In 2008-2011 the Vitebsk oblast plans to reorganize around 130 agricultural companies by means of incorporating them into well-performing companies, Leonid Pleshko, the chairman of the agriculture and food committee of the Vitebsk oblast executive committee, said at a session of the committee on August 7. By 2011 the number of independent agricultural companies will be reduced from 313 to 22. Optimization and enlargement of agricultural companies will help increase the area of farm lands per one farm to 5-7 thousand hectares. Today around 80% of agricultural companies have less than 2.5 thousand hectares, said Leonid Pleshko.

Some 46 agricultural companies will be merged with the enterprises from other sectors of economy, 10 with battery farms, 21 bakeries and meat and dairy companies. Another 29 companies will be reformed by means of incorporating with financially sound agricultural companies. The new owners will be given the preferences under Decree No 350 “On attracting investment in the agriculture industry”. The practice of reorganizing agricultural companies was started in 2004 and proved effective. In 2004-2005, some 133 weak companies were handed over to new owners. To date the companies–investors have allocated Br740 billion in agricultural production development. For the six moths 2008 the production of milk was up 17% over the same period last year, the manufacture of goods in comparable prices increased by 13%.  In 2006-2007 the Vitebsk oblast reorganized 30 companies. In H1 2008, the reorganization procedures have been completed for 14 agricultural companies. Another nine are going through this process now.