DEVELOPMENT OF AGRICULTURE IN RUSSIA AND DIRECTIONS FOR INCREASING ITS COMPETITIVENESS IN THE INTERNATIONAL MARKET

Развитие сельского хозяйства в России и направления повышения его конкурентоспособности на международном рынке
Andrei Vladimirovich Minakov, Ильнур Сафиуллин, Valerikovna Mikhaylova
2023-07-12

Russian agricultureagricultural competitivenessagricultural exportsfood securityinternational sanctions
The agriculture of the Russian Federation is an important part of the national economy, the basis for ensuring the country’s food security. The development of agriculture is influenced by both internal factors (climate, economy, labor resources, state support for the industry, etc.) and external factors (sanctions from unfriendly countries, world market prices, etc.). The importance of increasing the competitiveness of the Russian agricultural industry in the international market has increased with the launch of a special military operation in 2022, as it has faced new challenges. As a result of large-scale political pressure from unfriendly states, the country was cut off from imports of equipment, spare parts, technologies and seeds necessary for the agro-industrial sector, supply chains were disrupted, prices for imported goods increased, and problems arose with exports. Despite these difficulties, Russian agriculture, despite the decline in crop production, due to the growth of indicators in dairy and meat animal husbandry, shows a steady increase in total production. So, in comparison with 2017, the volume of milk production by 2021 increased by 7%, and meat of all types - by 10%. The level of self-sufficiency of the Russian Federation in 2021 exceeded the threshold levels of the Food Security Doctrine for the production of grain, sugar, meat and meat products; below the threshold level was the production of potatoes, milk and dairy products, vegetables and gourds, fruits and berries. Also, a positive moment in the development of the agricultural sector is the increase in the volume of exports of the industry’s products both in kind and in monetary terms, the structure of exports has improved, where there are more and more products of processed agricultural raw materials. However, at present, the sanctions of unfriendly countries have a negative impact on the development of agriculture in the Russian Federation and on its competitiveness in the international market. To solve the problems of the industry, it is necessary to strengthen state support for agricultural producers, aimed at increasing investment and innovation activity in the industry, developing import substitution (creating new industries) and ensuring food security.
1
Agricultural exports increased in physical and monetary terms, with a growing share of processed agricultural products; however, sanctions disrupted imports, supply chains, technologies, and exports, negatively affecting competitiveness.
2
Between 2017 and 2021, milk production increased by 7% and production of all types of meat increased by 10%.
3
Despite a decline in crop production, total agricultural output has steadily increased because of growth in dairy and meat production.
4
In 2021, Russia exceeded Food Security Doctrine self-sufficiency thresholds for grain, sugar, and meat, but remained below thresholds for potatoes, dairy products, vegetables, melons, fruits, and berries.
5
Russian agriculture remains central to national food security, but its development and international competitiveness are shaped by climate, economic conditions, labor, state support, sanctions, and global prices.

Agriculture of the Russian Federation

Development dynamics and international competitiveness under internal and external constraints, including sanctions, food self-sufficiency, production, and exports

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2023-07-12
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Andrei Vladimirovich Minakov
Ильнур Сафиуллин
Valerikovna Mikhaylova
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