PM: Vitebsk Oblast is on track for major transformation

Aleksandr Turchin

MINSK, 5 May (BelTA) - Vitebsk Oblast will look completely different both in its appearance and its economy within a few years, Belarus’ Prime Minister Aleksandr Turchin said after the meeting of the head of state with the Council of Ministers on 5 May, BelTA has learned.

The agenda of the meeting included a draft directive to merge Orsha Meat Canning Plant and its supply zone with Agrokombinat Dzerzhinsky as a way to revitalize the Orsha enterprise and boost its efficiency. Several financial matters needed to be discussed.

“This document is essentially a follow-up to the president’s meeting on Vitebsk Oblast and is one of the measures aimed at putting his instructions into practice,” Aleksandr Turchin said. “I believe Vitebsk Oblast is already showing results. If we implement all our plans, the region will be transformed within a few years both visually and, most importantly, economically. I have no doubt about that.”

When asked about additional assets to Dzerzhinsky Agrokombinat, the prime minister noted: “The principle of economies of scale still applies. Scaling up a business is a natural process, and it just makes sense from an economic point of view.”

He also emphasized that Belarus is a small country, so there should be no competition between regions. In this case, an enterprise from Minsk Oblast is gaining an asset in Vitebsk Oblast.

“We all work in the same country. It would be inefficient to have a modern enterprise running at half capacity. Why did we invest money? For it to operate at 50% capacity? Without revenue or profit, the enterprise cannot meet its obligations, which triggers many other problems. So merging Orsha Meat Canning Plant with Agrokombinat Dzerzhinsky is the right decision,” Aleksandr Turchin said.

Only large producers can sell directly to major Russian retail chains. Smaller ones must go through traders, he noted.

As for state support, Aleksandr Turchin said it is possible, but only after an enterprise has done everything in its power including cutting costs and reducing production expenses. “Only then it is fair. This is what the president always insists on,” he said.

The main line of business of Orsha Meat Canning Plant will not change if it is merged with the Dzerzhinsky enterprise, Director General of Agrokombinat Dzerzhinsky Vladimir Lukyanov, told reporters.The cannery will continue to produce canned goods. Modernization plans are also in place to increase output. The company is also exploring the possibility of manufacturing animal feed at the cannery. The Orsha Meat Canning brand will not be abandoned.

“We are keeping the brand. It has its own customers, and there is demand for it,” Vladimir Lukyanov stressed.