Livestock in our region: problems and development prospects

Livestock in Russia is one of the most promising industries. Thanks to products that are produced in this sphere, it is possible to provide the population with food and goods of light and tanning products. However, to date, livestock farming in our region does not receive proper financial support, which hampers its development.

Current state of animal husbandry in the Russian Federation

The Government of the Russian Federation takes all possible measures to support agriculture, in particular, animal husbandry in our region. However, the statistics of the livestock speaks only of a gradual decline. The development of animal husbandry is in the stage of stagnation. If in the early 90-ies of XX century indicators of the number of cattle reached the key mark of 57 million, then by 2009 there was a two-fold decline.

Such a rollback of agriculture has become a determinant of the fact that on the shelves livestock products are represented not only by Russian production, but also by foreign ones. This is the reason why it is almost impossible to find high-quality, yet affordable meat.

Statistics

The dynamics of the economic profitability of livestock in Russia can be traced through statistical data provided by the Ministry of Agriculture of the Russian Federation.

The causes of the decline in agriculture in Russia

Meat and dairy cattle breeding in the Russian Federation is in a depressed state for a number of reasons, which experts in this field say quite openly:

1. First, the production of products requires large financial investments, but at the same time the payback from the sale of goods takes several times longer. Unlike other spheres, the production cycle in meat or dairy cattle breeding is stretched for several years, which does not allow making profits at lightning speed.
2. Secondly, agriculture in most regions of the Russian Federation is in a state of decline due to the fact that modernization of production is impossible due to high prices for new equipment.
3. Thirdly, the constantly increasing role of imported products in the Russian market caused a decline in prices for products. This made livestock breeding in Russia completely useless, as farmers can not profit from their work.
4. Fourth, agriculture is not an attractive area for foreign investment. State loans are small, which dooms many farms to bankruptcy.

What else affects the prosperity of agriculture?

Undoubtedly, it is agriculture that directly depends on climatic conditions. Economic efficiency from production will only be if initially lower financial resources were invested in development. In other words, regions with a tropical climate are more promising from the point of view of livestock development than subjects located in temperate or semi-desert zones.

Modern equipment makes it possible to create comfortable climatic conditions for the development of livestock in our region, but this will in any case affect the quality of feed for livestock. Proceeding from the above, one can come to the conclusion that optimal climate conditions become an important determinant of resource cost and profit.

The policy of the Government of the Russian Federation on supporting agriculture

The Ministry of Agriculture of the Russian Federation takes all sorts of measures that should help reduce meat imports and raise farming.

1. Thanks to close cooperation with the banking sector, enterprises are provided with credit facilities that allow to complete the production cycle. Thus, livestock farming in our region is supported by Rosselkhozbank, which allocates substantial financial resources for the completion of construction of large production facilities.
2. The government of the Russian Federation provides subsidies, thanks to which it is possible to repay the loan interest rate for the construction of new livestock facilities.
3. In the federal budget of the Russian Federation a separate article is laid for rendering material assistance to the regions of the state in the sphere of agriculture. State programs allow livestock breeding in our region to a new level, to raise the production of livestock for slaughter and milk production.

Prospects for the development of agriculture in Russia

Russia's accession to the WTO played a dual role for the development of domestic agriculture. On the one hand, the cost of agricultural machinery will significantly decrease, which will make it affordable even for small-scale production. On the other hand, the ratification of the WTO treaty implies the import of imported products to the Russian market at low cost, which increases competition in this area. High resource cost will be a key factor that will cause further decline in agriculture.

The only way out of this situation is the state support of domestic producers. It is necessary to reduce the tax rate for local farmers, provide significant financial support in regions with severe climatic conditions. Only in this case animal husbandry in Russia can be competitive.