Department of Food Resources

For the purpose of realization of the Food Supply Programme of the city the Department wages a qualifications competitive selection of wholesale trade subjects, of farm producers and of presented annual wholesale buying programmes annually.

The underlying principles of the carrying out of the qualifications competitive selection are the creating of equal competitive conditions, the publicity and the demands singleness, the estimator objectivity for all partakers.

To a qualifications competitive selection wholesale trade subjects and farm producers of all forms of ownership are called, those are registered in the Russian Federation as established by law, specialize in the manufacture or delivery of the main social important kinds of provisions and have no claim to property in form of the arrest, no brought actions regarding bankruptcy and perform their tax liability for every budget level and compulsory payments into State non-budgetary funds in time.

With the organization, which passed the qualifications competitive selection, General Agreements or Cooperation Agreements on supplying of the city of Moscow with farm products, raw stocks and provisions are to be concluded. These organizations are allowed to compete for the delivery of the farm products and provisions by order of the city and in the municipal reserved food fund, as well as to take part in a qualifications competitive selection of investors and investment projects. The organizations, which concluded a General Cooperation Agreement, receive the financial support from the city budget for the realization of the presented annual wholesale buying programmes by the collection of interest in the amount of ¼ of the refinancing rate for minimum level of supply and ½ of the refinancing rate for floating procurement activities.

Active partakers of the carrying out of programmes for the development of the wholesale trade and food supply of Moscow, those steady work with the Food Supply Department as part of cooperation agreements for several years, in accordance with the Resolutions of Moscow Government of November 1, 2005 No 859-PP receive the title “Supplier of goods, works and services to the city of Moscow”. The title “Supplier of goods, works and services to the city of Moscow” was established by the Moscow Government to create an effective system of the engaging into municipal competitive process of the most qualified production suppliers of Moscow as well as to increase the grade of supporting of municipal orderers and customers by the choice of quality goods, works and services.

The Title is confered for one year by a decree of the Moscow Mayor in accordance with the Statute on the Title. Upon the expiry of one year the Title could be confirmed by the way, that is identic to the titling way.

The supplier, those have the Title, receive a diploma of conferment (confirmation) of the Title “Supplier of goods, works and services to the city of Moscow”. The diplomas can be given out by the Moscow Mayor, the municipal government complexes administrators, the administrators of Moscow Departments, the administrative district prefects or by other functionaries of Moscow in accordance with order of the above said persons.

A supplier has a right to order the symbol “Supplier of goods, works and services to the city of Moscow” with the picture of the Moscow emblem by own means and use it for the duration of the Title. The symbol making is carried out by the Technical organizer in accordance with the set forms.

The Supplier, that has the Title, has a right for the duration of the Title:

— to mark his goods, works and services using the Title;

— to use the Title and the picture of the Title “Supplier of goods, works and services to the city of Moscow” with the advertising purpose.

The transference of the diploma of the conferment of title by Supplier to other legal bodies or individual entrepreneurs is banned.

The Title is set (confirmed) to Suppliers on presentation:

— by municipal orderers to the Suppliers, those for two last years won tenders (auctions, competitions), concluded and qualitatively performed government contracts at least two times;

— by Commissions to the Suppliers, selected on the ground of criteria, those are defined in the city administration complexes, Departments of Moscow, administrative districts prefectures of Moscow, other constitutions and enterprises, competent to the Government executive bodies of Moscow as well as in association of enterprises and consumers;

— by Commissions to the Suppliers, selected on the ground of criteria, those are defined in certification bodies, competented to carry out the carry out the certification of products, those are delivered to municipal orderers (consumers) by legal bodies and individual entrepreneurs, in a corresponding certification system.

It is possible to have a look at the Resolutions of the Moscow Government of November 1, 2005 No 859-PP and at the Statute on the title “Supplier of goods, works and services to the city of Moscow” (the supplement 3 to the Resolutions) on our website in the chapter “Laws” (see Moscow).

The Statute of the Moscow Mayor of December 27, 2005 No 95-UM “On the conferment of the title “Supplier of goods, works and services to the city of Moscow”.

The whole work on the agricultural raw materials and food supply of Moscow is carrying out with account of the strengthening of relations with the constituents of the Russian Federation under multiregion cooperation agreements, signed practically with all Russian regions. On this base the city resources of the full milk production, eating eggs, potatoes and vegetables, to a great extent of grain, grits, oil, dried milk, fish production and other goods form completely. The priority of provisions procurement activities in the Russian regions is a strategic line of the food policy of the Moscow Government.

Moscow wants to be not only a buyer and a certain payer, but also to take part in the agroindustrial complex rebirth of our country. Any provisions delivery expansion in the capital is considered only with reference of the increase in production, produced with the help of Moscow. The integration of the Moscow enterprise wholesale food complex with region manufactures is the base, that allows to work on output growth in the agroindustrial complex most efficient, to help by creating of steady primary zones and by increase of delivery of domestic food in Moscow.

Now Moscow undertakings create an own steady raw material base in regions, that provides guaranteed food supply of Moscow.

A course for a large integration was set in 2003, when the Moscow Government defined the main activity directions by the Resolutions of June 04, 2002 No 415. To that moment some Moscow enterprises began already to form agro-industrial holdings, including 35 integrated region enterprises of the agro-industrial complex.

By the Resolution of the Moscow Government of September 21, 2004 No 635 a special programme of the integration of Moscow food complex enterprises with agricultural producders of the regions for 2004—2006, worked out by the Department, was approved.It has as a base the concrete investment projects and foresees the delivering of about 1 million tones of various typrs of agricultural raw materials and provisions in the first place grain, grits, meat, milk, potatoes and vegetables in Moscow.

As a part of the program the great Moscow enterprises, such as AVK “Exima”, OAO “Ikma”, ООО “Agrogroup Continent”, ООО ZK “Nastyusha”, ООО APK “Cherkizowskij”, ZAO “АМС-Agro”, ZAO “System Zerosnandard”, ZAO “Mikojanovskij meat-packing plant”, ОАО “Ostankinskij meat processing plant”, as well as number of horticultural enterprises has created integrated structures in form of agroholdings with producers in 19 Russian regions.

For two last years enterprises of the wholesale food complex of Moscow invested in the integrated agricultural sector above 8 bln. Roubles, including1.3 bln. Roubles using concessionary long credits from the funds, intended for food supply of the city.

The number of agroholdings with Moscow enterprises as main founders and investors should increase till 20 and the number of presented enterprises of the agroindustrial complex till 100.

Such Moscow enterprises as the meat factories Mikoyanovskij and Cherkizovskij provide their demand for raw materials 70—80% on account of deliveries from integrated units, and the horticultural connections “Krasnaya Presya” and “Novye Cheremuscki” use potatoes and vegetables from own plants on 100%.

The benefit of the Moscow integration model is therein that it is founded on the private — state partnership and has a support of the Government executive bodies of subject of Russian Federation. This model is related on the cooperative system, which allows carrying out long-time trade economic relations between Moscow consumers and region producers by the budget support, providing the guaranteed sale of agricultural raw materials and provisions.

Moscow holdings have as a rule a closed cycle — from the production till the realization immediately into the retail chain.Such production has a high quality and is in a big demand by citizens.

The creating and development of agro-industrial holdings by Moscow enterprises helps to change the appearance of villages. As a rule the demographic situation in a village become well, the employment of citizens increase, the infrastructure is developed, roads, schools, hospitals and cultural constitutions are built.

For Moscow the integration is firstly an avoidance from the import dependence by food supply, an increase of guaranteed orderly food deliveries in the city.

A new impulse the integration receives from the partaking of enterprises of Moscow in the realization of the initiated by the President of the Russian Federation V. V. Putin priority national project “Development of the agroindustrial complex”. The Moscow Government concluded a cooperation agreement on the realization of this project with the Department of Agriculture of the Russian Federation. (The information about the work in this direction is to have a look at in the part of the Department website “National project “Development of the agroindustrial complex”).

One of the priority directions in the international activity of the Department in the agro-industrial region is an expansion of the cooperation with our nearest neighbors and partners in the CIS-countries and in the Baltic States. The Moscow Government signed above 100 bipartite documents of a complex character, which foresee wide-ranging contacts of Moscow enterprises and organizations with economic entities of the CIS-countries and of the Baltic States, including in the region of the agriculture, provisions and trade.

Moscow is intended to deepen the traditional partnership with the CIS-countries. A support for this is firstly deep integration relations of cities, branched historically formed cooperation on the level of enterprises and branches. Moscow organizations of the wholesale food complex need some types of the agricultural raw materials and provisions, which can be delivered from the CIS-countries. But Moscow producers have an enough export potential to deliver production on the large market of these countries.

The foreign economic cooperation of the Department with foreign countries appeals to help on the attraction of foreign investments, on using of the foreign experience and current technologies in the agroculture and thefood processing. The development of business relations of wholesale food complex enterprises of the city with foreign partners change the direction from the provisions import to the buying up of current technologies, high-production equipment, best cattle and birds breeds, seeds of high-yielding agricultural plant variety.

The Department builds the base for the business contacts expansion of economic entities, developing the cooperation with state and municipal structures of foreign countries. For the last years the Department signed bipartite cooperation documents with number of foreign partners [Brazil, Bulgaria, Hungary, Germany (Bavaria), Greece, Spain], which regulates the carrying out of mutually profitable projects, targeted on the capital market saturation with various goods, on the expansion of the investment cooperation, on the implementation of advanced technologies, creation of joint manufactures, on the further personnel training.

As a part of the realization of the Priority national project “Development of the agroindustrial complex” Moscow agroholdings reconstruct provided and build new animal production units, buy advanced equipment in Germany, France, Austria, Belgium, Sweden, Denmark and other countries, what allows to capital enterprises to expand their product range in accordance with European standards.

Following the results of conversations with representativs of German wholesale and retail chains the Memorandum was signed between the Food Supply Department of Moscow and the company “Metro Cash and Carry International GmbH” on the cooperation in the region of the production, processing, offtake and sales promotion of food products, which are produced by Moscow enterprises, through the distribution networks and shops of this company in Moscow, regions of the Russian Federation and in West Europe.

Having a large export potential the number of Moscow enterprises certifies their production actively according to the EU standards and is ready to expand their product line and export delivery geography.

At the present time some types of milk, meat and fish specialties, which already appear on the Europe market, are certified. Moscow confectionery and alcohol products are in great demand abroad.

The main advantage of the mentioned products is a high quality and food safety guarantee.

Year by year the part of international exhibitions and expositions with a voluminous business program grows by the development of external relations of the city.

By the organization support of the Food Supply Department of Moscow since 2003 food complex enterprises of the city take part in the International agro-industrial exhibition “The Green Week” in Berlin. During this exhibition the Department forms and realizes a business program, target on the improvement of the international capital prestige and on the development of the cooperation.

The Department of Agriculture of the Russian Federation together with the Moscow Government annually holds the Russian agroindustrial exhibition “The Gold Autumn” in the capital as a part of the Russian agroindustrial week.

The partaking of numerous region enterprises in the exhibition allows to enter into trade economic cooperation for a steady food supply of the capital, during business meetings with Government executive bodies administrators of the constituents of the Russian Federation, other official personality and business representatives it is possible to discuss questions, related to a mutually profitable multiregion cooperation in the food branch.

For the purpose of the achievements showdown of the capital food complex and of the improvement of the international prestige the Department takes part in Moscow joint expositions, which take place in regions of Russia and abroad.