Poultry farms in the Kirov region will lose state support due to excess profits

Poultry farms in the Kirov region will lose state support due to excess profits
Photo is illustrative in nature. From open sources.

“It would be better if other enterprises received support. This year, I think, we will be able to support the Vyatka breed of horses and fur farming, which are a trademark of the Kirov region,” the governor said.

Previously, egg and chicken producers turned to the federal government asking for support and assistance, as they could not stimulate investment . The enterprises wanted to receive compensation for the construction, modernization and reconstruction of poultry farms.

However, the Ministry of Agriculture of the Russian Federation stated that they do not plan to allocate additional funds to support poultry enterprises, since the industry is quite profitable. The department also noted that poultry farms must independently cope with current challenges, such as rising prices for feed and energy resources.

Experts note that the decision of the governor of the Kirov region to deprive poultry farms of state support could lead to a decrease in egg production in the region and an increase in prices for this product. In addition, this could lead to job losses and a deterioration in the economic situation in the region.

In turn, representatives of poultry farms claim that the sharp increase in egg prices was a forced measure associated with rising prices for feed and energy resources. They also note that a reduction in government support could lead to bankruptcy of many enterprises and loss of jobs.

The situation with poultry farms in the Kirov region is a clear example of how government support can become a source of abuse and corruption. Instead of using the funds to develop the industry, enterprises used them to make excess profits, which led to rising egg prices and negative consequences for consumers.

The government needs to develop a new system for supporting agricultural enterprises that will be transparent and effective. This system should be aimed at stimulating investment in the industry and increasing the competitiveness of domestic agricultural producers.

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