Business news

19 Mar 2021

Belarus president visits agricultural company near Grodno

GRODNO, 19 March (BelTA) – Belarus President Aleksandr Lukashenko toured the Obukhovo dairy farm of the Senko agricultural company during a working trip to Grodno Oblast on 19 March, BelTA has learned.

The president was briefed about the social and economic development of Grodno Oblast in 2016-2020. The GRP grew by 5%. Idustrial and agricultural output rose by more than 14%, but the construction and installation sector shrank. For the five years wages in the region increased by almost 30%. Foreign direct investment on a net basis amounted to $372.5 million. In 2016-2020 Grodno Oblast had a surplus in foreign trade in goods and services at more than $2.6 billion.

"Even in 2020, which was very difficult for the whole world, we managed to fulfill your instruction. Gross regional product did not decrease an inch, actually in twas up by 0.1% as against 2019. Agriculture was a great contributor by posting an almost 8% growth. Exports of services and goods increased, and foreign direct investment remained at the previous level," Grodno Oblast Governor Vladimir Karanik said.

He also spoke about the most socially important investment projects. These include the projects to renovate a bridge in Grodno, to build a cancer center, also a plant to produce cotton yarn in Smorgon and a woodworking plant in Svisloch. In general, investment activity is not decreasing, the logistics sector is growing.

Speaking about the agricultural sector, Vladimir Karanik said that crop production ensures the sustainable development of the livestock sector. Local farmers ramped up milk output without increasing the milking herd. The growth was attributed to improved labor productivity and use of modern technologies at dairy farms. As a result, local agricultural enterprises reported a surge in net profit.

The head of state praised these achievements but pointed out that it would be better to compare one five-year period with another one. “We have now looked at 2015 and 2020. Let's avoid such comparisons. The year 2020 was successful, but can we say the same about 2015?” he noted.

Grodno Oblast is well positioned to increase the cattle population. “Grodno Oblast should develop not only qualitatively (the yield and quality of milk), but also quantitatively,” the Belarusian president stressed.

The discussion also focused on efficiency and volumes of milk production in Grodno Oblast and technological modernization of enterprises. “To produce milk we need three elements: workforce, feeds, and cows,” Vladimir Karanik pointed out. Work is underway to improve the provision of farms with animal feeds. The contribution of animal breeding is also crucial.

As for the spring field works, Vladimir Karanik assured the president that everything is in place for a successful planting campaign: there are enough machines, workforce, and seed stock.

The president also brought up an issue that he is always concerned about: how well processing enterprises pay farmers for their products.

Head of the Obukhovo dairy farm Valery Shumel spoke in detail about the state of affairs at the enterprise. It is the most advanced enterprise in the district and the region. The average salary at the enterprise equals Br1,350. In the past five years, sales revenues soared by Br20 million to total Br58 million in 2020, with the net profit at Br12 million and product profitability at 26.6%. “The dairy farm is doing well economically. In the past five years, the milking herd productivity skyrocketed by 24%, by around 5% a year. However, there is still room for growth,” he noted.

“So you feel confident about the future and think that you will not need more land, right?” the president asked.

Valery Shumel was positive about that. He said that the structure of cultivated land will enable the enterprise to satisfy its own demand for fodder. “We want to develop economically. If there is money, there will be development,” he noted.

The president's also asked whether the enterprise uses loans. Valery Shumel assured the head of state that it does not.

Although the enterprise is busy upgrading its manufacturing facilities, it does not forget about its employees. “Last year we funded the construction of a 16-apartment house and a major overhaul of four houses. Twenty families of our employees improved their housing conditions. Of course, we hire new employees, including young people. There is only one person on the list of employees who want to improve their housing conditions. However, new people apply for this, and we will add them to the list. If needed, we will build another house. In the past five years, we built two 16-apartment houses,” Valery Shumel said.

Aleksandr Lukashenko took his time to inspect the enterprise thoroughly, especially its dairy facilities. “I have inspected the enterprise, it produces good-quality milk. The facilities are clean not just because they had prepared for my visit. I was raised on a farm, I can tell the difference,” the president said as he visited at the Molochny Mir dairy later that day. “Your laboratories have no complaints about the quality of milk, not only from Obukhovo, but also from other local farms. This means the system operates well,” he added.



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