National Interests: Priorities and Security

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Sustainable development of fruit and vegetable production and processing

Vol. 14, Iss. 11, NOVEMBER 2018

Received: 9 July 2018

Received in revised form: 30 July 2018

Accepted: 20 August 2018

Available online: 16 November 2018


JEL Classification: O13, O14, Q01, Q13, R58

Pages: 2036–2050

Magomedov A.M. Dagestan State University (DSU), Makhachkala, Republic of Dagestan, Russian Federation

ORCID id: not available

Subject The article discusses the issues of recovering the infrastructure for processing facilities of the fruit and vegetable sector in the Republic of Dagestan.
Objectives I identify reasons why there are no processing facilities in the region and provide my recommendations for integrating the processing segment into the fruit and vegetable sector of the region.
Methods The research draws upon cross-disciplinary and economic-statistical types of analysis, describes various operational aspects of food canning enterprises. I also identify regional specifics in the development of integration ties between the production and processing of fruits and vegetables and trade the cause-and-effect relations in the analyzable subjects.
Results The Republic of Dagestan specializes in the fruit and vegetable production. However, only eight percent of the crops are industrially processed. Therefore, the republic suffers considerable losses while storing and distributing the products. The article analyzes the current situation in the food canning industry, distinctions and issues of integrating the processing industry into the agricultural sector of Dagestan.
Conclusions and Relevance Production capacities shall be crucially renovated in the processing segment of Dagestan's agricultural sector since 85 percent of fixed assets are obsolete. Enterprises are incapable of conducting a retrofit without loans, though they often become an unbearable burden for them. The stable supply of materials is another crucial issue for the food canning industry. Improvements may be possible if integrated logistic chains are implemented in the fruit and vegetable sector. My recommendations may prove useful in outlining special-purpose regional programs for the agricultural development and processing segment.

Keywords: fruit and vegetable sector, food canning industry, State support


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