July 13, 2007

Russia's dairy and meat sectors to up farm sector by 23 percent in five years

Russia's premier said the country's farm production is expected to surge by 23 percent in 2012 through the government's five-year agricultural programme.

Premier Mikhail Fradkov said the programme is expected to provide a significant rise for the farm industry.

The programme sets a target for growth in livestock farming of 5 percent a year against the current 3 percent today. Domestic meat products should take up 76.9 percent of the market by 2012 against the current 57.7 per cent in 2006, and dairy products 81.1 per cent against 77.8 per cent.

The government's yearly budget support for agriculture is to be gradually increased from 60 billion rubles this year to 130 billion in 2012, which is expected to secure agricultural growth of 4 percent a year against the current 2.8 percent. A government source said total funding for five years will be 551.3 billion rubles or US$22 billion.

The Agriculture Ministry said it wanted to increase domestic meat and dairy consumption to 70 percent of the total amount consumed, said a government source.