Cooperation as the basis for development, strength and new opportunities is not a new idea. Cooperation helps to survive and to win. But how is this idea understood and put into practice by one of Siberian regions which has chosen the path of cluster development in order to help some priority economic sectors move to a new level? In an exclusive interview with ‘Nivy Rossii’ magazine Viktor Nazarov, Governor of Omsk region, talks about the development of the Agrobiotechnological Industrial Cluster of Omsk Region.
-Mr. Nazarov, when and under whose initiative was Agrobiotechnological Industrial Cluster of Omsk Region created?
- It was created at my initiative last fall and in late October Denis Manturov, Minister of Trade and Industry of the Russian Federation, signed an order for its inclusion into the Registry of Industrial Clusters of Russia. But even before the creation of the cluster, its today’s members have worked together, carried out various research activities, and sought together how to bring their products and services to new markets.
- What are the goals and objectives of Agrobiotechnological Industrial Cluster of Omsk Region? Encourage enterprises to undertake joint actions while working on the projects which are crucial both for ensuring food security and import substitution and for the country’s export potential increasing.
- How many enterprises does the cluster consist of? What additional opportunities does participation in the cluster give them?
There are 19 organizations in the cluster now: 11 enterprises and 8 technological, financial and educational institutions, including Omsk State Agrarian University, Agrochemical Service Center Omsky Federal State Budgetary Institution, Omsk Scientific Center of SB RAS, Omsk Reference Center of Rosselkhoznadzor, Rosselkhozbank (Russian Agricultural Bank) and others. One of the key enterprises of Biocluster is Titan-Agro LLC. It comprises 3 factories: a mixed fodder plant, a pig-breeding complex and a meat-packing plant which are interrelated and form one of the cluster’s segments. Titan-Agro provides raw materials to other cluster members that supply food products both for Omsk and other regions’ markets. There are also enterprises of other specialization within the cluster. For example, Sladonezh Confectionery Plant, which represents its products in more than 50 regions of the Russia. Raw materials for Sladonezh are supplied by MelKom-Omsk, another member of the cluster, an enterprise engaged in production of wheat flour and grain conversion products. Another key participant is Saturn-Agro Research and Production Enterprise which is engaged in development and manufacture of a full range of grain equipment, involved in primary and secondary grain cleaning. Omsky Biocluster is, above all, a platform for effective cooperation of enterprises of the sector. It opens new opportunities for its members to develop and produce high-added value modern products, to get support and to commercialize start-ups. There are several investment projects claiming for federal support in the cluster’s portfolio today.
- How does state and regional government support the cluster and its participants?
At the moment we are developing support measures for investment projects carried out within the cluster. It is very important since such cooperation provides a serious synergistic effect. When one or two enterprises get support, it results in production rates growth in the entire sector. It is difficult to develop clusters without financial aid from the state. In April we held a business forum where we discussed this problem with All-Russian Public Organization ‘Delovaya Rossiya’ (Business Russia). All the participants agreed that the existing sporadic support measures should be replaced by systematic approach and this responsibility should be shared between federal and regional authorities.
- What are the actual results of the business forum recently held in your region?
In its resolution we set out the need to resume measures of direct financial support for small and medium-sized enterprises. It involves partial reimbursement of expenses on leasing equipment, credit interest rate subsidies, as well as subsidies for equipment acquisition. Another important point is branch specialization of financial support measures for small and medium-sized businesses within industrial clusters. All the proposals made at the business forum were referred to federal authorities.
- Why did you have to choose cluster development policy? What advantages does it provide?
I am convinced that cluster policy has a great future. It gives the opportunity to develop small and medium-sized businesses in cooperation with large enterprises. Our region has high industrial and scientific potential. Sectoral characteristics of Omsk economy have become the basis for creation of the first clusters in the field of agrobiotechnology and oil refining. There are other promising areas currently being worked on. The main distinguishing feature of clusters is their focus on innovation. Another one is their geographic location. Due to tough competition for investments between countries and regions, it became clear that unique competitive advantages emerge not on the national level, but on the level of specific businesses on specific territories. The essence of clustering is in its multiplicative effect, since all members of the cluster collaborate with each other. So they are interested in developing long-term strategic programs for each organization, that can be achieved only through partnership, long-term contracts, stability in raw materials and finished products supply and quality services rendering in due time.
- Is Agrobiotechnological cluster of Omsk region unique? Do other regions follow your lead?
This is the first agricultural cluster in Siberia. Its unique character based on the fact that by the time of its official creation it has already existed as a complex of cooperative relationships of several enterprises and institutions. There is a similar food cluster only in the Republic of Tatarstan, I suppose.
- Mr. Nazarov, now do you estimate the cluster’s role in regional economy?
Omsky Biocluster has already provided more than two thousand jobs with a decent salary, almost nine thousand students study at cluster’s educational institutions, it has about 100 contractors in Russia and all over the world. We consider the cluster approach to the development of the regional agricultural sector as one of the key investment initiatives for diversifying the rural economy and sustainable development mechanism for rural areas. The association of enterprises of allied industries opens up prospects for high-level raw materials processing and high added value production volume growth. Our farmers face serious problems in connection with sale of their products and we expect Omsky Biocluster to solve it. We hope that at the same time it will create conditions for unused arable land cultivation, yields growth and crop losses decrease.
- Thank you for the interview.
