Republic of Tatarstan:

2. economy
prOducTiOn
SuBcOnTrAcTinG
Under current conditions, an actual problem
of the industrial enterprises of the Republic
of Tatarstan is an active work on enhancing
the competitiveness through re-equipment,
introduction of new industrial areas of focus,
implementation of anti-crisis development
programmes. Of great significance in achieving these tasks is the work on
reducing internal process costs by introducing mechanisms of subcontracting,
i.e. production cooperation, and by restructuring enterprises on
an outsourcing basis. The essence of this approach can be described as follows:
“While keeping to myself the things that I can do better than others,
I out-task to other performers the things they can do better than others”.
With an aim of implementing the said approaches, a State non-profit
fund, Production Subcontracting Centre of the Republic of Tatarstan, was
created in the republic which allows solving many problems arising in the
process, such as seeking the suppliers, ensuring the affordable procurement
prices for component parts, and maintaining the quality objectives.
As requested by the Ministry of Industry and Trade of the Republic of Tatarstan,
the Production Subcontracting Centre has worked out and is supporting
the automated Internet project at www.cps-rt.ru “Integrated Information
Support System for Commodity Producers”. Its mission is to create and
develop the infrastructure for production cooperation.
The portal www.cps-rt.ru incorporates the following sections: Science
and Production, Subcontracting, Goods and Services, and All Tatarstan.
1. Science and production: contains innovation projects of current inter-
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est; research and engineering issues of industrial enterprises which should
be solved by involving research and design organisations, inventor teams, investors;
R&D solutions offered for the introduction by universities and sectoral
research, design and industrial organisations of the Republic of Tatarstan.
2. Subcontracting: provides for the deployment of production and technology
capabilities of industrial enterprises in Tatarstan for the market of
subcontracting services and receipt of additional orders from other enterprises,
making it possible to organise the controlled restructuring of enterprises
on an outsourcing basis.
3. Goods and Services: renders advertising support to commodity producers,
including small and medium-sized businesses, for promoting their
products and services to the markets of the Republic of Tatarstan and other
regions of the Russian Federations.
4. All Tatarstan: a reference system with brief contact information of enterprises,
organisations and agencies in the Republic of Tatarstan.
Production Subcontracting Centre of the Republic of Tatarstan is a
participant of the National Partnership of Subcontracting Development,
a non-profit partnership in the Russian Federation, and cooperates with
republic’s ministries and agencies. Its partners include ROR Association of
Enterprises and Entrepreneurs of the Republic of Tatarstan, Association of
Small and Medium-Sized Businesses of the Republic of Tatarstan, Committee
for Small and Medium-Sized Business Development of the Republic
of Tatarstan, and Chamber of Commerce and Industry of the Republic of
Tatarstan.
By making use of the Integrated Information Support System for Commodity
Producers at www.cps-rt.ru, any businessman, scientist, or manufacturer
would be able to implement his project on an outsourcing basis in
real time by involving experts in the corresponding field of activities to the
project implementation.
3. AGRICULTURE
The total ground area of the republic is 6.8 million hectares, including
farmland of 4.5 million hectares, of which 3.5 million hectares are arable
land. Total population living in rural areas is 943,500.
The agrarian sector is a large sphere of the national economy playing an
important role in the life of the Republic of Tatarstan.
The development of the agro-industrial complex remains one of the economic
priorities of the Tatarstan leadership; the sector enjoys a considerable
governmental support. Since 2000, there is a stable growth in the crop
and livestock production.
The republic is ranked among top three leading regions of Russia in the
total output of agricultural products and completely satisfies the demand
of its residents for staple foodstuffs.
Tatarstan boasts the cheapest minimum subsistence basket both in the
Volga Federal District and in the country in general.
In 2009, the volume of agricultural output of all agricultural organisations
and farming enterprises generated revenue of RUR 119.1 billion
(101.5% compared to 2008). The gross yield of grains was 4.8 million tonnes
(that is, some 1.3 tonnes of grains per Republic’s resident thus exceeding
the internationally accepted standards). A total of 1.9 million tonnes of potatoes,
1.5 million tonnes of sugar beet, and 305,000 tonnes of vegetables
were harvested in 2009.
The developed and steady agriculture forms a basis for efficient and
high-grade livestock husbandry. Tatarstan distinguishes itself by a substantial
livestock potential. With its high density of cattle and poultry stock, the
republic is increasing its contribution towards ensuring the food security
of the country.
The cattle stock of all agricultural producers was estimated at 1,122,000,
including 424,000 cows; other livestock includes 701,000 pigs, 393,000
sheep and goats, and 13.1 million poultry.
In 2009, the production of milk by all agricultural producers totalled
1,911,000 tonnes (104.9% to the level of 2008); the republic is a contributor
of over 5.9% of the total milk produced in Russia. The production of livestock
and poultry for slaughter was 413,000 tonnes on a live weight basis
(105.6 % of the figure for 2008).
In general, with its 2.3 % of the country’s farmland, the republic accounts
for 4.8% of the country’s agricultural produce.
Implementing active social policies, using, as much as possible, the internal
reserves, and ensuring the growth of rural economy are largely promoted
by the consistent implementation of the Programme for Agriculture
Development in the Republic of Tatarstan for 2008-2012.
Tatarstan has formed a really diversified economy. Its own strategic
investors and private companies hold a half of the republic’s arable land
3. aGRiculTuRe
and livestock, advanced technologies and machinery. They invested over
RUR 90 billion into the agricultural business development. Tatarstan’s large
investors are OAO VAMIN Tatarstan, ZAO HK Zolotoy Kolos, ZAO Agrosila
Group, OAO Krasny Vostok-Agro, and OAO HK Ak Bars-Agro.
Critical factors determining the vector of agricultural development are
the efficient utilisation of available arable land, livestock and poultry; optimisation
of expenditures through introduction of resource saving and innovative
technologies; increase in the business activities of rural residents;
and support of small businesses in rural areas. Due to the systematic upgrading
and renovation of the enterprises in this sector, Tatarstan succeeded
in stabilising and later increasing the production outputs, in effecting a
further development as a country’s most successful agrarian region.
Since the outset of the agrarian project, an opportunity has emerged to
better develop the family commercial farming with governmental support.
Over these years, some 45,000 credits to a total of more than RUR 9.0 billion
were granted under the Plan of Promoting the Development of Small Farm
Patterns. Some RUR 825 million were paid towards easing of the credits
received.
Some 5,600 young professionals and young families were subsidised for
housing acquisition or construction in rural settlements for a total amount
of RUR 3.9 billion under the Plan of Providing Young Professionals and
Young Families with Affordable Housing in Rural Areas.
The present-day agricultural industry with its mixed pattern of ownership
imposes heavy demands on the professional level of managers and
specialists. The educational cluster of the agro-industrial complex is a mutually
beneficial cooperation of agricultural educational establishments
and such employers as large investors and agro-industrial firms, with a view
of enhancing the quality of experts’ training for their agricultural production
work.
The educational cluster of the agro-industrial complex comprises the
Kazan State Agricultural University, the Kazan State Academy of Veterinary
Medicine, the Tatar Institute for Agribusiness Personnel Retraining, 7 agricultural
secondary schools, 40 vocational schools, 6 agrarian colleges, and
comprehensive schools.
Social infrastructure is also being intensively developed in rural areas. For
instance, the provision of gas supply to houses and apartments in rural areas
has almost been completed; up to 200 kilometres of paved roads and over
hundred schools, kindergartens, community clubs and a number of other
social support facilities are put into service or reconstructed each year. Over
90% of the republic’s territory is covered with cellular communications of
major Russian operators. All 43 rural districts are connected to the governmental
integrated telecommunications system of the Republic of Tatarstan.
Republic of TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy Republic of TaTaRsTan: GeneRal oveRview, sTaTe sysTem, economy
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