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Social and economic situation of the Municipal Formation

The Municipal Formation Novopokrovskaya District is located in the north-eastern zone of the Krasnodar region, between 4544' 4620' north latitude and 4020' 41 east longitude. The Cossack village of Novopokrovskaya is an administrative center of the district.

The area of the district is 2,156 square km (2.9% of the Krasnodar region), including 1,754 square km of farm fields.

The longest extension in the district from north to south is 80 km, and from east to west is 30 km.

The boundaries of the district were established in 1966. The district shares its borders with 7 subjects, including 2 ones of the Russian Federation and 5 districts of the Krasnodar region. The district shares borders with Rostov Region and the Krylovskaya district in the north, with the Stavropol region and the Caucasian district in the south, and with the Tikhoretsk and Pavlovskaya districts in the west. The nearby towns are Tikhoretsk and Kropotkin.

Transport consists of automobile and railway vehicles handling interurban and international traffic.

The total automobile road mileage makes 404.45 km.

The district is connected with the regional center by the railway "Krasnodar Volgograd" (Yeya and Rovnoye stations) and a highway of regional significance "Tikhoretsk Salsk" that crosses the district from the southwest to the northeast. The Cossack village of Novopokrovskaya is located between major industrial centers Krasnodar, Rostov-on-Don and Stavropol within a radius of 200 km.

The basic natural resources of Novopokrovskaya district are agricultural land plots. The municipal formation Novopokrovskaya district is one of the largest municipalities in Krasnodar region in terms of the area of agricultural lands. The land fund makes 216 thousand hectares (2.9% of the territory of Krasnodar region), including: 176 thousand hectares of cropland, 401,36 hectares of orchards and 200 hectares of forestry.

The territory of the district is included into a steppe zone of ordinary and southern black soils. The soil resources ensure high yields of released agricultural crops. Currently, all lands suitable for agricultural use are plowed up. Due to this fact, the natural vegetation is preserved only along the bottoms of deep beams, in the floodplains and represented by reeds, ane and other water intensive crops. Neolandscapes are also wide spread.

The district is located in a non-forested steppe natural zone. The forest was grown through human labor and represents an anthropogenic landscape, except for riverine beams. Novopokrovskaya forestry farm was established.  Novopokrovskaya plot of state reserve farm is located there.

Novopokrovskaya district has conditions to form two groups of mineral deposits. Principally, those are energy commodities gas and construction material brick clay.

The total population is 43,005 people (according to 2015). Economically active population is 41.5%.

The actual growth rate of the sold volume of products in 2016 (latest data) as compared to 2012 made 166,2%.  Over the last five years, the cash income of the community has grown by 30%.

The economy of the municipal formation is presented by the following industries: agro-industrial complex, industry, trade and transport. The basic specialization of the district economy is agriculture.

More than half of all those employed in the district are working in agricultural sector. 63.0 % is accounted for agricultural complex within the total volume of basic industries of the district economy.

Following the results of 2017, all enterprises of agro-industrial complex (AIC) are profitable and steadily operating. 176 thousand hectares of cropland are in the district, of which around 70% is processed by small entities.

The prevailing industry in AIC is rop production. Over the last years, one can witness a growth in the gross harvesting of agricultural crops, primarily, due to the application of new highly reproductive species. In the year 2017, 80% of cultivated areas was cropped with seeds of high reproductions. The farms of all forms of ownership collected 654.6 thousand tons of grain and grain legume crops with the crop yield of 50.1 centners/hectare. In 2017 Novopokrovskaya district produced 15.3 tons of grain per capita.

The measures aimed at strengthening the supply base of agricultural production, retrofitting and support of high availability of the existing fleet of vehicles enabled to achieve good results in the crop production.

The enterprise of agricultural engineering "Novopokrovskagromash" located in the district and focused on manufacturing tillage machines renders substantial support and assistance to the district farmers in the matters related to upgrading the fleet of soil treatment equipment. The production facility and personnel enable to manufacture competitive products and over the needs of agricultural producers of this district in disk tools, cultivators and chisel plows.    

The production of the industrial products in the district is carried out by 16 enterprises, including 5 large and medium-sized ones. The fundamentals of the district industry are manufacturing activities accounting for more than 98% of the shipped industrial products in the district following the results of 2017. The sugar production by OJSC "Vikor" prevails in this sector.

In 2017, the situation on the consumer market remained stable and was featured by a high level of saturation with food and non-food products.  

The small and medium-sized entrepreneurship accounts for more than 2,312 thousand units with a number of employed 6103 people. In 2017, the turnover of small enterprises equaled 10,727 bln rubles with a growth pace of 104% as compared to the level of 2016. The small entrepreneurship sector is basically focused on trade, agriculture and public services sector. The medium-sized enterprises are largely presented in agricultural sector.    

One of the key objectives for developing the economy of Novopokrovskaya district is to attract investments to efficient and competitive productions. Due to this fact, the administration of the municipal formation Novopokrovskaya district has established mechanisms for interfacing with investors and committed itself to attain the strategic goals for developing a rural area, its resource capacities in the priority directions.

According to 2017 evaluation, the total volume of investments into the economy of the municipal formation made 617 mln rubles. Basically, these are the funds from the enterprises active on the territory. However, this is not sufficient. The main efforts are focused on attracting investments to establish new enterprises.

To ensure the growth of investments into the economy of the municipal formation the following system of investment support measures with equal access for all categories of investors is applied:

- actual investment offers (projects, sites with assigned plots with good infrastructure and transport infrastructure and full package of accompanying documents) are formed specifically in those promising sectors of economy of Novopokrovskaya district where it is worth for an investor to put financial investments to reduce the recoupment period of the project and derive high profits in a short-term period these are agriculture and processing industry, manufacturing activities, consumer sector, construction and fishery complex;

-  The Strategy of socio-economic development of the municipal formation until 2020 was accepted and publicized. Owing to this Strategy, investors can trace the development trends of Novopokrovskaya district. A step-by-step action plan for implementation of the Strategy for socio-economic development of the municipal formation for the current year is developed on an annual basis with follow-up execution monitoring;   

- the investment portal of the municipal formation Novopokrovskaya district (both in Russian and English) is kept and updated on ongoing basis. The investors, including the foreign ones, can find all relevant information there;

- positioning of the municipal formation Novopokrovskaya district at annually hosted international investment forums in the city of Sochi. The main objective of the administration when participating in the forum is to present an investment potential of the municipal formation and attract investors to the district economy. Following the results of participation in the forum over the last five years, the municipal formation Novopokrovskaya district has signed 28 agreements worth 1430 million rubles, the fact that as of the date of implementing the investment projects would enable to create more than 570 new jobs.

Among the completed large-scale projects over the last five years across the territory of the municipal formation Novopokrovskaya district it is worth highlighting two most significant ones for the district economy. One of them is "Reconstruction of a sugar plant to enhance production capacity up to 7,000 tons per day" (2008-2014) with investment volume of 820 mln rubles and securing more than 650 jobs with an average salary at the enterprise 33,388 rubles. The primary economic effect from implementing the project was the replacement of an old equipment for a more technologically sophisticated, the fact that enabled to significantly increase the sugar beet processing volumes along with the dramatic reduction in the specific power consumption and auxiliary materials as well as to decrease losses in sugar production. As of today, the plant has reached the level of production capacity of 7,000 tons of sugar beet per day, the production capacities of the plant are loaded up to more than 100%. During the period 2014-2016, the enterprise transferred 1,402 million 213 thousand rubles to budgets of all levels.

The second large investment project implemented at the end of 2014 "Construction of a complex for production, storage, processing and canning of fruit and vegetable products", investor Agricultural Production Cooperative "Kolos". Since 2008, it has disbursed investments for the total amount of 100 mln rubles. The implementation of the project enabled to create 40 new jobs with an average salary of 25 647 rubles. The economic efficiency of the project is presented by the following basic indicators: annual proceeds 91 765 thousand rubles, net profit 411 447 thousand rubles, internal rate of return 55%. The annual production capacity of the investment project: fruit and berries 2066 tons, vegetable crops 1000 tons, canned fruit 9 tons, fruit compotes 72 thousand liters. During the period 2014-2016, the enterprise transferred 22 million 824 thousand rubles to budgets of all levels.

In 2017, four investment projects on establishment of intensive type orchards with the use of trellis method for growing fruit trees were completed at a time:

-  OJSC "Rainbow" on a land plot area of 63 hectares. The investment amount under the project made 142 mln rubles. The project implementation enabled to create 32 jobs with an average salary of 19 thousand rubles, annual tax deductions 12 mln rubles, annual project capacity 8000 tons of fruit;

- Agricultural Production Cooperative "Kolos" on a land plot area of 118 hectares. The investment amount under the project made 44,5 mln rubles. The project implementation enabled to create 77 jobs with an average monthly salary of 18 thousand rubles, expected annual tax deductions will make around 12,4 mln rubles, annual project capacity 11500 tons of fruit;

- Private entrepreneur Shaginyan Smbat Karlenovich 32 hectares, investment amount 9 mln rubles, jobs with an average monthly salary of 18 thousand rubles, annual tax deductions 0,8 mln rubles, project capacity 2500 tons of fruit;

- Private entrepreneur Starodubtseva Svetlana Nikolaevna 24 hectares, investment amount 7,3 mln rubles, 5 jobs with an average salary of 17 thousand rubles, annual tax deductions 0,6 mln rubles, project capacity 1,800 tons of fruit.

The construction of a cultural & entertainment center in the Cossack village Novopokrovskaya is still under way. For the time being the project has entered into its active phase of construction, 76,5% of the total investment amount utilized. Following the investor solution to expand the construction volumes by adding a bowling, a swimming pool and a SPA-center into the structure of the cultural & entertainment center, the investment amount was increased up to 130 mln rubles.  The project implementation would enable to create 28 jobs with an average monthly salary of 30 thousand rubles, annual tax deductions 12,3 mln rubles, project capacity per year: bowling services 25 056 hours/lanes, film show 187 200 seats/show, film show VIP zone 2880 seats/show, throughput capacity of the swimming pool 16400 people, of the SPA-center 3200 people.

Within the framework of contribution to the development of agro-industrial complex, the municipal formation Novopokrovskaya district annually takes part in agro-industrial exhibitions "Kuban Fair", "Golden Autumn", "AgroTour". The winner of the competitive selection of the departmental target program "Organization of rural manors in small populated areas of Krasnodar region" from Novopokrovskaya district was A.A.Pechorin, who received a subsidy to construct a residential house and household facilities on a land plot area of 2.8 hectares.  

In order to set up favorable conditions for development of small and medium-sized business, the municipal formation Novopokrovskaya district holds ongoing activities for SMEs, inter alia, within the scope of SME participation in conferences, meetings, round-table discussions, training workshops, annual exhibitions-fairs. Over the period 2012-2016 the support was rendered to 19 SMEs in the form of subsidizing a portion of salaries to pay initial fee when concluding a financial lease agreement (leasing) or with relation to payment of interest on loans raised with the Russian lending organizations for purchasing equipment in order to create and (or) develop or upgrade the production of commodities (works, services) or at an early stage of entrepreneurial activity for the amount of 19 119,8 thousand rubles, of which 1261,9 thousand rubles are at the expense of local budget funds and 17857,9 thousand rubles are at the expense of regional and federal budgets.

The social sphere is actively developing in the district. The organization of the work of the health care service in the district is one of the priorities of the Municipal Formation. The municipal budgetary institution of the public health service Central District Hospital of the Municipal Formation Novopokrovskaya District provides these services. As a whole, this is one of the biggest of labor collectives in the district, where 731 people are employed. The health care system is represented by health care institutions the central district hospital, which includes outpatient departments for adults and children, as well as obstetrics and gynecology, dental and emergency departments. The education system of the Novopokrovskaya district includes 20 educational institutions, 2 supplementary education institutions and 19 pre-school educational institutions. The district not only has a network of cultural institutions and supplementary education for children, but also provides them with full content of their work that deserves a positive assessment of the residents of the district and is highly appreciated at the regional and federal levels.

The products of the local agricultural producers comply with the current demands in import substitution and successfully ensure food safety of the population as well as secure a sustainable forage base for the development of husbandry in the district due to a steady increasing grain crop yield.

The primary focus in the district is put on further development of priority agricultural industries, processing and sales of crop and livestock products, implementation of investment projects in agro-industrial complex, upgrading of technical and technological base in agriculture as well as support to small forms of farming in a settlement and integrated development of rural territories. To develop a husbandry complex the municipal formation Novopokrovskaya district takes all necessary measures contributing to boosting farms. Particular attention is given to the development of alternative husbandry types by accompanying investment projects assuming the construction of new farms or reconstruction of the existing complexes and by providing a state support.

To improve the social and economic level of the district, the Administration of the Municipal Formation take an active role in the development of engineering and communication infrastructure: construction and repair of water supply systems, gas pipelines of high and low pressure and roads, which in turn is a good precondition for attracting investments. The principles of the work of the municipal authorities are as follows: priority consideration of all projects and documents related to business development, support an effective owner, the implementation of organizational support of investment projects, participation in exhibitions and fairs of regional and federal levels, bringing to the enterprises of the Municipal Formation information about possible forms of support for investment and the publication of news in the investment field on a permanent basis.

The Administration of the Municipal Formation Novopokrovskaya district is open for cooperation with Russian and foreign partners and is ready to consider any mutually beneficial proposals. Ultimately, our efforts are aimed at solving the most important social objective improving the living standards of the district population. Everything that is done to improve the investment attractiveness of the Municipal Formation contributes creating new jobs, reducing unemployment, increasing tax revenues to the local budget and the formation of the populations confidence in the future. Despite certain difficulties in economic development, the district didnt loose investors confidence in economic policy being implemented; its investment climate remains favorable for investments. And, the main objective of improving the investment attractiveness of the Municipal Formation Novopokrovskaya district is still the creation of conditions for the formation of an efficient economy capable to provide consistent and improving the populations quality of life, based on the reproduction and modernization of industrial and agricultural potential, development of the social sphere and infrastructure of the Municipal Formation.

For this purpose, the Novopokrovskaya district has all the necessary resources for the successful implementation of investment projects: this is a labor potential of our people, and favorable transport and geographical position in relation to the internal and external markets, and a rich resource base of the Municipal Formation that provide the policy for dynamic development of the production.