Яндекс.Метрика

Issue № 11, November 2019, article № 17

Influence of the imbalance of interests of raw material producers and processors on the development of the russian dairy industry

Over the years, the development of the Russian dairy industry is constrained by the imbalance of interests of raw materials producers and processors. Each of the participants of the dairy market seeks to increase profits, but processors have more opportunities to influence prices. The market of finished dairy products has long been consolidated and the main roles in it belong to large companies that have built plants designed for large volumes of processing of raw materials. For processors, the main goal is to maximize profits, including due to the cheapness of raw materials. As large producers, they are interested in creating industrial-type farms that provide volumes of purchased raw materials. Unlike the market of finished products, the market of raw milk in Russia is not consolidated. Small producers of raw materials are experiencing difficulties with the implementation. The problem of objectively existing contradictions in the interests of producers of raw materials and processors forces the public authorities of a number of market economies to take measures to regulate domestic production and prices, as well as to support exports. However, the main role in resolving the contradictions belongs to dairy cooperatives. They created a vertical pattern of production, including processing. It is large dairy cooperatives that have become the world's leading producers of dairy products. In Russia, an additional powerful factor affecting commodity prices in the production of dairy products is the widespread use of cheapening technologies. The Russian market of dairy products is also negatively affected by the decline in demand, which is associated with the state of the economy as a whole. The determining factor in the growth or decline in demand is the availability of prices for the mass buyer. The drop in household incomes has a particularly negative impact on the demand for deep processing products with high added value. In the conditions of the Russian Federation only the state can establish uniform rules of formation of price balance as the main tool of regulation of interests of all participants of the dairy market.

Issue № 11, November 2019, article № 18

Russia's grain export potential: state, problems and growth risks

In Russian Federation, high gross grain harvests, especially wheat, in recent years exceeding domestic needs by almost 1.5 times and forming the country's main export grain potential, necessitate timely, preventable spoilage, sale of surplus grain to importing countries, of which there are over 130 items, of which 11 countries are purchasing over 1.0 million tons of Russian grain, mainly wheat of the 4th and 5th classes. At the same time, the strategic importance and the need to build up the country's grain export potential is to realize the existing and perspective advantages of the Russian agricultural economy, including the international division of labor, which helps domestic grain enter the world grain market and accelerate economic growth. The relevance of this work lies in a systematic analysis of the current state of grain production and export in Russia over the past three years and export-oriented transport grain infrastructure, identifying its shortcomings and development directions that significantly affect the timely implementation of the country's grain export potential. Positive conditions are formulated for the formation of export grain potential with the participation of the state. The aim of the study is to identify and generalize the existing organizational and economic problems and possible risks that impede the increase in export volumes of grain based on the analysis. Target indicators of grain production and export under various scenarios planned by the Government of Russia in 2024 and practical measures for their implementation are presented. The main results of the study are reasonable prerequisites for the further development of domestic grain production and growth of its export potential due to a number of objective factors cited.