Ensuring Sustainable Development of the Agro-industrial Complex of

the Republic of Bashkortostan

Lilia R. Kurmanova

, Artur R. Galimardanov

and Diana A. Kurmanova

Department of Finance and Taxation, Bashkir State University, Ufa, Russia

Institute of International Economic Relations, Moscow, Russia

Keywords: Аgro Industrial Complex, Food Security, Gross Agricultural Output, Animal Husbandry, Crop Production.

Abstract: The article examines the economic aspects of the state of the agro-industrial complex on the example of the

Bashkortostan Republic. There is a tendency of reducing domestic production in a number of socially

significant agricultural products of animal husbandry and crop production. Experts note Russia's high

dependence on food imports. The growth rate of imported food products is significantly ahead of the growth

rate of domestic production. Import substitution is a vital factor in restoring the country's food independence

and ensuring Russia's economic security. Currently, the level of food security in Russia is critical. Processing

enterprises of the food industry are not provided with high-quality raw materials of domestic production. In

Russia, an extremely important task is to increase the level of food security through the production of domestic

safe food products based on animal husbandry, poultry and crop production. Ensuring the food security of the

country is aimed at satisfying the population of the country with food in an amount sufficient to maintain the

normal process of life. The study is an analysis of the existing problems associated with ensuring food security

and sustainable development of enterprises in the agro industrial complex of the region. The Republic of

Bashkortostan, having a favorable geographical location, attractive conditions for agricultural production, is

significantly inferior in terms of the efficiency of the organization and production of agricultural products.

1 INTRODUCTION

The dynamic development of the national economy

cannot be imagined without the intensive

development of agriculture and the entireagro

industrial complex (AIC), which is the basis for the

implementation of the country's Food Security

Strategy.

Increase in level of food supply is relevant and

important for each region of the country and is

inseparably linked with the general development of

agriculture and agro-industrial complex (agrarian and

industrial complex) of each territorial subject of the

Russian Federation. Continuous monitoring allows us

to identify risks in the development of agriculture and

the regulation of markets for agricultural products,

raw materials and food in the republic. All this made

it necessary to study these issues and was reflected in

the chosen topic.

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The mechanism for ensuring food security is

aimed at satisfying the population of the country with

food in an amount that is sufficient to maintain a

normal life process. An important indicator of

ensuring food security is the share of domestic food

in the total consumption in the country. Food security

in Russia is considered to be achieved if the annual

own production of vital food products provides at

least 80% of the annual needs of the population. In

Russia, dependence on food imports remains high

(Bayguzina et al., 2019). The dynamics of food

imports still significantly exceeds the dynamics of

growth in domestic food production.

The problem of food safety for consumers has also

become especially acute recently, which is caused by

an increasing the supply of substandard, falsified and

hazardous products to the food market. The

likelihood of an embargo on imports of food and raw

materials for its production due to economic, political

Kurmanova, L., Galimardanov, A. and Kurmanova, D.

Ensuring Sustainable Development of the Agro-industrial Complex of the Republic of Bashkortostan.

DOI: 10.5220/0010592004390445

In Proceedings of the International Scientiﬁc and Practical Conference on Sustainable Development of Regional Infrastructure (ISSDRI 2021), pages 439-445

ISBN: 978-989-758-519-7

439

and other circumstances should also be taken into

account. Therefore, import substitution is a vital

factor of restoring the country's food independence,

one of the most important strategies for economic

development and economic security of Russia. Import

substitution in Russia is an important tool of state

regulation aimed at ensuring the protection of the

interests of domestic agricultural producers of goods

and the formation of an effective agricultural market.

Import substitution lags behind in a number of goods,

including dairy products.

The production of domestic food products cannot

be considered independent if it is based on the using

of imported agricultural raw materials, imported feed

and imported ingredients for the manufacture of

compound feed. According to this factor, the level of

food security in Russia should be as regarded as

critical because it is lower than 60%.

Experts note that food security in Russia is not

ensured for beef meat, as well as for dairy products.

Consumption of essential foodstuffs by the Russia

population does not meet rational standards for

vegetables and melons, fruits and berries, milk and

dairy products.

The basis of the country's food security is the

stable functioning of agricultural enterprises and their

economic security. The issues of ensuring the

economic security of the agro industrial complex as

an obligatory element of the food security and

national security of the country are relevant and

timely.

2 RESEARCH METHODOIOGY

Consideration of the current state of agriculture was

carried out on the methodology based on the

statistical research in agriculture, using indicators,

which reflect the agricultural products production,

resource provision for the production and sale of

agricultural products, crop yields, etc. Statistical

methods in agriculture take into account the

peculiarities of the social-economic and

technological nature of the reproductive processes

taking place in it. The use of the statistical apparatus

in analytical research in agriculture made it possible

to identify the processes that are actually occurring in

this sector of the economy, and development trends.

3 RESEARCH RESULTS

The constituent entities of the Russian Federation and

municipalities solve the problem of food security in

the format of using the resources of the economic

space of their own territory.

The agro-industrial complex has a particular

importance in the economy of the Bashkortostan

Republicand isthe one of the main economic

complexes that determine the reproductive processes

and conditions for maintaining the life of the region.

The level of production of the main types of

agricultural products in the Bashkortostan Republic

tends to increase, which is reflected in Table 1.

Table 1: Dynamics of the main indicators of the agro-

industrial complex of the Bashkortostan Republic.

Indicators 2017 2018 2019 2020

2020

2019,

Gross

agricultural

output,

billion

rubles

157 155 161 177 109.9

Agricultural

production

index, %

103.8 98.2 101.6 103.6 102.0

The volume of gross agricultural output of the

republic, despite the pandemic and economic

difficulties, in 2020 increased by 9.9%. At present,

the republic's agriculture forms more than 7% of the

gross regional product (Official website of the

Government of the Bashkortostan Republic, 2020).

The problem of food shortages for a growing

population can be solved by increasing agricultural

production in the regions.

According to the results of 2020, the volume of

gross agricultural products in the region exceeded 177

billion rubles. The trend of the agricultural production

index is steadily rising (Figure 1).

ISSDRI 2021 - International Scientiﬁc and Practical Conference on Sustainable Development of Regional Infrastructure

440

Figure 1: Dynamics of indicators of agro-industrial complex of the Republic of Bashkortostan.

The Republic of Bashkortostan is the largest

manufacturer of livestock products. In 2020, the

breeding base of animal husbandry of the republic

was represented by a regional information and

breeding center, a milk quality control laboratory,

cattle breeding farms of five breeds: black-moth,

black-moth Holstein, Simmental, Bestuzhev, and

Ayrshire. Table 2 presents data of the number of farm

animals in farms of various forms of ownership,

which indicate the dynamics of the growth of cattle

by 3% in comparison with 2019. A decrease in the

number of livestock in pigs is observedby 6.8%,

horses – by 6.9%, what is associated with the shortage

of working capital of agricultural producers, who are

forced to sell their livestock in order to pay urgent

debts on loans, wages, taxes, as well as to prepare for

spring field work.

Table 2: Livestock of farm animals in the Bashkortostan

Republic, thousand heads (Official website of the Ministry

of Agriculture of the Bashkortostan Republic).

Indicators 2017 2018 2019 2020

Cattle 1028.8 975.2 940.3 968.5

including

cows

397.0 394.4 396.1 395.5

Pigs 468.1 429.3 504.3 470.2

Sheep

and

oats

820.9 762.0 674.8 705.1

Poultr

10197.9 10166.6 10677.3 12794.7

Horses 112.0 112.3 119.5 111.2

Bee

colonies,

thousand

ieces

335.9 325.5 299.8 378.5

Analysis of the production of basic livestock

products in the region shows the dynamics of growth

in meat, including beef, pork, lamb and poultry (Table

3). However, for such important items of food

products as milk and eggs, in 2020 there was a

significant reduction in production, respectively, by

12.8% and 15.8%. The production of honey, as a

historically national product in the republic, also

decreased by 8.5%. Since 2017, the production of

wool in the republic has been reduced. If 2085 tons of

wool were produced in 2017, then in 2020 – 1869 tons

or less by 10%.

Table 3: Production of basic livestock products in the

Republic of Bashkortostan (thousand tons).

2017 2018 2019 2020

Livestock and

poultry for

slaughter (in

live weight)

409.1 400.1 403.2 662.8

cattle 189.6 186.3 192.1 193.6

s 96.1 96.0 92.0 95.7

sheep and

oats

25.9 25.5 22.9 23.0

oultr

86.8 81.5 86.8 87.2

Mil

1609.6 1623.9 1641.1 1431.8

Eggs, million

ieces

1063.8 1038.6 1040.3 876.0

Hone

, tons 5390 5461 5500 5030

Wool

(physical

wei

)

, tons

2085 2087 1849 1869

One of the reasons for the reduction in the

production of milk and eggs in the republic, which are

100

120

140

160

180

2013 2014 2015 2016 2017 2018 2019 2020

126

137

160

169

157

155

161

177

116,6

100,9

103,1

100,9

103,8

98,2

101,6

103,6

Volume of gross output, billion rubles Agricultural production index, %

Ensuring Sustainable Development of the Agro-industrial Complex of the Republic of Bashkortostan

441

socially significant food products of the population,

is a decrease in the productivity of livestock and

poultry because of violations of technological,

agricultural and breeding measures. In particular,

according to Table 4, it can be seen that in 2020 the

average annual milk yield per cow decreased by

15.9%, the average annual egg production of chickens

fell by 2.1%.

Table 4: Productivity of livestock and poultry in

agricultural organizations.

2017 2018 2019 2020

Average annual

milk yield per

cow, kg

4963 5262 5469 4600

Average annual

egg production of

laying hens, pcs

295 296 296 290

Average annual

shearing of wool

per sheep (in

physical weight),

2.2 2.0 2.4 2.2

There are six agro-climatic zones in

Bashkortostan, from hot and arid (Trans Ural) to cold

and humid (mountain-forest zone) conditions taking

into account for the agricultural technologies selected

for the production of agricultural products (Ajupov et

al., 2018). The Republic of Bashkortostan belongs to

the zone of risky agriculture, the risk of unforeseen

circumstances of a natural nature is constantly

present. Growth points in crop production are crops

such as rye, barley, wheat, oats and buckwheat (Table

5).

In 2020, there is a decrease in the yield of

potatoes, vegetables, sunflowers, legumes and a

number of other crops, which is due to non-

compliance with the agricultural technology system,

which provides highly productive varietiesfor the

selection, tillage, the use of fertilizers (organic,

mineral), the quality of sowing, plant protection, post-

harvest processing, storage of products (Kurbanaeva,

2018).

Table 5: Yield of agricultural crops, centners per hectare of

area (Official website of Rosstat of Russia).

2017 2018 2019 2020

Grain (in weight

after processing)

21.8 18.6 19.8 22.8

rye 20.5 20.4 19.6 24.0

wheat 22.7 19.6 20.2 23.4

arle

24.3 18.9 21.2 21.7

oats 21.3 16.4 17.3 17.9

millet 15.7 14.0 12.4 13.7

uckwheat 10.3 9.7 11.2 12.4

legumes 18.6 15.2 17.3 16.2

Sugar beet

(

factor

310.4 317.5 381.3 450.2

Sunflower seeds 11.9 14.5 14.3 13.9

Potatoes 123.2 166.4 176.1 168.4

Vegetables 209.8 226.4 218.6 215.1

Corn for silage,

green forage and

187.9 200.8 230.9 221.5

Fodder root crops

(including sugar

beets for livestock

feed)

218.6 209.9 211.4 207.6

Hay of perennial

grasses

21.1 18.2 17.3 19.1

As a result, the harvest of sugar beet in the

republic decreased by 35.0%, potatoes - by 18.0%,

sunflower - 14.9%, vegetables - 4.5%, corn - 1.2%.

Up to 20% of grain is lost during the harvesting phase

due to the low efficiency of outdated equipment

(Table 6).

Table 6: Gross harvest of agricultural crops in the Republic

of Bashkortostan, thousand tons.

Indicators 2017 2018 2019 2020

Grain (in weight

after

rocessin

3783 3059 3247

4010

e 318 345 230 388

wheat 1843 1436 1464 1868

arle

912 744 938 993

triticale 35 30 13 27

oats 367 246 276 262

millet 4 2 6 5

uckwheat 129 80 63 68

corn for grain 57 37 65 56

legumes 118 139 192 193

Sugar beet

(factory)

1590 1426 1802

1171

Sunflower seeds 274 324 356 303

Potatoes 649 852 852 699

etables 301 313 290 277

Corn for silage,

green fodder and

1413 1314 1302

1287

Fodder root crops

(including sugar

beet for livestock

feed

)

44 29 30

Hay of perennial

grasses

767 620 549

614

Hay of annual

rasses

87 76 75

The study of the dynamics of production of certain

types of crop production in the Republic of

Bashkortostan provides the basis for conclusions on

ISSDRI 2021 - International Scientiﬁc and Practical Conference on Sustainable Development of Regional Infrastructure

442

the need for additional measures in relation to

agricultural products, for which there is a

deterioration in indicators.

Modern fodder production is the most large-scale

and multifunctional branch of agriculture, it plays a

crucial role not only in animal husbandry, but also in

the management of agricultural land. The

development of agriculture and ensuring the country's

food security largely depend on the level of scientific

and technological progress in fodder production. In

the structure of costs for the production of livestock

products, 50-70% are the costs of feed; therefore, the

profitability of animal husbandry directly depends on

their cost (Bulatjva, 2018). As follows from table 5,

the production of corn for silage decreased by 4.1%,

fodder root crops - by 1.8%.

The main condition for increasing the economic

efficiency of production, as well as the dynamic

development of agriculture in the Republic of

Bashkortostan is the creation of a decent material and

technical base.

It should be noted that investments in 2020 for the

renewal and replenishment of agricultural machinery

increased after a long period of reduction in

investments in the modernization of agricultural

production in the region (Table 7).

Table 7: Purchase of agricultural machinery in the Republic

of Bashkortostan.

Year

Quantity, units

Investment

amount, billion

rubles

Total

Including

imported

equipment

2013 3721 405 4.6

2014 2620 301 4.1

2015 2145 202 2.8

2016 2185 176 3.5

2017 2230 272 4.0

2018 1961 233 4.2

2019 2700 357 6.5

2020 2606 364 7.7

In 2020, the amount of investments for the

purchase of agricultural machinery in the republic

amounted to 7.7 billion rubles, which is higher than

the amount of investments in 2019 by 1.2 billion

rubles, or 18%. Subsidies from the republic's budget

amounted to 1.5 billion rubles, or almost a quarter of

the direct costs of the agricultural sector for the

purchase of agricultural machinery.

In 2020, agricultural producers of the Republic of

Bashkortostan purchased more than 2.6 thousand

units of machinery and equipment (Figure 2). The

share of imported agricultural machinery purchased

was only 14%. Mainly purchased equipment for the

agro-industrial complex of domestic production. The

technical park of the region was replenished with

grain harvesters, tractors of various classes, tillage

and sowing machines and other equipment.

Figure 2: Purchase of agricultural machinery in the

Republic Bashkortostan, number of units.

Under leasing agreements, agricultural equipment

worth 2.3 billion rubles was purchased in the

republic, including through the Rosagroleasing

organization - by 1.7 billion rubles. The company

"Rosagroleasing" delivered 503 units of equipment to

the republic. Small business entities issued

transactions for the purchase of equipment in the

amount of more than 400 million rubles, for which

they purchased 200 units of equipment. State support

for agricultural producers is expanding. State support

funds are allocated within the framework of the

national project "Creation of a system of support for

farmers and the development of rural cooperation,"

implemented in the region for the second year.

The state program for the development and

support of agricultural sectors of the region includes

dairy husbandry, crop production, meat breeding;

ensuring processing, storage and delivery of

manufactured products; promotion of investment

activities, modernization of agro-industrial complex

facilities. Technical and technological modernization

of the agro-industrial complex is one of the priority

areas of industry development in the Republic of

Bashkortostan.

4 DISCUSSION OF THE

RESULTS

To assess and monitor the situation with the

development of the agro-industrial complex in the

regions, a rating was developed by the Institute for

Integrated Strategic Research (ICSI), which allows

tracking the dynamics of indicators in agriculture

3721

2620

2145

2185

2230

1961

2700

2606

950

1900

2850

3800

4750

2013 2014 2015 2016 2017 2018 2019 2020

Ensuring Sustainable Development of the Agro-industrial Complex of the Republic of Bashkortostan

443

(Loginov, 2019). The rating allows you to assess the

state of the agro-industrial complex in individual

regions and the scale of imbalances based on an

integral indicator, which takes into account a set of

factors that affect productivity and effectively of

industry. Table 8 shows the first twenty regions of

Russia.

Table 8: Rating of the efficiency of functioning of the agro-

industrial complex of Russian regions for 2020 (Official

website of the news "RBC.ru").

Rati

Subject

of the

Russian

Federati

Integ

ral

ratin

Rati

Subject of

the

Russian

Federatio

Integ

ral

ratin

Krasnod

region

100.0

Tula

region

65.78

Moscow

cit

89.06 12

Lipetsk

ion

65.17

Voronez

h re

ion

84.00 13

Bryansk

ion

62.72

Republi

c of

Tatarsta

77.66 14

Kaluga

Region

60.79

Belgoro

d region

73.65 15

Irkutsk

region

59.50

Rostov

ion

73.18 16

Volgogra

d re

ion

59.04

Samara

Region

70.50 17

Stavropol

Territor

58.31

Moscow

region

69.83 18

Republic

Bashkorto

stan

57.18

Kalining

rad

region

68.30 19

Republic

Chuvashia

56.76

Kursk

region

66.86 20

Penza

region

56.45

The leaders of the rating, occupying the first three

places, were Krasnodar territory, the Moscow city

and the Voronezh Region. Consequently, the first

alarming conclusion is that the Republic of

Bashkortostan, which has significant agricultural

potential, did not even enterthe top ten of the rating.

Although the republic differs from many constituent

entities of Russia in favorable natural and climatic

conditions, developed infrastructure, effective

mechanisms of state support and support for

investment projects, fertile lands. The export volumes

of agricultural products of the Republic of

Bashkortostan also remain low (Table 9). The total

volume of exports of agricultural products from the

republic in 2020 amounted to only 148.6 million US

dollars (Official website of the Government of the

Bashkortostan Republic, 2020).

Table 9: Main indicators of export of agricultural products

of the regions in 2020.

By types of

products

Export, million USD

Krasn

odar

Territo

Mos

cow

Voronezh

Region

Republic

Bashkort

ostan

Fat and oil

roducts

403.0

113.

136.4 78.9

Cereals

1662.

205

5.6

138.7 16.7

Fish and

seafoo

1.7 61.5 0.3 -

Meat and

dairy

roducts

35.7

124.

5.8 4.3

Food and

processing

industry

roducts

209.8

574.

123.5 24.8

Other

agricultural

roducts

220.5

408.

60.9 23.8

Grand total

2533.

333

8.0

465.5 148.6

5 CONCLUSION

Thus, the problem of agricultural production is one of

the main ones in the social-economic development

and strengthening of the food security of the country

and regions. The Bashkortostan Republic having a

favorable geographical position, attractive natural

resources and conditions for agricultural production,

is inferior in terms of the efficiency of organization

and production of agricultural products. Food

processing enterprises are not sufficiently provided

with quality raw materials of domestic production,

produced according to Russian standards and

supplied for processing that based on competitive

prices. In terms of the level of processing of

agricultural products, the republic is only in sixth

place in the Volga Federal District.

A significant reserve for improving the

performance of the agricultural market is contained in

the improvement of the warehouse and logistics link

in the region, the unsatisfactory state of which leads

to losses of about 15% of agricultural products on the

way from producers to consumers, while in Europe

and the USA these losses amount to only 1-2%.

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444

It is necessary to develop investment projects in

the agro-industrial complex in strategic directions for

the region: deep grain processing and the

development of the processing industry, import

substitution, increasing export volumes through the

expansion of preferential lending to export-oriented

agro-industrial enterprises, subsidizing part of the

product’s transporting costs,providing partially

reimbursement for certification. State support should

provide stimulation and attraction of investments in

the development of not only large agricultural

holdings, but also small forms of business - farms and

cooperatives.

The increase in the level of food supply of the

region directly depends not only on the constant

monitoring of the development of agriculture and the

regulation of markets for agricultural products, raw

materials and food in the republic, but also on the

determination of strategic directions for the

development of agriculture and agriculture, as well as

on the implementation of targeted programs and

investment investments in modern projects.

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Ensuring Sustainable Development of the Agro-industrial Complex of the Republic of Bashkortostan

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