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Agro-industrial Complex The agro-industrial complex (AIC) of Belarus includes: agriculture (plant growing and animal farming), processing industry (food, meal and grain, fodder and primary processing of flax), services (production, technical, land-reclamation, land planning, scientific, agro-chemical, veterinarian, construction, trade and other services). Priorities of the Belarusian AIC development are: animal farming, flax sector, grain, sugar beet and oil and vegetation complexes. Reformation started in the AIC system over the last four years has resulted in a growth of production of certain types of production products. In 1991-2000, 5% of collective farms and 120 processing and service enterprises included into the Republic's property were transformed into market structures; 316 open joint-stock companies were set up. Agriculture constitutes over 10% in the structure of the GDP. The area of agricultural land owned by the State constitutes 7.61 million hectares (81.8% of the total agricultural land of Belarus), agricultural land owned by citizens is 1.47 million hectares. The ratio of the state and private property here is 5.2:1.0. The area of agricultural land is 0.9 hectares per citizen and the area of arable land is 0.6 hectares per citizen. Stemming from the soil and climatic and economic conditions, agriculture specializes in production of animal products (milk and meat) as well as growing of flax and potato. Grain and vegetable crop growing as well as sugar beet, rapes and fodder crops growing are widely developed. In 1996-2000 the Republic produced on the average 642,000 tons of slaughtered weight meat or 63 kg per capita, and more that 5,000,000 tons or 498 kg of milk per capita. In the pre-reconstruction period the milk production per capita was up to 700 kg, meat in slaughtered weight - 111 kg. Development of plant growing is oriented at expanded production of flax, potato, grains, sugar beet, rapes and creation of a reliable fodder base for animal farming. Among the CIS countries, Belarus takes the third place after Russia and Ukraine in production of flax. In favorable years, the output constituted 26% of the total flax fiber output of the FSU and 11% of its world production. Export of flax at present reaches 9-12% of the total production output.

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Natural conditions and traditions of the Belarusian population have conditioned the development of potato growing. Food and technical potato is grown in the country. In 2000 its output constituted around 8 million tons (in 1986 it was 13.4 million tons). The main markets for potato remain to be Moscow, St. Petersburg, regions of the Extreme North and industrial centers of the Russian Federation.

Export of meat products, milk and potato increased in 2000 as compared to 1995. The main markets for sale of agricultural products of the Republic of Belarus are regions of Russia (86% of the total export volume).

The processing industry takes the second place in the AIC structure as regards its product output. It includes large sub-sectors of meat, milk, food, fish, meal and grain and fodder industry and primary flax processing. It includes 5,538 enterprises and production facilities with 143,900 employees.

The leading sectors of the processing industry include meat, milk, meal and grain and fodder industry, which constitute 57% in the structure of commercial food industry, with the ratio of employees in them being 45%.

In 1995-1998, this AIC sphere was more efficient in adapting to market conditions. Improving the structure and the assortment of manufactured products and using initial raw materials of manufacturers of different forms of property, the processing industry increases the production output as regards the majority of produced food products.

Growth of food products output has allowed increasing of its export. In the total export of Belarus food products constituted 6.6% in 1996 and 8,7% in 1998. Products are supplied mostly to the CIS countries (over 80%) and about 17% to other foreign states. Belarus exports milk, meat and confectionery, canned fruits and vegetables, alcoholic and soft drinks, brewery malt, endocrine raw materials, salt, etc.

At the same time, Belarus imports food products from more than 30 countries of the world. Imported products mostly include canned fruits and vegetables from southern regions, sugar, vegetable oil, wine, cognac, fish and fish products, tea, coffee, spices, as well technological equipment for food industry sectors.