Peculiarities of RF Dairy Industry Development Under Food Embargo

Abstract

The article reveals absolute domination of import orientation in development of dairy industry within the framework of the research. This domination will cause industry deindustrialization and retardation of its potential. The article states that imposition of one-year food embargo used as a tool to ensure food security has a negative impact and can be considered as a destructive factor for the dairy industry development in current situation. The article substantiates that import limitation of dairy products against the background of state policy of price liberalization caused significant price decrease on dairy products and lead to decrease of production output within the industry by 50%. The article states that adverse effect of food embargo would be multiplied by system problems of dairy industry and will provoke the threat of crisis as a factor of food security destabilization in RF. A system of optimization measures was proposed within the framework of the research in order to secure stability and to increase efficiency of dairy industry in RF. These optimization measures take the principle of emergence into consideration in order to carry out corporate management policy in the dairy industry and state economic policy in the food industry. Technical base modernization, building financial capacity of the industry and management strategy improvement is regarded as a ground for functional direction of the optimization measures. Introduction and practical realization of the proposed conceptual optimization measures will become the grounds for revolarisation of industry competiveness under market conditions and will formulate prerequisite for quality improvement of dairy products. All these factors will lead to stabilization of agro-industrial complex and provision of food security in the country.

DOI: 10.5901/mjss.2015.v6n5s4p526