Strategic Development of Russia’s Food Complex under the Sanctions

ABSTRACT

Under market conditions, the successful operation of agricultural enterprises is not possible without an effective development strategy. Currently, it is impossible to modernize all industries of the food complex. Therefore, it is important to identify specific manageable problems. The two major challenges in this respect are animal breeding and seed production. In both cases, there is a high dependence on imports. This article argues that to promote Russian seedstock and breeding animals it is necessary to restructure the organization of production and to establish closer cooperation between scientific organizations and the Ministry of Agriculture. By scaling up production within a schema of specialized zones, the vertical integration of agricultural production could provide the industry with the necessary resources. The food complex is the core of vertical agro-food systems. In this case, federal and local authorities must fully support the development of integration.

KEYWORDS:

• innovation
• development strategy
• division of labor
• food complex
• livestock
• modernization
• processing
• raw materials
• seedstock
• territorial specialization
• vertical integration

This article is the republished version of:

Strategic Development of Russia’s Food Complex under the Sanctions

Disclosure Statement

No potential conflict of interest was reported by the authors.

Notes

1. I.G. Ushachev, “Nauchnye problemy importozameshcheniia i formirovaniia eksportnogo potentsiala produktsii agropromyshlennogo kompleksa Rossii” [Scientific problems of import substitution and forming the export potential of the production of the agro-industrial complex of Russia], APK: ekonomika, upravlenie, 2016, no. 1, p. 9.

2. G.A. Baklazhenko and L.A. Smirnova, “Formirovanie strategii razvitiia semenovodstva v Rossii” [Forming the development strategy of seed growing in Russia], Ekonomika, trud, upravlenie v sel’skom khoziaistve, 2011, no. 3, p. 5.

3. Ushachev, op. cit., p. 9.

4. V.I. Chernoivanov, A.A. Ezhevsky, N.V. Krasnoshekov, and V.F. Fedorenko, Upravlenie kachestvom v sel’skom khoziaistve [Quality control in agriculture] (Moscow: Rosinformagrotech, 2011), p. 145.

5. A.I. Altukhov, “Osnovy razvitogo zernovogo rynka—territorial’no-otraslevoe razdelenie truda” [The basis of the development of the grain market—territorial-industry division of labor], APK: ekonomika, upravlenie, 2011, no. 11, p. 49.

6. I.N. Buzdalov, “Rossiiskoe selo i krest’ianstvo v tiskakh monopol’nogo okruzheniia” [The Russian village and the rural population in a monopoly environment] (Moscow: All-Russian Selection and Technology Institute of Horticulture and Nursery, 2013), p. 240.

7. I.L. Diachenko, G.A. Briukhanova, and S.A. Pokrovsky, “Potentsial’nye vozmozhnosti neispol’zuemykh zemel’ i kormovykh ugodii v obespechenii prodovol’stvennoi bezopasnosti Rossii” [The potential of unused grazing land for ensuring the food security of Russia], Ekonomika sel’skokhoziaistvennykh i pererabatyvaiushchikh predpriiatii, 2015, no. 6, p. 21.

8. Ibid., p. 22.

9. V.D. Goncharov, “Importozameshchenie v prodovol’stvennom komplekse” [Import substitution in the food complex], Ekonomist, 2015, no. 3, p. 30.

10. V.D. Goncharov and M.V. Selina, “Eksportnyi potentsial APK Rossii” [Export potential of the agro-industrial complex of Russia], Ekonomika i upravlenie: problemy, resheniia, 2016, no. 9, p. 35.

11. V.D. Goncharov and D.A. Tikhonov, Prioritety modernizatsii agropromyshlennogo kompleksa Rossii [Priorities of modernizing the agro-industrial complex Russia] (Moscow: Entsiklopediia rossiiskikh dereven’, 2014), p. 168.

12. V.D. Goncharov, V.V. Rau, and M.V. Selina, “Eksportnye vozmozhnosti prodovol’stvennogo kompleksa Rossii” [Export opportunities of the food complex of Russia], Investitsii v Rossii, 2016, no. 10, p. 18.