Weekly Review of the most important events of the fishing industry of the Russian Federation of 06.10.2014 12.10.2014

Over the past week, in the fishing industry there are the following significant events:
 The unified portal for posting information about the development of the federal executive public authorities of normative legal acts and the results of their public discussion published notice of the public debate on the draft law "On Amendments to Article 333.3 of the Tax Code of the Russian Federation regarding the introduction of a differentiated approach to the definition of fee rates for the right to use certain species of aquatic biological resources ". It proposed to delete the fee benefit "in respect of exported unprocessed catches of aquatic biological resources", which makes it possible to establish the tax rate for the use of aquatic biological resources in the amount of 15% of the normative. The project was initiated by the Ministry of Agriculture of the Russian Federation. According to Fishnews, the project is finished, it only applies to exports of catches living aquatic resources in a raw form. The planned entry date of Act into force – 2015.

From 8 to 11 October in Moscow was held annual agricultural exhibition "Golden Autumn", organazed by the Ministry of Fisheries. Support was provided by the Government of Moscow, Russian Academy of Agricultural Sciences, VDNKh. The exhibition was attended by 1,239 companies and organizations from different regions and countries. The opening ceremony was attended by Chairman of the Government of the Russian Federation Dmitry Medvedev, 2 Deputy Prime Minister of the Russian Federation Arkady Dvorkovich, the Minister of Agriculture of the Russian Federation, Nikolai Fyodorov, general director of OAO "VDNKh" Vladimir Pogrebenko and other officials.

As part of the annual agricultural exhibition "Golden Autumn", was held International Conference on Aquaculture, where the head of the Federal Agency for Fishery - Ilya Shestakov said the need for a strategy of fishery industry until 2030, which will determine the vector of growth and will provide a workable mechanisms for its implementation and the development of aquaculture as an a fundamental element of this strategy. "In the existing program of development of the industry is insufficient investment component. And most importantly, it is not sufficiently focused on serious growth. In addition, the significantly changed external circumstances, including political ones, which will have not only short-term but also long-term consequences for the Russian market and the industry, "- he said. Head of Federal Agency for Fishery added that for the correct formulation of the problem for the development of the strategy was to engage a consultant who analyzed the current situation, and interviews with key representatives of the industry, has developed them and prepared draft terms of reference.

The general director of consulting company «Alt» Alexander Pechersky made a report on the fundamental approach in the formation of a long-term strategy and noted, that despite the positive key indicators of the fishery complex of Russia, there are a number of interrelated development issues, which need to take fundamental decisions. A preliminary analysis has allocated seven strategic forks:
1. Fish catch – how it can and should grow?
2. Deepening of processing - a slogan or a necessity?
3. Specific niche - can be a strategic growth points?
4. Aquaculture - a niche or the driver of the industry?
5. The historical principle - to maintain or upgrade?
6. Improving of the regulation – where the control should be weaken, and where should be more control?
7. Is it necessary to encourage increasing consumption of fish products in Russia, and how?
Development of the program involves a detailed analysis of the current state of the Russian fishery complex, actual performance of industry compliance requirements for the Doctrine of food security, as well as analysis of the possibilities to change the volume of imports and exports in the case of the implementation of internal and external threats to the food market. It will also explore the potential of investment activity in the fisheries sector, including analysis of the payback period and the rate of return on investment, and it assess the need for state support. Serious consideration will be given to the analysis of administrative barriers in the industry, which weaken will give the positive predicted effects.

The Federal Fishery Agency opposed the direct subsidy of the Far Eastern suppliers of fish to the European part of Russia.

"We insist that rail fare should be subsidized, because it is easier to administer," - said the head of the agency. In this regard, Federal Agency for Fishery developed a draft regulation on the subsidize of the rail fishery complex products from the Far East to the European part of Russia in the conditions of the food embargo on the instructions of Russian President Vladimir Putin on 24 September. The document is currently co-ordinated by inter-ministerial commission.

 The Russian Ministry of Agriculture together with the Ministry of Economic Development, the Federal Customs Service and the Federal Agency for Fishery consider "the establishment of protective duties on the export of salmon currently premature," expresses the response letterof the State Secretary - Deputy Minister of Agriculture of Russia Andrei Volkov. Draft introduction of protective duties was proposed by the Primorsky Krai Governor Vladimir Miklushevsky during the September 17 meeting with Vladimir Putin. "We can not raise taxes, not introduce restrictive measures, not export products, and be able to process in our own", - warned the head of state and entrusted the Cabinet of Ministers to consider the matter.

The Ministry of Agriculture of the Russian Federation considered the consolidation of the duties of the foreign companies purchase water bioresources through exchange trading ZAO “Dalnevostochnaya rybnaya birzha” to be premature. Such a proposal was put forward by the President of the Russian Union of Commodity Producers, O.N. Soskovets in the report to the Government of the Russian Federation of July 24, 2014. "... This method leads to entertaining rise of prices of goods for the end consumer," - says the Ministry of Agriculture in a written reply. Compared with the previous week, there are the following changes in prices for fish products (according to the site www.fishnotice.com). Table 1 shows the prices of fish products to Vladivostok, as the city is called the most convenient point for the calculation of the price in other regions of the country. All the prices in other regions, in this case would be calculated on the basis of - price in Vladivostok + road to the calculated area.
                                                                                                                                         Table 1. Changes in prices for fishery products for the 06.10.2014-12.10.2014 Name of fish Price, r \ kg difference, r \ kg at 06.10 at 12.10

At the end of the week, significant changes in the fishing industry did not happen. It is necessary to focus on a suggestion of the Development of the Ministry of Agriculture to eliminate exemptions from payment collection "in respect of exports in the form of unprocessed catches of aquatic biological resources". Presumably the law will come into force in 2015.

Changes in the prices of fish products in the Primorsky Territory are negligible and are oscillatory.
The review prepared:
Vyacheslav Matsyha
Yuri Levchenko
Department of Customer ZAO "Dalnevostochnaya rybnaya birzha"
Phone / fax: +7 (423) 2279913
dvrb2014.ru, дврб2014.рф