The individual producers in Dagestan report that the rising costs and tighter credit conditions caused the reduction of investment in agriculture, the Southern Department of the Bank of Russia reports.

For example, high tariffs for energy resources and competition with foreign suppliers of vegetables restrain the development of large agricultural producers in the region. The potential of greenhouse production is not fully utilized. The enterprises are forced to transfer the increased costs for purchased equipment and seeds into prices.

"At the same time, the preferential financing helped Dagestani farmers to plant orchards and continue industrial planting of almonds and kiwis. In 2024, one of the companies plans to complete the construction of a fruit storage facility with a capacity of 11,500 tons. Nevertheless, the enterprises expect expansion of investment activity in 2024" the report says.