrakhmanov said at a meeting of the Cabinet of Ministers.

Now 1000 regional enterprises with a volume of shipment of products of almost 100 billion rubles operate in the field of agricultural products processing.

As noted by Ilshat Fazrakhmanov, the region retains a high position in the country in the production of agricultural products. In 2020, in terms of gross agricultural output, the region rose to sixth place in the Russian Federation and second place in the Volga Federal District.

In 2020, the food production index in the republic amounted to 104.5%, which is higher than the national average.

"The share of raw materials is gradually decreasing in the agro-industrial complex of the region, and the volume of processed agricultural products is growing. It is no accident that seven projects with an investment of 3.4 billion rubles have been implemented in the republic in agricultural products processing. Another 42 projects worth 50.8 billion rubles are at the planning stage or implementation," the Deputy Prime Minister added.

Significant funds have been invested in production development at Belebeevsky Dairy Plant OJSC, SIGMA Group of Companies, TAVROS Group of Companies, Ufagormolzavod LLC, Stroganov Cold Slaughterhouse LLC, Poultry Assets Trust Management Company, and other enterprises of the industry.

The key measures for the food and processing industry development in the region were the creation and modernization of existing production facilities, the development of processors from among small business representatives, an increase in human resources in the industry, promotion of republican products.

It is planned to apply the current state support measures to support the food and processing industry of the republic, including:

- concessional short-term lending (term - up to 1 year, from 0 to 5%);

- concessional investment lending (term - from 2 to 8 years, from 0 to 5%);

- reimbursement of part of the cost of purchasing agricultural machinery and equipment up to 50%;

- participation in the preferential program of JSC "Rosagroleasing" (subsidizing the initial payment (advance) subsidizing the costs of the remainder of the lease payments after the transfer to ownership - up to 50%);

- creation and modernization of production and marketing of products capacities (Capex) (reimbursement of direct costs incurred in the amount of 20%);

- inclusion in the list of priority investment projects.