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Finance and Credit
 

Improving organizational and economic mechanism of credit cooperation in the dairy sub-complex of agribusiness

Vol. 20, Iss. 48, DECEMBER 2014

Available online: 18 December 2014

Subject Heading: ISSUES ON ECONOMICS

JEL Classification: 

Pages: 46-59

Usova A.A. Ural Social and Economic Institute (branch) of Academy of Labor and Social Relations, Chelyabinsk, Russian Federation
usova74@mail.ru

The article states that at present, the relevance of financial support for development of agricultural enterprises specializing in dairy products has sharply increased. Nowadays, dairy farming experiences considerable difficulties due to the lack of funds. This interferes with proper functioning of the entire dairy products industry of Russia. The author emphasizes that such enterprises get certain help from the State, however, as practice shows, it is obviously not enough to satisfy all their needs. Agricultural credit cooperatives do not cope with financing of agricultural enterprise development either. Therefore, it is necessary to integrate public-private partnership in the sphere of credit cooperation in agribusiness. The author analyzes the condition of modern mechanism of credit cooperation in agrarian and industrial complex, focuses on its shortcomings which are negatively influencing the development of dairy farming of Russia. The conclusion is that the problems impeding effective functioning of the system of farm lending predetermine the need for reorganization of organizational and economic mechanism of credit cooperation in agribusiness with regard to small agricultural producers financing. The author offers a technique enabling to comprehensively estimate the parameters of strategic development of organizational and economic mechanism of dairy farm lending, to determine possible scales of increasing the volumes of such lending. In the long run, it will allow increasing the level of satisfaction of dairy producers' financial needs, which is a necessary condition of transition to qualitatively new level of strategic development of the entire dairy sub-complex of agribusiness. To test the models of assessing parameters of organizational and economic mechanism of credit cooperation in the dairy sub-complex of Russian agrarian and industrial complex, the author made calculations on the case of a project scenario.

Keywords: financial support, organizational, economic, mechanism, lending, cooperation, dairy sub-complex, agrarian and industrial complex, agribusiness

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