First support steps of the Ministry of Agriculture towards malting barley, malt, hops and brewing producers (2015-08-10)

According to the address of Barley, Malt, Hops & Beer Union to the Government of the RF, the Ministry of Agriculture, the Deputy Chairman of the Government A.G. Khloponin and guided by the State program for the development of agriculture, raw materials and food for 2013-2020, first support steps towards companies of the production chain “malting barley – beer” and further actions directed to calm the situation in the brewing industry have been taken.

It bears noting that Government subsidy rates for the companies of the production chain “malting barley – beer” were increased:

– reimbursement of expenses for purchasing of malting barley basic seeds – 4.500 rub./t. that three times as much as in 2014 (1.520 rub.);

– reimbursement of expenses for establishing of hop yard – 80% of expenses but no more than 53.940 rub. per 1 ha. that two and a half times as much as in 2014 (21.000 rub.);

– reimbursement of expenses for hop yard cultivation till the beginning of its fruit-bearing – 80% of expenses but no more than 20.764 rub. per 1 ha. that nine times as much as in 2014 (2.300 rub.);

The Ministry of Agriculture has also drafted the project concerning amendments covering allotment and granting of subsidies from the Federal budget for constituent entities of the RF in order to support economically viable regional programs focused on the development of agriculture “Development of traditional crop sub-industries”, including hop production.

According to the letter No 19-04-03/32168 of the Ministry of Finance dd. 02.06.2015, Barley, Malt, Hops & Beer Union was preparing necessary calculations, grounds and estimates of social-economic, financial and other consequences resulting from implementation of measures focused on additional government support of malting barley, malt and hop producers.

The following measures:

– necessity for inclusion of the item “brewer’s malt” under the code 918411 (JR 005-93) into the point 6 of the List of Products of the primary and (or) industrial processing, made of agricultural raw material, attached to the draft Government Decree № НФ-21-07/4961 dd. 15.04.2015;

– delegation of powers to the Ministry of Agriculture, namely, the issue concerning production control over brewing products made of natural raw materials in a similar way to wine production, assuming that the Federal Service for Alcohol Market Regulation will stay responsible for brewing products circulation.

There is a strong co-relation between production chains “barley – beer” and “grapes – wine” and agriculture and there are common technological processing peculiarities: brewing and wine products – low-alcohol fermentation product made as a result of manufacturing processes of natural raw materials of the Russian origin: grape, hop and brewers’ malt.

We believe that legislative regulation of brewing and wine products must have a number of common features and participation of the Ministry of Agriculture as a regulator of the brewing industry is absolutely logical. The Ministry of Agriculture supports this issue.

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