Regional Variations in the Role of Dairy Farming in Agriculture of Russia’s Non-Black Earth Zone

Abstract

Dairy farming plays a pivotal role in agricultural production as it helps optimize the use of farmland. This study aims to evaluate the impact of dairy farming on the growth of agricultural output and changes in cultivated land areas in Russia’s Non-Black Earth Zone. Methodologically, the research relies on econometric analysis of panel data, Moran’s spatial autocorrelation methods, and statistical grouping techniques. The study employs a dataset from the Russian State Statistics Service, covering agricultural and dairy farming trends in 29 regions of the Non-Black Earth Zone from 1991 to 2021. Using Moran’s spatial autocorrelation, regions were grouped into three categories: “northern,” “central,” and “southern.” The findings reveal significant regional variations in the influence of dairy farming on agricultural output. The contribution of dairy farming to the agricultural gross product varied over time, with notable positive impacts observed in the period after 2012. In the northern and central regions, dairy farming is a major factor, with its importance increasing the further north the region is located. On average, the elasticity of gross agricultural output with respect to dairy production is 0.707 in the northern, 0.583 in the central, and 0.482 in the southern regions. The latter, being more suited to beef cattle farming and crop production, show no statistically significant impact from dairy farming. The number of cows remains a crucial factor for dairy production in the northern and central regions, influencing both the intensity of arable land use and the size of cultivated areas.