Most of the grain produced in Russia's Penzenskaya Oblast' is used within the region, with only 0.5-2.4% being exported to other regions. Approximately 50% of grain output in the region is sold directly to processing enterprises, without the involvement of wholesalers or intermediaries. Sugar plants in Penzenskaya Oblast' primarily use imported raw sugar as raw materials, with their use of domestically produced sugar beet being limited and seasonal in nature. The low capacity of milk processing plants in the oblast' means that milk products are produced largely for local and regional markets. In the region's meat processing sector, the main problem is that of meat quality, and for this reason the larger meat processing enterprises are attempting to counter this problem by developing long-term supply contracts with local producers. Poultry meat production is considered to be a particularly attractive area for investment, due to the short technological cycles involved. However the production of poultry meat is strongly dependent on the situation in the grain sector, and there is also stiff competition from imported poultry meats. One of the main goals of Penzenskaya Oblast's strategy for the development of the agro-industrial complex (AIC) in the period to 2010 is to develop the competitive base of the region's AIC, and to ensure growth in production of 5-6%/year. This goal will be supported through the implementation of the Russian Federal programme "Raising the efficiency and resource potential of agriculture", and in particular efforts within this programme to develop animal production and grain production.