The Government will support malting barley and hop producers (2015-06-16)

In May 20, 2015 according to the request of the President of Barley, Malt, Hops & Beer Union A. Mordovin, there was a meeting of representatives of the brewing industry led by the Chairman of the Government of the RF A.G. Khloponin. Topics, concerning support of malting barley producers and also hop renewal problems have been discussed within the meeting:


7. Improving of production of high quality raw materials for brewing and wine industry (malting barley, brewers’ malt, hop and grapes) due to fixing of a minimal threshold for domestic raw materials use in alcohol production;

There is a proverb in Germany for hundred years – “If you drink beer, you support agriculture”. It is true, because 100% of raw materials for beer: malting barley, malt and hop are produced in Germany.

Unfortunately, the situation in the RF differs. Transnational brewing companies prefer to purchase raw materials in places where it is cheaper, so they top up accounts of foreign agricultural producers (Argentina, Denmark, Sweden) and Russian agrarian sector loses profit.

It is necessary to renew Russian hop production, so it will provide budget revenues near 5 billion rub. to the agricultural complex of the RF and give employment for 300 peasant farm enterprises.

According to the results of the meeting:

  1. The Ministry of Agriculture (A.N. Tkachev), The Ministry for Economic Development (A.V. Ulukaev), the Ministry of Finance (A.G. Siluanov), the Federal Service for Alcohol Market Regulation (I.P. Chuyan) were charged with a task to study the issue, concerning the state support of malting barley and hop production in the RF.

This question will be reviewed by the Ministry of Agriculture of the RF in the nearest time. Our Union offers to form two working groups in order to implement the State Program “Production of high quality raw materials base in 2015-2025”:

– measures package for support of malting barley production;

– renewal of hop production in Russia.

The key component of the Program is “Beijing Program” created by Barley, Malt, Hops & Beer Union in cooperation with Grain Producers’ Union (

The Government can give support in the form of subsiding of special investment projects for:

– purchasing of chemical agents and basic seeds;

– chalking and phosphorite application of acid soil and plastering of sodic soil;

– modernization of analytical and material-technical base of the Grain Quality Research Centre of the Federal Service for Veterinary and Phytosanitary Surveillance and institutes of the Russian Academy of Science;

– modernization of material and technical base of experimental seed production farms;

– payment of interests on investment credits for construction, reconstruction and modernization of capacities for grain holding, storage and shipment;

– payment of interests on short-term investment credits for purchasing of physical resources and technological equipment;

– reimbursement of expenses for payment of insurance premium according to the crop insurance agreement;

– reimbursement of expenses for laying and handling of hop garden for 5 years;

– reimbursement of expenses for purchasing of mineral fertilizers and plant protecting agents;

– reimbursement of expenses for repair, reconstruction and construction of trellis;

– reimbursement of expenses for payment of interests for investment loans and state credits for equipment, transport and special machines for hop processing;

– reimbursement of expenses for produced and sold hop during three years within the Program activity;


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