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Merger of agricultural enterprises in Belarus expected to provide financial benefits
SHKLOV, 9 August (BelTA) – The key purpose of setting up integration structures in agriculture should be finance and better performance of the agricultural enterprises that get merged. Belarus President Aleksandr Lukashenko made the relevant statement at a government conference in Shklov, BelTA has learned.
Chairman of the Mogilev Oblast Executive Committee Anatoly Isachenko presented his vision of effective development of agricultural production. There are plenty of production tasks concerning the revision of the structure of the area under crops, the development of dairy complexes, the workload of the processing industry, and many other things. But everything hinges on discipline, the head of the oblast administration admitted. “All of it is real. All of it is feasible. But then again if we strictly follow process specifications. All our calculations demonstrate that it is feasible,” the Mogilev Oblast governor said.
Merging individual agricultural enterprises into so-called integration structures represents another opportunity for development in the region. Similar experience in Slavgorod District and Kirovsk District in Mogilev Oblast has produced certain positive results. Proposals have been put forward to apply the same approach in Shklov District, too.
However, Aleksandr Lukashenko stressed that merging the agricultural enterprises just for the sake of the process is not a good idea since merging is no panacea by itself. “We need finance at the end,” he stressed.
“Once again I am not disproving your ideas. But I am categorically against pressure from above in favor of these mergers. We did plenty of merging and unmerging back in the Soviet Union. Reorganization does not solve the main problem. If you said that if we merge two agricultural enterprises and a good investor will come, then it is another thing. But you want just to merge two agricultural enterprises,” the Belarusian leader stated. “It is necessary to very accurately approach it and convince people. You shouldn’t push for it from above.”
The head of state encouraged continued integration of agricultural producers and the creation of large companies with a complete production cycle.
“Where it is necessary,” the president emphasized. “If an individual agricultural enterprise like Gorodets, Gastellovskoye, Voskhod and the other good and small enterprises can operate on their own, let them work”. If an agricultural enterprise itself grows and comes to realize that the available lands are insufficient, then the state would welcome a merger.
“This is why you should look for spare land together with the oblast governor in order to attach them to this agricultural enterprise and get a larger effect. We know that things will work out over there,” Aleksandr Lukashenko noted.
At the same time the president cautioned against forced mergers. Decisions need to be made on the spot bearing in mind the situation.
“Don’t ruin it by merging it with some weak agricultural enterprise. It will weigh heavily on the good one,” the head of state pointed out. “Honestly speaking, I don’t like big agricultural enterprises. But I can see the trend [in favor of big ones]. But you shouldn’t make anything artificial.”
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