ORGANIZATIONAL AND ECONOMIC SOLUTIONS FOR CATTLE BREEDING TO IMPROVE PROFITABILITY AND EXPANDED REPRODUCTION

Issue № 6, 2017, article № 8, pages 60-64

Section: Agrofood market

Language: Russian

Original language title: ОРГАНИЗАЦИОННО - ЭКОНОМИЧЕСКИЕ РЕШЕНИЯ ПОВЫШЕНИЯ ДОХОДНОСТИ И РАСШИРЕННОГО ВОСПРОИЗВОДСТВА В СКОТОВОДСТВЕ

Keywords: CATTLE BREEDING, MILK AND BEEF MARKET, PROFITABILITY, COMPETITION, PRICE FORMATION

Abstract: Sustainability rate of any livestock industry is the expanded reproduction, which is determined by a number of technological and economic factors. The main limiting factor of development for domestic cattle breeding was the low profitability. According to our estimates, the Government allocated more than 100 billion rubbles for development of dairy cattle breeding within implementation of sectoral programs. The main share of these funds was used to subsidize interest rates on loans. Such state support measures allowed to improve the qualitative performance in the industry by improving species composition and genetic potential. Productivity of dairy herds annually increases and according to preliminary data for 2016, it is amounted to more than 5.5 thousand kg of milk per cash cow for the agricultural enterprises. However, the lack of effective measures aimed at development of industry has led to negative dynamics on main quantitative indicator of the industry. For the expired year production of milk was reduced by 73 thousand tons, and the number of cows has decreased by 158 thousand heads. System solution for complex of industry problems is only possible through increasing profitability and maintaining competitiveness of domestic producers. It’s prematurely to expect dairy cattle breeding could get out of stagnation, while Government maintains the illusion of "all-powerful "invisible" hand of market", which itself will correct the situation on food markets, and that the main recovery tool of our economy is foreign investments.

Authors: CHinarov Vladimir Ivanovich, Strekozov Nikolai Ivanovich, CHinarov Anton Vladimirovich