Processing industry

A great role in the development of the republic's economy belongs to the processing of locally produced raw product by the enterprises of food and light industries: products of plant growing, wool, fur sheepskin, leather, etc.

Food industry

Depressive condition of the agroindustrial complex, absence of material incentives, weak technological base of the existing enterprises, growing gap between the output potential and solvent demand have a negative impact on the effectiveness of food industry enterprises.

Ineffective work of the food producing enterprises holds a negative influence on the filling of the republic's food market and, as a consequence, leads to an increase of product share supplied by the neighboring regions (Stavropol and Krasnodar Territories, Volgograd and Rostov Oblasts). Most of such products are milk, dairy products, sausages, confectionery, macaroni and cereals.

A number of measures was taken in the republic in order to vivify the processing inductries and gradual transformation of the ecomony's model in which growth is secured by quickly accelerating development if processing and promotion of all the favorable factors: structural, technological and organizational.

The main development directions of the food industry take into account the important social and economic value of high quality food supplies:

• increase of the competitive strength of the product by employing up-to-date technologies;
• deep meat processing with more comprehensive use of concurrent and secondary products of slaughter and development on its basis of new meat products with higher nutritional and biological value;
• construction of infant nutrition plant;
• reduction of flour, macaroni and cereals, vegetable oil imports from other regions.

Arshansky Meat Plant was defined as a basis for deep meat processing with more comprehensive use of concurrent and secondary products of slaughter and development on its basis of new meat products with higher nutritional and biological value. The plant is a large meat processing enterprise with the rated capacity of 10080 tons of meat, including by-product of Category 1 and 1000 tons of sausages. A shop with the capacity of 300 heads of neat or 2000 heads of small cattle per shift is operated at the moment.

In order to realize this project the resolution of the government dated February 29, 2000 #51 "On purchase of agricultural products, raw materials and foodstuffs to the republic's fund in 2000" entrusted the functions of the state customer buying, processing and storing meat to Arshansky Meat Plant.

Due to the geographic location, specific ethnic charm, availability of federal highways, coastline of Caspian Sea, Kalmykia is favorable for tourism.

After the construction of the federal highway to Mineralnye Vody crossing the Republic of Kalmykia, and organization of the national tourist and entertainment jurt center "Jangarland", touristic sanitary center "Buzga" the transit traffic flows will increase by 5 times. Transit tourist is a potential consumer of paid services, especially catering and consumer ones.

All these predefine organization of complex for processing of agricultural products (meat and vegetables) in Troitskoye, i.e. on the route of the greatest tourist flow.

In order to meet the needs of the transit flows it is planned to process 4 tons of meat, 3 tons of vegetables per day, produce 2 tons of sausages, 1200 cans of tinned vegetables. Besides, it is projected to carry out drying of 260 tons of onions and vegetables. The net income shall amount to 1.6 million rubles. This will create 63 new jobs.

The most invaluable wealth of any nation is children. The number of minor in Elista shall be as follows by the year 2005: below 1 year old - 6953, 1 to 2 years - 7200, 2 to 3 years - 7423.

It is planned to build an infant nutrition plant in Elista in order to provide full-value ecologically pure infant nutrition with the capacity of 15 tons per shift (in milk recalculation).

The net profit shall be 2 million rubles. 58 new jobs will be created.

In order to reduce the amounts of flour, macaroni and cereals brought from other regions it is planned to build a mill with the capacity of 80 tons per day in Yashalta. The mill will provide flour, semolina and macaroni to the population of the republic and also meet the necessities of the neighboring Stavropol and Krasnodar territories.

An important role in the food resources belong to the fishing industry.

The republic possesses a number of internal water pools with the total area of 50 thousand hectares, 30 thousand of them are used for fish-breeding.

Productivity of the Kalmykia's sector of Caspian Sea allows to increase the fishing amounts to 5 thousand tons. But now these resources of the Northern Caspian Sea are used ineffectively. The fishing quota alotted to Kalmykia is annually developed by 75-80%.

In the present time the decrease of the natural reproduction rates of sturgeons insists on intensification of industrial reproduction. It is necessary to build:

• sturgeon fish breeding plant in Lagan with the capacity of 7 million whitebaits with the weight 7-10 grams;
• sturgeon station in Lagan with the capacity of 50 tons of sturgeon:

The Republic of Kalmykia possesses a considerable productive potential for breeding 550 tons of pond fish per year. This requires a reconstruction of 580 hectares of pond areas and construction of spawning stations to produce 15 milliom tons of fine-mesh fish per year.

Output of "Kaspiets" collective farm

Increase of fished amounts stipulates broadening of the processing productive capacities. Therefore it is planned:

• to reconstruct the Lagan Fish Processing Plant to enable vacuum packaging of the output and production of canned fish;
• to build a fish processing plant in Jugelta capable of processing 250 tons of fish.

Light industry

In the past the light industry played a considerable role in the republic's economy, starting from the budget forming and to meeting the population's necessities in goods of first priority. By 2001 this sector showed the highest rates of decline. Approximately 80% of the capital assets cannot be enabled without reconstruction or replacement. Because of the rapid expansion of imports the solvent demand grows lower. It is the matter of near future to serously transformation the sector both organizationally and technically.

One of the main directions of light industry's structural reconstruction is the development of deeper processing of natural wool, fur sheepskin, furs and leather into consumer goods.

Wool processing

Further development of the republic's merino wool base requires finalization of the construction of stage 2 of Elista factory of primary wool processing "Elmi".

Elista factory of primary wool processing "Elmi" was launched in 1996. The capacity is 20 tons of wool in initial weight. The factory is equipped with the modern automated equipment and has advantages over the existing matches, primarily in power-consumption of the final product.

Organization of deep processing of fur sheepskin and raw leather also requires completion of the construction of leather plant "Arschi".

Tailoring of fur coats

The specialists of the plant all have the corresponging degrees and have been additionally trained in Spain and Italy.

The development of the leather plant makes provision for the broadening of the assortment and increase of the output amounts of fur and leather products, improvement of the processing technologies for the local raw materials, use of domestic chemicals and dyes, reconstruction of the laboratory of chemical analysis, advances environment protection.

Development of the light industry will promote the improvement of the production standards, lowering of the production by-costs, raise the profitability by 20%.