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Financial Analytics: Science and Experience
 

Problems and prospects of development in Russia of wholesale distribution centers for sales of agricultural products

Vol. 7, Iss. 34, SEPTEMBER 2014

Available online: 1 September 2014

Subject Heading: THE EFFECTIVENESS OF ECONOMIC POLICIES

JEL Classification: 

Pages: 2-11

Rykova I.N. Research Institute of Finance, Moscow, Russian Federation
rycova@yandex.ru

Smirnov M.A. Research Institute of Finance, Moscow, Russian Federation
smirnov@finistconsult.ru

The article points out that the existing commodity distribution network creates barriers on the way of Russian agriculture development. The heyday of large retail networks, which comes against the backdrop of the continued degradation of municipal and cooperative markets, stimulates the growth of food imports and limits the product potential of the rural areas. There is a huge level of agricultural losses, reducing of the quality of agricultural products and cost development. The establishment of a network of wholesale and distribution centers, following the example of foreign countries could solve this problem, but, first of all, it is necessary to analyze the factors that could determine the form of the project, as well as the specifics of the Russian conditions. In particular, the authors made an analysis of such aspects as the intensity of agricultural production and physical distribution system in Russia, including their comparison with the selected foreign countries. Separately, the authors considered the issue of the basic cooling agent and the need to develop a national technology of food logistics. As a result, the authors conclude that the network of wholesale and distribution centers under formation must be national in scope, to ensure the best interests of the local (Russian) agricultural producers, but at the same time, it must guarantee an optimal rhythm of work of the regional centers. In such a case, the State gets new and more effective ways to support agro-industries, without violating the requirements of the WTO rules. The authors emphasize that the development of the network may be backed not only by the State resources, but also by the resources and competence of private companies, including, if it is necessary and possible, the use of the already prepared infrastructure.

Keywords: agricultural production, logistics, food security, retail network, municipal market, cooling agent

References:

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  2. Order of the Government of the Russian Federation “On Introduction for presentation to the Eurasian Economic Commission of the coordinated proposals in addition to the technical regulations of the Customs Union “On Safety of machines and equipment (TR TS 004/2011)” and “On Safety of machines and equipment (TR TS 010/2011)” with restrictions on the use of ozone-depleting substances” of August 03, 2012 ¹ 1413-r. (In Russ.)
  3. Order of the Agricultural Department of the Tambov region “On Amendments to the departmental targeted program “Regional economically meaningful program of creation of logistics (wholesale and distribution) centers for the storage, pre-sale preparation and realization of potatoes and vegetables in the Tambov region in the period of 2014-2016” of April 07, 2014 ¹ 100. (In Russ.)
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  5. Order of the Ministry of Agriculture of the Volgograd region “On Approval of the departmental targeted program “Development of logistics centers and enterprises for processing of fruits and vegetables on the territory of the Volgograd region in 2013–2015” of April 30, 2013 ¹ 106. (as amended of July 16, 2013) (In Russ.)
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  8. Torgovlya v Rossii, 2013 g.: stat. sbornik [The trade in Russia, 2013: a statistics digest]. Available at: Link. (In Russ.)

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ISSN 2311-8768 (Online)
ISSN 2073-4484 (Print)

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