Social and economic situation of the Municipal Formation

Following the land zoning of the Krasnodar Region, the Gulkevichi District is a part of the Eastern Economic Zone, which is characterized as a dynamically developing area with high industrial, transport, logistics, and innovation potential.

The area of the Gulkevichi District is 139,447 hectares.

The population of the Municipal Formation Gulkevichi District is 98.9 thousand people.

There are 63 settlements (1 city, 2 urban-type settlements, 1 Cossack village, as well as 59 villages and farms) in the district. It includes 15 settlements: 3 urban and 12 rural ones. The administrative center of the district is the city of Gulkevichi.

The Gulkevichi District has a high potential for the development of the mining industry of widespread mineral deposits, which made dependent on the placement of the largest industrial enterprises in the region for the production of construction materials in the territory of the Municipal Formation.

A favorable climate for growing many agricultural crops, fertile soils (more than 94% of the total area of arable land in the district is located on rich black soil) contribute to the development of the agricultural complex.

Thus, historically, the main sectors of the district’s economy are the industrial sector and agriculture, in which the Gulkevichi District consistently ranks among the top ten Municipal Formations of Kuban.

According to statistics for 2020, for a full range of enterprises and organizations (including small businesses), the volume of shipped goods, works, and services amounted to 42,482.5 million rubles with a growth rate of 113% compared to 2019.

Large and medium-sized enterprises and organizations of the region ensured the volume of shipped products of their own production and works (services) performed in the amount of 26,563.3 million rubles (the growth rate was 133%).

Industry name

Shipped products and works (services) performed in actual prices for large and medium-sized enterprises, million rubles

2020

2019

Growth rate, %

The industrial sector

11,061.9

7,832.1

141.2

Agriculture

7,547.6

4,943.4

152.7

Construction

3,362.5

3,201.1

105.0

Transport and storage

302.0

331.7

91.0

Retail trade

3,993.1

3,270.2

122.1

Public catering

3.7

4.5

82.2

Paid services to the population

292.5

418.5

70.0

TOTAL:

26,563.3

20,001.5

133.0

Following the results of 2020, positive growth rates (in current prices) were noted in 4 out of 7 sectors of the economy. Their share in the volume of shipped products and works (services) performed amounted to 98%.

The economy of the Municipal Formation is diversified. The largest share in the structure of shipped goods, works, and services according to the results of the activities of large and medium-sized organizations for 9 months of 2021 is occupied by the following industries: industrial production (50%), agriculture (24%), retail trade (14%), and construction (11%).

The industrial sector

The industrial sector of the Municipal Formation is represented by 85 economic entities; 17 budget-forming enterprises are classified as large and medium-sized organizations by their main activities, as follows:

  • Mining (Ventsy-Zarya Mining Administration OJSC);
  • Manufacturing activity: manufacture of food products (Girey-Sakhar LLC; Gulkevichskiy Starch Plant LLC; a branch No. 1 of Belyi Medved LLC; Yuzhnoye Meat Processing Plant LLC); production of other non-metallic mineral products (Caucasian Plant of Reinforced Concrete Sleepers – a branch of Beteltrans OJSC; Gulkevichskiy Agricultural Construction Plant OJSC; Silikat JSC; Blok JSC; Zhelezobeton Gireyskoye CJSC; North Caucasian Combine of Industrial Enterprises LLC); production of finished metal products, machinery, and equipment (North Caucasian Plant of Steel Structures OJSC);
  • Electricity, gas, steam, and air conditioning supply (represented by branches of regional organizations, such as Gulkevichskiy Subsidiary of NESK-ELECTRIC NETWORKS JSC; Gulkevichskiye City Electric Networks of NESK JSC of the Krasnodar Region; a site in the Gulkevichi District of Gazprom Mezhregiongaz Krasnodar LLC; a branch Gulkevichskiye Heating Networks of Autonomous Thermal Power Company JSC);
  • Water supply, sewerage, waste management, and pollution eliminating activities (Vodokanal Municipal Enterprise of the Municipal Formation Gulkevichi District).

The structure of the industrial sector:

  • 97% is occupied by manufacturing enterprises (75% of them are engaged in manufacturing food products, and 24% in manufacturing other non-metallic mineral products);
  • 1.3% is occupied by enterprises of electricity, gas, steam, and air conditioning supply;
  • 1.4% is occupied by enterprises of water supply, sewerage, waste management, and pollution eliminating activities;
  • 0.3% is occupied by mining enterprises.

The volume of shipped goods of own production, as well as work and services performed by large and medium-sized industrial enterprises of the district, expressed in monetary terms for 9 months of 2021, amounted to more than 11 billion rubles, with an increase of 29% compared to the corresponding period of the last year. The increase in the indicator was ensured by the growth in the volume of sales of products by manufacturing enterprises by 30.4%, mainly due to an increase in the volume of shipment of food products by 43.3%.

The volume of work and services provided by enterprises in the field of electricity, gas, and steam supply (the Fuel and Energy Sector) amounted to 145.4 million rubles, with an increase of 5.1% compared to the corresponding period of 2020, which is associated with an increase in energy consumption due to abnormally low temperatures in winter.

The volume of work and services provided by enterprises in the field of water supply, sewerage, waste management, and pollution eliminating activities amounted to 155.9 million rubles, which is 8.9% higher than the same period last year, which is associated with the start of receiving industrial effluents from Gulkevichskiy Starch Plant LLC to waste treatment facilities of the Vodokanal Municipal Enterprise, the reconstruction of water supply networks within the state contract for the major renovation of the highway Pushkinskoye village – Verbovyi Farm (Road Maintenance and Construction Department No. 7 JSC with the Ministry of Transport of the Krasnodar Region, where Vodokanal ME acted as a subcontractor), an increase in water consumption due to an increase in production volumes of individual industrial enterprises, connection of new residential and non-residential facilities to networks, as well as an increase in water consumption by the population for watering gardens due to abnormally high temperatures in summer.

In January-September 2021, large and medium-sized industrial enterprises produced the following main types of products:

  • 26.5 thousand tons of meat products;
  • 1.2 thousand tons of cheese and cottage cheese;
  • 1.3 thousand tons of sour cream;
  • 25.8 thousand tons of corn starch;
  • 22 thousand tons of starch molasses;
  • 15.7 thousand tons of maltodextrin;
  • 21.8 thousand tons of sugar from sugar beet;
  • 168 thousand tons of sugar beet pulp, bagasse, and other by-products of sugar production;
  • 30.6 thousand tons of feed prepared for farm animals (except for flour and alfalfa pellets);
  • 54.6 thousand cubic meters of natural sands;
  • 6.9 thousand cubic meters of sand and gravel mixtures;
  • 150.1 thousand square meters of slabs made of cement, concrete, or artificial stone;
  • 41.7 million pieces of conventional brick building bricks;
  • 184.5 thousand cubic meters of blocks and other prefabricated building products made of cement, concrete, or artificial stone;
  • 3.0 thousand cubic meters of ready-mixed concrete;
  • 48.1 thousand tons of road asphalt and concrete mixes;
  • 70.9 thousand square meters of plastic (PVC) window blocks;
  • 40.9 thousand square meters of doors and their wooden frames;
  • 263 tons of construction metal structures made of ferrous metals.

Agriculture

The agricultural sector of the economy is represented by 81 enterprises including 14 budget-forming enterprises, 215 peasant farm enterprises (PFE), and 13,256 personal subsidiary plots (PSP).

According to the results of the work of large and medium-sized enterprises of the agricultural complex of the Municipal Formation Gulkevichi District in January-September 2021, the volume of shipped products amounted to 5.4 billion rubles, which is 6.9% higher than the corresponding period in 2020.

In crop production, in the structure of 100.2 thousand hectares of cultivated lands sown by large and medium-sized enterprises, the share of grain and leguminous crops is 65.2%; that one of sugar beet is 10.2%, of sunflower is 7.4%, of vegetables is 6.9 %, of fodder crops is 4.3%, and of fruit is 0.8%. Compared to last year, the area under cereals and legumes, sugar beet, and fodder crops decreased, and the area under vegetables and orchards increased.

At the end of the reporting period, the livestock industry contains:

  • 10,678 cattle, with an increase of 7.1% (708 cattle) compared to the corresponding period last year;
  • 70,781 pigs that are higher by 8.2% (5,365 pigs) compared to the corresponding period of the last year due to the increase in the number of livestock in Ventsy-Zarya JSC;
  • 555.1 thousand poultry which is 2.2 times (by 302.8 thousand poultry) more than in the corresponding period last year due to the cyclical production at Stavropol Broiler LLC, a poultry farm.

The following amount of products was produced in agriculture:

  • 20.3 thousand tons of livestock and poultry for slaughter (in live weight) which is less than last year by 2% due to a decrease in the average daily weight gain of one animal for fattening and raising cattle by 0.8% and one animal for fattening and raising pigs by 7%, despite the increase in livestock.
  • 16.5 thousand tons of gross milk yield which is less by 2% than in 2020 due to a decrease in the productivity of the milking herd by 8%, which amounted to 4,942 kg per forage-fed cow;
  • 798 thousand eggs with a decrease of 19.8% compared to the corresponding period of the last year due to a decrease in poultry productivity (average egg production of a laying duck) by 32.1% (34.3 eggs), which amounted to 72.7 eggs; the reason is that ducks started laying later this year (in March) due to cold spring;
  • 346.9 thousand tons of cereals and legumes which is less by 1.8% than in the same period last year, due to a decrease in the cultivated lands despite an increase in yield from 1 ha;
  • 204.1 thousand tons of sugar beets which is less than the same period last year by 36.7% due to a decrease in planting area with an increase in yield in the reporting period by 21.5%;
  • 16.4 thousand tons of sunflowers which is 9.9% less than the same period last year due to a reduction in planting area with an increase in yield by 4.6%;
  • 22.4 thousand tons of vegetables which is more by 26.8% than in the same period last year due to an increase in planting area by 19% and good weather conditions, which led to an increase in yield by 11.9%.

Construction

The construction sector of the district’s economy is represented by 47 enterprises, of which 3 belong to the category of large and medium-sized enterprises: Gulkevichskiy Agricultural Construction Plant OJSC (construction of residential and non-residential buildings), Road Maintenance and Construction Department No. 7 JSC (construction of roads and highways), and by actual types of activity, Vodokanal Municipal Enterprise (construction of utility system for water supply and disposal).

The volume of construction work completed for 9 months of 2021 amounted to 2.4 billion rubles (which is 78.1% compared to the corresponding period of the last year), which is explained by a decrease in the volumes of Gulkevichskiy Agricultural Construction Plant OJSC (which share in the total volume of construction work is 77%) for the construction of residential and non-residential facilities in the Krasnodar Region due to the completion of the construction of a school for 1,100 school pupils in the city of Armavir in December last year, a decrease in sites for the construction of facilities this year due to significant growing prices for raw materials for the production of construction materials, as well as a decrease in the volumes of Road Maintenance and Construction Department No. 7 JSC (which share in the total volume is 18.9%).

Housing with an area of 13,462 thousand square meters was put into operation in the Municipal Formation (all by individual developers) which is by 6.1% more than in the corresponding period last year due to the revival of individual housing construction after the pandemic.

The consumer market

As of October 1, 2021, in the territory of the Municipal Formation Gulkevichi District, there are 836 business entities specializing in the field of retail trade including 25 territorial separate subdivisions of large and medium-sized ones, which share is more than 90% in the total turnover (the top network stores are as follows: Magnit [Tander CJSC], Pyatyorochka [Agrotorg LLC], a territorial separate subdivision of Yevroset-Retail LLC, Svyaznoy Logistika JSC, Mobile Telesystems Russian Telephone Company CJSC, Beeline Vympel-Communications JSC, Agrokompleks Firm JSC, TELE2 Russia International Cellular B.V. LLC, Svetofor store [a territorial separate subdivision of Torgservice 23 LLC], Krasnoye i Beloye store [Atlas LLC], Fix price store [a territorial separate subdivision of BEST PRICE LLC], DNS store [a territorial separate subdivision of DNS RETAIL LLC], a territorial separate subdivision of FLASH ENERGY LLC, Krasnodarpechat JSC, a territorial separate subdivision of DiPOS Manufacturing Company LLC, a territorial separate subdivision of Regent Gold LLC, gas stations and gas filling stations [Transport LLC], Rosneft Oil Company PJSC, a territorial separate subdivision of Lukoil-Nefteprodukt LLC, and separate subdivisions of Wildberry LLC).

The retail turnover of large and medium-sized organizations of all types of activity for the reporting period amounted to 3.2 billion rubles which is by 17.3% higher than the same indicator last year due to an increase in retail space, an increase in prices, and the development of online trade.