PRODUCT SEGMENTS OF THE AGRI-FOOD MARKET: UNIFIED APPROACH OR TARGETED STATE REGULATION
DOI:
https://doi.org/10.17059/ekon.reg.2023-2-16Keywords:
agri-food markets, sugar market, import substitution, food security, state regulation, protectionism, state support, subsidies, simulation model, nominal protection coefficientAbstract
The state policy of protectionism in the agri-food sector yielded ambiguous results, such as success in agriculture and achievement of food security thresholds on the one hand, and a sharp increase in food prices on the other. Sugar market has satisfied domestic demand and therefore needs either export expansion or production restriction. The article analyses the development dynamics of the sugar beet industry and sugar consumer market in 2000-2021. The study aims to assess the effectiveness of existing state support measures in the sugar market, considering changes in import substitution. It is hypothesised that in case of saturation of the market with domestic products, the state should support consumers rather than producers. Statistical data analysis and simulation modelling were used as the main research methods. Nominal Protection Coefficient (NPC) was chosen to indicate changes in state support. Domestic market volume under constant demand was assessed. Given that the average per capita sugar consumption remains at 39 kg/person, domestic consumption is 5.8 million tonnes. Considering current production volumes (7.6 million tonnes), the equilibrium price of sugar is estimated at 37 roubles/kg. Calculated NPC values show the dominance of market price transfers for sugar producers. Thus, it is necessary to switch to unrelated support measures for strengthening the effect of market mechanisms. The results can be adapted to develop specific agricultural policy instruments. Future research may conduct deeper structural analysis of selected segments of food markets in order to identify regional and corporate characteristics of participant interaction and adjustment of state regulation measures.
References
Belova, T. N. & Kupriyanova, M. V. (2019). The Process of Import Substitution in the Food Market as the Object of Modeling. Sovremennaya konkurentsiya [Journal of Modern Competition], 13(2), 50-61. DOI: https://doi.org/10.24411/1993-7598-2019-10204 (In Russ.)
Belova, T. N. (2021). “Sweet” and “Bitter” Arguments for the Right Protectionism. EKO [ECO], 51(12), 78-96. DOI: https://doi.org/10.30680/ECO0131-7652-2021-12-78-96 (In Russ.)
Belova, T. N., Kupriyanov, V. V. & Kupriyanova, M. V. (2020). Dynamics of Price Indicators of the Russian Food Market: Experience of Computer Modeling. Ekonomika i matematicheskie metody [Economics and Mathematical Methods], 56(2), 40-51. DOI: https://doi.org/10.31857/S042473880006892-0 (In Russ.)
Buzdalov, I. N. (2016). Scientific Foundations and Modern Strategy of Agrarian Policy in Russia. APK: ekonomika, upravlenie [AIC: Economics, Management], 3, 8-21. (In Russ.)
Clapp, J. & Fuchs, D. (Eds.). (2009). Corporate Power in Global Agrifood Governance. The MIT Press Cambridge, Massachusetts: London, England, 308.
Clark, J. K., Sharp, J. & Dugan, K. L. (2015). The Agrifood System Policy Agenda and Research Domain. Journal of Rural Studies, 42, 112-122. DOI: https://doi.org/10.1016/j.jrurstud. 2015.10.004
Daly, S. (2015). Producing healthy outcomes in a rural productive space. Journal of Rural Studies, 40, 21-29. DOI: https://doi.org/10.1016/j.jrurstud.2015.05.007
Diamond, A. & Barham, J. (2011). Money and Mission: Moving Food with Value and Values. Journal of Agriculture Food Systems and Community Development, 1(4), 101-117. DOI: https://doi.org/10.5304/jafscd.2011.014.013
Epshtein, D. B. (2019). Why is agricultural production growing faster than industry and the economy as a whole? APK: ekonomika, upravlenie [AIC: Economics, Management], 8, 4-15. DOI: https://doi.org/10.33305/198-4 (In Russ.)
Graddy-Lovelace, G. & Diamond, A. (2017). From supply management to agricultural subsidies — and back again? The U.S. Farm Bill & Agrarian (in)viability. Journal of Rural Studies, 50, 70-83. DOI: https://doi.org/10.1016/j.jrurstud.2016.12.007
Heilbroner, R. L. & Thurow, L. C. (1994). Economics Explained [Ekonomika dlya vsekh]. Novosibirsk: EKOR, 315. (In Russ.)
Krylatyh, E. N. & Belova, T. N. (2018). Russian Grain Exports in the Context of Regional Economic Policy. Ekonomika regiona [Economy of Region], 14(3), 778-790. DOI: https://doi.org/10.17059/2018-3-7 (In Russ.)
Lambert, R. A. (2012). Primer on the Economics of Supply Management and Food Supply Chains. Working Papers 125246, Structure and Performance of Agriculture and Agri-products Industry (SPAA). DOI: https://doi.org/10.22004/ag.econ.125246
Mundler, P., Gouin, D.-M., Laughrea, S. & Ubertino, S. (2020). Is Canada’s Supply Management System Able to Accommodate the Growth of Farm-direct Marketing? A Policy Analysis. Journal of Agriculture, Food Systems, and Community Development, 9(3), 261-279. DOI: https://doi.org/10.5304/jafscd.2020.093.023
Neganova, V. P. & Chistyakov, Yu. F. (2020). Development of Agricultural Foreign Trade in the Post-Soviet Countries. Ekonomika regiona [Economy of Region], 16(2), 597-611. DOI: https://doi.org/10.17059/2020-2-20 (In Russ.)
Orden, D. & Zulauf, C. (2015). Political Economy of the 2014 Farm Bill. American Journal of Agricultural Economics, 97(5), 1298-1311. DOI: https://doi.org/10.1093/ajae/aav028
Ovchinnikov, O. G. (2021). Regulation of the Sugar Market in Russia: The Reasons of the Events, the Consequences of the Measures Taken and Possible Alternatives. Sakharnaya svekla [Sugar Beet], 6, 2-11. DOI: https://doi.org/10.25802/SB.2021.81.30.001 (In Russ.)
Pakhomov, M. A., Menshchikova, V. I. & Abdukarimov, F. V. (2015). The Sugar Market in Russia: The Condition, the Place in the World Market, Prospects of the Further Developments and Economic Efficiency. Sotsialno-ekonomicheskie yavleniya i protsessy [Social-Economic Phenomena and Processes], 10, 124-130. (In Russ.)
Poshkus, B. I. (2010). Three Problems of Agriculture in Russia. Ekonomika selskogo khozyaystva Rossii [Economics of Agriculture of Russia], 5, 20-27. (In Russ.)
Reisman, E. (2022). Protecting provenance, abandoning agriculture? Heritage products, industrial ideals and the uprooting of a Spanish turrón. Journal of Rural Studies, 89, 45-53. DOI: https://doi.org/10.1016/j.jrurstud.2021.11.003
Ricardo, D. (1817). On the Principles of Political Economy and Taxation [Nachala politicheskoy ekonomii i nalogovogo oblozheniya]. Trans. London: John Murray, 589. (In Russ.)
Semenova, N. N. (2015). Evaluation of the State Support Efficiency for the Agrarian Sector of Economy. Finansovaya analitika: problemy i resheniya [Financial Analytics: Science and Experience], 9, 2-13. (In Russ.)
Shik, O. V., Serova, E. V. & Yanbykh, R. G. (2020). Review of the Budget Support System for the Agricultural Sector in Russia. Voprosy gosudarstvennogo i munitsipalnogo upravleniya [Public Administration Issues], 2, 145-167. (In Russ.)
Sumner, W. & Novikov, Y. (2002). Zabluzhdeniya protektsionizma [Misconceptions of Protectionism]. Moscow, Chelyabinsk: Socium, Ekonomika, 254. (In Russ.)
Ushachev, I. G. & Chekalin, V. S. (2020). New Doctrine of Food Security and Measures to Implement Its Basic Provisions. APK: ekonomika, upravlenie [AIC: Economics, Management], 4, 4-12. https://doi.org/10.33305/204-4 (In Russ.)
Uzun, V. (2012). Features of state support of agriculture in Russia. Ekonomika selskogo khozyaystva Rossii [Economics of Agriculture of Russia], 7, 57-64. (In Russ.)
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Матушкина Наталья
This work is licensed under a Creative Commons Attribution 4.0 International License.
