INFLUENCE OF THE IMBALANCE OF INTERESTS OF RAW MATERIAL PRODUCERS AND PROCESSORS ON THE DEVELOPMENT OF THE RUSSIAN DAIRY INDUSTRY
Issue № 11, 2019, article № 17, pages 153-158
Section: Economics of agribusiness sectors
Language: Russian
Original language title: ВЛИЯНИЕ ДИСБАЛАНСА ИНТЕРЕСОВ ПРОИЗВОДИТЕЛЕЙ СЫРЬЯ И ПЕРЕРАБОТЧИКОВ НА РАЗВИТИЕ МОЛОЧНОЙ ПРОМЫШЛЕННОСТИ РОССИИ
Keywords: PRODUCTION OF RAW MILK AND DAIRY PRODUCTS, IMBALANCE OF INTERESTS OF MARKET PARTICIPANTS, PLACEMENT OF PRODUCTION OF RAW MILK, CONSUMER MARKETS, SEGMENTS OF THE DAIRY MARKET, REGULATION OF THE DAIRY MARKET, PRICE BALANCE
Abstract: Over the years, the development of the Russian dairy industry is constrained by the imbalance of interests of raw materials producers and processors. Each of the participants of the dairy market seeks to increase profits, but processors have more opportunities to influence prices. The market of finished dairy products has long been consolidated and the main roles in it belong to large companies that have built plants designed for large volumes of processing of raw materials. For processors, the main goal is to maximize profits, including due to the cheapness of raw materials. As large producers, they are interested in creating industrial-type farms that provide volumes of purchased raw materials. Unlike the market of finished products, the market of raw milk in Russia is not consolidated. Small producers of raw materials are experiencing difficulties with the implementation. The problem of objectively existing contradictions in the interests of producers of raw materials and processors forces the public authorities of a number of market economies to take measures to regulate domestic production and prices, as well as to support exports. However, the main role in resolving the contradictions belongs to dairy cooperatives. They created a vertical pattern of production, including processing. It is large dairy cooperatives that have become the world's leading producers of dairy products. In Russia, an additional powerful factor affecting commodity prices in the production of dairy products is the widespread use of cheapening technologies. The Russian market of dairy products is also negatively affected by the decline in demand, which is associated with the state of the economy as a whole. The determining factor in the growth or decline in demand is the availability of prices for the mass buyer. The drop in household incomes has a particularly negative impact on the demand for deep processing products with high added value. In the conditions of the Russian Federation only the state can establish uniform rules of formation of price balance as the main tool of regulation of interests of all participants of the dairy market.
Authors: Frolova Elena IUrevna