Livestock breeding in our region: problems and development prospects

Livestock breeding in Russia is one of the most promising branches of production. Thanks to the products manufactured in this area, it is possible to provide the population with food and goods of light and leather products. However, today livestock breeding in our region does not receive adequate financial support, which impedes its development.

The current state of livestock in the Russian Federation

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

Such a rollback of agriculture has become a determinant of the fact that livestock products on the shelves are represented not only in Russia, but also in foreign ones. This has become the reason that finding quality but affordable meat is almost impossible.

Statistics

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

Reasons for the decline of agriculture in the Russian Federation

Beef and dairy farming in the Russian Federation is in a depressed state for a number of reasons, which experts in this field speak quite openly:

1. Firstly, the production of products requires large financial investments, but at the same time, the return on the sale of goods takes several times longer. Unlike other areas, the production cycle in meat or dairy cattle breeding stretches for several years, which does not allow you to make profit at lightning speed.
2. Secondly, agriculture in most regions of the Russian Federation is in decline due to the fact that the modernization of production is impossible due to high prices for new equipment.
3. Thirdly, the ever-increasing role of imported products in the Russian market has caused a decline in product prices. This has made livestock farming in Russia completely useless, as farmers cannot profit from their work.
4. Fourth, agriculture is not an attractive area for foreign investment. Government loans are few in number, which dooms many farms to bankruptcy.

What else affects the prosperity of agriculture?

Of course, agriculture is directly dependent on climatic conditions. The economic efficiency from the production of products will be only if less financial resources were initially invested in development. In other words, regions with a tropical climate are more promising in terms of livestock development than subjects located in temperate or semi-desert zones.

Modern equipment allows you to create comfortable climatic conditions for the development of livestock in our region, however, in any case, this will affect the quality of feed for livestock. Based on the foregoing, we can conclude that optimal climate conditions are becoming an important determinant of resource costs and profits.

The policy of the Government of the Russian Federation to support agriculture

The Ministry of Agriculture of the Russian Federation is taking all kinds of measures that should help reduce meat imports and raise farms.

1. Thanks to close cooperation with the banking sector, enterprises are provided with credit funds that allow them to complete the production cycle. Thus, livestock breeding in our region is supported by the Agricultural Bank, which allocates substantial financial resources to complete the construction of large production facilities.
2. The Russian government provides subsidies, thanks to which it is possible to repay the interest rate of a loan for the construction of new livestock facilities.
3. A separate article is laid down in the federal budget of the Russian Federation to provide material assistance to regions of the state in the field of agriculture. State programs allow raising livestock production in our region to a new level, raising livestock production 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 decrease significantly, which will make it affordable even for small industries. On the other hand, ratification of the WTO agreement implies the entry of imported products into the Russian market at low cost, which increases competition in this area. High resource costs will be a key factor that will cause a further decline in agriculture.

The only way out of this situation is government support for domestic producers. It should reduce the tax rate for local farmers, provide significant financial support in regions with difficult climatic conditions. Only in this case can livestock breeding in Russia be competitive.