Estimation of the Regional Food Market State in the Context of Import Substitution

By Dugina, Evdokiya Lazarevna; Badmaeva, Svetlana Yurievna et al. | Academy of Strategic Management Journal, January 1, 2017 | Go to article overview

Estimation of the Regional Food Market State in the Context of Import Substitution


Dugina, Evdokiya Lazarevna, Badmaeva, Svetlana Yurievna, Alexeev, Sayan Gennadyevich, Korsun, Tatiana Aleksandrovna, Academy of Strategic Management Journal


INTRODUCTION

The modern Russia must entirely use its unique agrarian potential. Herewith, the main task is not only to ensure the population's self-dependence in relation to basic food products but also to recover the lost positions among the leading exporters of food in the world. The share of Russia is 9% of the global tillage, 52% of the chernozemic soil, and 20% of the global fresh water reserves. However, herewith, the Russian ratio in the global food production is inconsiderable. For example, it is only 5% for milk, and 2% for meat [18]. Due to this, in order to reliably provide the population of the country with the national food products and to strategically regulate internal and external threats, stability of the food market, the Doctrine of Food Safety was developed and adopted on February 1, 2010.

Besides, the fall of agricultural production resulted in the decreasing food production of processing enterprises operating in the agrarian sector of economy. Consequently, it had an impact on the consumption of basic food.

REFERENCES REVIEW

Theoretical and methodological aspects of forming and developing the food market were researched in the works of foreign and Russian researchers: Britten S., McIntyre V., Borisenko E.N., Goncharova V.D., Miloserdova V.V., Uchachev I.G. et al.

Regional aspects of forming and developing the food market are described in works of such Russian researchers as Altukhova A.I., Boyeva V.R., Golovatyuk S.M., Dugina E.L., Dorzhieva E.V., Mamediva O.N., Neznamova N.V., Zaynamova N.N. et al.

However, in spite of the fair number of research works, the study of problems and the development of the regional food market in the context of introducing the food import embargo remains urgent, especially when implementing the program on import substitution.

METHOD

The research object is the process of forming and developing the regional food market. In the real practice estimating the state of basic segments of the food region acquires a special attention in the context of food substitution.

The object under observation is the results of researching the state of food provision, in particular, volumes of production, import and consumption of basic food products.

During the research we used legislative acts, statutory documents that regulate the activity of state, production and commercial structures functioning in the agro-food area. To make the analysis, statistical data, materials of research publications, the Internet resources and research and methodic recommendations, developments of research organizations of the Russian Federation and the Republic of Buryatia were used.

The goal and tasks of the research were set by using a number of research methods: system, structural and logical, economic and analytical, monographic ones, etc.

RESULTS AND DISCUSSION

It is necessary to acknowledge that for the years of reforms, the mass import of food products has made Russia a considerably dependent country on import of many types of food.

According to the experience of foreign countries, food import was comprehensively substituted in the 1920s and 1980s in China, Iraq and Livia, in the 1900s in Brazil, Vietnam, Iran, Chile, etc. Herewith the import substitution was successfully built in international allocation, cooperation of labor taking, into account the impact of a number of geo-political factors that limit economic cooperation.

Russia started import substitution in the nineties of the previous century. Thus, in 1998 after the national currency devaluation Russia underwent a considerable process of import substitution. At that time the volume of import decreased approximately by 20% [7]. In 1990 this indicator moved to 28%. The next urge to intensify the import substitution was in the early 2014 when Ukrainian events were escalated, and a number of countries decided to introduce tough economic sanctions against Russia in relation to food products import [15]. …

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