02 August 2016

    Over the medium term, the elimination of shortages of key food products in the Russian Far East will significantly lower prices.

    Investment projects in advanced special economic zones (ASEZs) will enable annual production of more than 1 million tonnes of agricultural produce. At a retreat dedicated to issues of national security in the Russian Far East, Deputy Minister for the Development of the Russian Far East Sergey Kachayev stated that the new agricultural capacity would yield 250,000 tonnes of meat and 60,000 tonnes of dairy products, 240,000 tonnes of feedstuffs, and 500,000 tonnes of crops, as well as processed fish and meat products.

    Currently, three of the 13 ASEZs specialise in agricultural production: Mikhailovsky ASEZ in Primorsky Territory, Belogorsk ASEZ in Amur Region, and Yuzhnaya ASEZ in Sakhalin Region. “Nine residents are already operating in these zones. They plan to invest RUB 50 billion in new agricultural production facilities”, Mr Kachayev stated. Investors approved a further 10 agricultural projects in non-industry-specific ASEZs.

    Major ASEZ-based agricultural projects include the building of pig-breeding complexes with an annual capacity of 79,000 tonnes; the creation of a complex for the production of compound feeds with capacity of 240,000 tonnes; grain elevators with a 120,000-tonne capacity; dairies with 2,400 head; livestock-breeding complexes producing up to 13,000 tonnes of pork and beef; seven pig farming complexes with a production capacity of up to 540,000 head; and a factory for the processing of 240,000 tonnes of soy.

    Investors are showing a particular interest in the Free Port of Vladivostok. Seven investors have already obtained resident status and intend to develop logistics and processing capabilities for the agricultural sector. An additional five investors will work on seafood processing and aquaculture projects. Entrepreneurs plan to build storage facilities for meat, dairy, fish, and agricultural products.

    “New tools to promote the accelerated development of the Russian Far East are creating attractive conditions for agricultural investment. In the medium term, these tools will allow for the complete elimination of shortages of key products in Far Eastern regions and significantly reduce the prices of staple foods”, the Deputy Minister emphasised.

    The greater part of output resulting from these investment projects will be channelled into domestic consumption, helping to realise the region’s potential for import substitution.