OREANDA-NEWS. June 07, 2010. In order to settle the issues of agro-industrial sector, which affects social and economic development, industry must be reoriented and a number of reforms must be introduced. Minister of Agrarian Policy Mykola Prysyazhnyuk said this at the meeting on agro-industrial issues.

"We must find the same effect model of vertically integrated structures, and small-scale production", he said, noting that small-scale producers to be supported at the appropriate level. In this regard, according to the Minister, China must be a prime example where the rapid growth of small-scale manufacturing over 20 years has promoted the reduction of rural poverty from 55% to 8% in 2003.

To do this, according to Mykola Prysyazhnyuk, you must create the conditions "under which the economic effect of the scale of production would not be taken out from town, but directed to the local development. To launch mechanisms of the development based on rural community. To encourage private farms to acquire the status of the business that will enable to produce commodity, qualitative and standard agricultural products".

In addition, he said, it is necessary to support association of owners of land in non-legal forms: "This will increase the marketability of production and investments in production".

Mykola Prysyazhnyuk also stressed that it is necessary to create as soon as possible along with the state agricultural wholesale markets, civilized system of cooperation, modern information and logistics network. But he noted that the Government in the state budget for 2010 provided funds for developing of wholesale markets.

According to the Minister, to improve the situation in the agro-industrial complex we have to solve problematic land issues. In particular, to introduce a system of food aid to vulnerable part of the population in the field of land relations: "It is necessary to adopt legislation necessary to prepare for entering the land market outlined by the Cabinet, to limit the size of acquiring agricultural land ownership and identify the basic principles of pricing". Moreover, says Mykola Prysyazhnyuk we need to legalize state institutions to regulate the land market, to develop mechanisms for long-term concessional lending for villagers in order to purchase a land with the state support, to start conservation of inefficient degraded agricultural land. "In addition, in order to withdraw agricultural production to a new level we have to reform key and strategic branches through phased technological and technical re-equipment", emphasized Mykola Prysyazhnyuk.