Economist Olga Voronkova told altapress.ru about the prospects for the development of agriculture in Altai

18 May 2024 Adapted from Altapress
Category: events

This year, the Research Center for Altaic and Turkic Studies “The Greater Altai” and Altai State University implemented a scientific and educational project dedicated to the 70th anniversary of the development of virgin lands. The project expert, Doctor of Economics, Professor of the Department of Management, Business Organization and Innovation at Altai State University Olga Voronkova shared insights with altapress.ru on the potential for repeating such large-scale land development efforts and prospects for the region.

The expert highlighted the challenges faced by some villages experiencing population outflow, particularly among young people. But this does not happen everywhere. There are robust agricultural enterprises that are expanding, working, and enhancing infrastructure.

“I sometimes travel through the regions and observe the situation,” says Olga Voronkova. “Recently I visited the Ust-Kalman region, which is also considered virgin land. The House of Culture there has been beautifully restored and the central square has been landscaped. I met a lot of children and young people, they are really friendly there. The state program helps to restore many cultural sites and open and maintain libraries. I’m very glad that the villages are alive.”

The expert noted that the migration process itself had always existed. And it works both ways. People from Central Russia arrive here and find the local climate ideal for them.

Olga Voronkova emphasizes that fertile lands and developed infrastructure foster steady village development. Large farms and holdings do not only earn money, but also engage in philanthropy and support youth. Villages are being provided with gasification, hot water and electricity.

Salaries in such settlements can also be high. For agronomists they can reach 200 thousand rubles per month. But, unlike the enthusiasts who went to virgin lands literally to a wasteland 70 years ago, now people often are not attracted to villages, even for big money. It might be due to a lack of infrastructure: people want to enjoy the possibility of sections for children and leisure centers. Now, they are not available everywhere.

"As for the lag behind such large agricultural regions as Krasnodar and Stavropol Krais, everything is also obvious. They have larger markets and a more favorable territorial location. To deliver, for example, our grain, you need to travel across the whole country. And, it turns out, at the end of the day, our products are no longer so competitive,” she explains.

The expert is convinced that we need a comprehensive state program to stimulate agricultural growth. Now there are separate insurance and compensation programs. Dr. Voronkova emphasized the importance of integrated support over target initiatives.

When asked about the possibility to repeat the success of the initiatives of developing virgin and fallow lands, the professor replies: “On the same scale and with the same enthusiasm as in the USSR – most likely not.”

“It’s no secret that virgin land is not only about enthusiasm. People received high salaries,” notes Olga Voronkova. “In Altai Krai, during the period of virgin land development, salaries were 1.8 times higher than in other regions of Siberia. People's savings kept in the bank increased several times. The money was not hidden under the pillow, but worked. Besides, there is no need for such a major achievement. There are enough grain crops now. There are other niches that can be filled. With an integrated, thoughtful approach, prepared infrastructure, communications and an understanding of the potential consumer of the future products.”

The first and very promising, according to the professor from Altai State University, direction of development is organic agriculture, that is, environmentally friendly. For many residents of Russia, Altai Krai is an island of environmental well-being. Clean air, mountains, and ponds. This is a recreation, tourist region. Our farmers can exploit this “image.”

The main thing is that there is demand and potential for development in the region – fallow lands that are currently unused. Here again we need comprehensive support from the state at the federal level. The first step has been taken – the law on organic agriculture came into force in 2020.

Olga Voronkova highlights another unoccupied niche, which is the development of medicinal plant growing, with many pharmaceutical industry enterprises operating in our region.

At the moment, the expert explains, a significant part of medicinal plants is purchased abroad. However, they can be grown on our land, and these raw materials can be positioned as environmentally friendly.

Olga Voronkova notes that the initiative does not have to come from above. Interested entrepreneurs can submit a request for support, having previously prepared a justification for labor, land, and infrastructure resources. There are specialists for such analysis in the region.

“We can identify specific points and justify this by the proximity of processing enterprises. For example, if we talk about the cultivation of medicinal plants, there is the Biysk zone, with  many pharmaceutical enterprises being located there. There are fallow lands nearby that belong to some villages having a certain number of unemployed citizens. That is, it is necessary to draw up a specific targeted program for the implementation of a specific project. And such a request should already be sent to the Russian Ministry of Agriculture.”

When drawing up a plan, you need to calculate the benefits for the state and business. It is worth highlighting the advantages for local budgets in the form of tax credits, increase in GDP, decrease in unemployment, development of rural infrastructure, etc.

Finally, Olga Voronkova noted evolving trends in agriculture in the region. The share of industrial crops has increased, and several enterprises are looking towards organic agriculture. They understand that this segment is the future, that there is demand for it.

Some farmers are starting to produce hops for industrial purposes. Previously, all hops were purchased abroad. Technologies for virus-free seeding of this crop were developed by researchers from Altai State University.

"The main task now is to cover domestic needs in order to be self-sufficient as much as possible. Seeds, raw materials, plant protection products. Nowadays the production of our own fertilizers and agricultural engineering are also developing,” the expert emphasizes.

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