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Milk production segment of Russia: The current condition and development prospects

Vol. 9, Iss. 22, JUNE 2016

PDF  Article PDF Version

Received: 20 October 2015

Received in revised form: 1 December 2015

Accepted: 20 January 2016

Available online: 15 June 2016

Subject Heading: Economic policy

JEL Classification: G18, Q1, Q13, Q18

Pages: 43-53

Stolyarova O.A. Penza State Agricultural Academy, Penza, Russian Federation
economy1247@mail.ru

Stolyarova Yu.V. Penza State Agricultural Academy, Penza, Russian Federation
OlgaZa24@yandex.ru

Importance Whereas the country should ensure its food security, dairy production becomes one of the priority objectives.
Objectives The research reveals what causes low efficiency of the milk production segment. It also mentions prospects for its sustainable development in the Russian Federation and the need to strengthen the State aid to dairy cattle breeding.
Methods The research is based on monographic, abstraction and logic methods of analysis.
Results We reviewed the current condition of the milk production segment in the Russian Federation. The State should implement economically viable milk cattle breeding programs at the federal and regional levels so to make milk production more efficient. Milk cattle breeding should bring some investment opportunities. For this, each constituent entity of the Russian Federation should create its milk production segments as a real industry.
Conclusions and Relevance We conclude that it is necessary to import less dairy products linking it with milk production volumes. In our opinion, considering an increase in prices and tariffs, budgetary spending should amount to RUB 100–105 bn. The State supports dairy cattle breeding by subsidizing interest rates on loans obtained. In the current economic circumstances, it becomes a primary goal to improve the financial and lending mechanism.

Keywords: dairy cattle breeding, State aid, principal areas, efficiency, milk processing plants

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