Krasnodar, 12 July – Yug Times. At the last plenary session of the regional Legislative Assembly, the deputies adopted the regional law “On development of manufacture of organic products.” It is the first document of the kind in Russian regions, aimed at providing support to Kuban farmers on the production, sales and exports of organic food. The production of organic foods is known to require a completely different legal regulations, because the organic technologies differ much from conventional agriculture.
Presently, the national demand for organic products is dramatically higher than the offer, which in its turn causes high markups for ‘natural’ products which may reach as much as 300%. The main target audience for organic products is the well-off. Currently, over 50 Russian farms operate according to the international standards. They contribute to the growth of domestic production and, in the future, to the reduction of the markup to 30 – 50%.
One of the most difficult things for organic farmers is certification, which may cost minimum 300,000 roubles per farm. What is more, the certificates must be confirmed every year. Kuban is considered the most developed Russian region in terms of support of organic farmers. It has a regional law on organic agriculture, and the Union of Organic Farmers of the Kuban Region, the only structure of the kind in the country. The package of measures of governmental support of the agricultural complex include subsidised leasing, bank crediting, grain transportation tariffs, a unified regional subsidy, and partial reimbursement for the bank interest on investment credits taken before January 1, 2017.
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