Regional Economics: Theory and Practice

Dairy cattle breeding in Russia: Issues and solutions

Vol. 16, Iss. 7, JULY 2018

Received: 16 April 2018

Received in revised form: 26 May 2018

Accepted: 13 June 2018

Available online: 17 July 2018


JEL Classification: Q12, Q13, Q14, Q18

Pages: 1303–1319

Shakhnazaryan G.E. Financial Research Institute of Ministry of Finance of Russian Federation, Moscow, Russian Federation

Importance Some achievements in certain areas of agricultural development especially stand out against dairy cattle breeding, which still undergoes difficulties. Due to insufficiently effective measures of the State aid to dairy cattle breeding, it is necessary to search for an optimal solution in this aspect.
Objectives The research analyzes the current situation in dairy cattle breeding, existing trends in the segment, structure and percentage of various goods producers in the total agricultural output. I evaluate some areas of the State aid, focusing on the insufficient support to smaller businesses in rural areas, though they are active in milk and dairy production. The article provides the rationale for the reasonableness of commodity and procurement interventions under the current circumstances and sets out my proposals for fostering the segment performance.
Methods The research involves a systems approach, observation of economic processes, collection of facts, synthesis, statistical, historical, logic and graphic analysis.
Results I determined the real situation in dairy cattle breeding and propose an approach to evaluating the efficiency of the State aid.
Conclusions It is unreasonable to carry out commodity and procurement interventions with respect to dairy production at the current development phase. It is necessary to expand the competence of regional authorities so that they could choose the vector, tools and scope of the State aid to agriculture. However, their responsibility for special-purpose and efficiency of measures should be augmented. Credit cooperation seems to be the most effective form of support to SME.

Keywords: agrarian policy, governmental program, dairy cattle breeding, efficiency, cooperation


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