ANIMAL BREEDING PRODUCT MARKETS: THE PARTICULARITIES IN OPERATION AND THE INFLUENCE ON THE BRANCH DEVELOPMENT

DOI 10.32651/2070-0288-2018-11-47-51

Issue № 11, 2018, article № 9, pages 47-51

Section: Agrofood market

Language: Russian

Original language title: РЫНКИ ПРОДУКЦИИ СКОТОВОДСТВА: ОСОБЕННОСТИ ФУНКЦИОНИРОВАНИЯ И ВЛИЯНИЕ НА РАЗВИТИЕ ОТРАСЛИ

Keywords: ANIMAL BREEDING, MILK, CATTLE MEAT, MARKET, MARKET CAPACITY, PROSPECTIVE DEMAND, EFFECTIVE DEMAND

Abstract: Each product market has its particularities that affect directly or indirectly the potential of agricultural branches development. The existing approach to definition of the animal breeding product market capacity by means of average consumption per capita (actual or standard) taking into account the population number should be considered incorrect, as it cannot define the product volumes available for the population evading the market distribution mechanisms. Using this approach the concept of ‘market capacity’ is substituted with the concept which is actually ‘prospective demand’ which causes considerable distortion to the information serving as the basis for decision-making for production volumes for the animal breeding production and the product price forecasting. The prospective demand for the animal breeding products defined based on the recommended nutrition standards is considerably higher than the effective demand for those products, and it sufficiently limits the opportunities for milk and beef production volume growth. Governmental support for large-scale producers in animal breeding branch provides competitive advantages for them, but does not allow compensation the reduction of production volumes by small and medium-sized companies and in farm households. The existing business conditions also do not promote equal competition between the domestic animal husbandry products and the imported goods. If the limitations for food import from the EU, the USA, and other countries that imposed the sanctions against the Russian Federation are removed, the structure of Russian dairy and beef market may change dramatically, and the provision of even minimum animal breeding production efficiency level will require sharp increase of the amounts of governmental support for this sector.

Authors: Riabova Evgeniia Petrovna, Ulezko Andrei Valerevich