Development of the Agri-Food Market of the Krasnodar Territory in

the Context of Food Security in the Region

O. N. Kolomyts

, I. G. Ivanova

and R. F. Bakirov

Kuban State Technological University, Russia

Kuban State Agrarian University named after I.T. Trubilin, Russia

Keywords: Agri-Food Market, Food Security, Region, Consumers, Balance, Production and Consumption.

Abstract: The purpose of this study is to develop a holistic concept for the formation and sustainable development of

the regional agri-food market of the Krasnodar krai, mechanisms for the management and improving its

efficiency to reduce the asymmetry of its functioning and increase the level of food security in the region.

Within the framework of the study, the essential characteristics of the agri-food market that have a "vector of

market orientation" and the features of its formation were clarified; the level and intensity of the development

of the regional agri-food market were analyzed in dynamics; the balance of the agri-food market of the

Krasnodar krai was assessed. The results obtained can be used by regional authorities, the Ministry of

Agriculture, and the Ministry of Economic Development in the development of complex projects and targeted

programs for the development of the agro-industrial complex; in updating the regulatory framework of

regional agricultural policy; in justifying management decisions in the field of regulating the growth of a

certain branch of the economy of the constituent entity of the Russian Federation and improving its food

security, as well as in the business activities of business entities.

1 INTRODUCTION

The sustainable functioning and development of the

agri-food complex of the Russian Federation as one

of the priority national economic complexes of the

country is the determining vector of socio-economic

development, determining the vital activity of

society.

The agri-food market (AFM) is an important

segment of any national economy, the globalization

of which affects economic systems, thereby

determining their further development. The European

integration vector in the development of Russia

changes the structure of the market, its role, and

functions (Vlasov, 2018). The process of

development of the agri-food market in modern

conditions is complex and multifaceted, and

phenomena and processes associated with it acquire

new features that correspond to the needs of the

entities of the modern environment.

These trends are becoming more pronounced and

often repeated in the context of a globalized economy.

The processes of change in market systems are

dynamic, irreversible, and multilateral in the global

environment, which significantly affects all related

systems that are also the elements of state regulation

(Gaiduk, 2018).

The main aspects in the development

of economic systems are industry-specific features.

The already achieved level of development of the

agri-food market currently lags behind the indicators

of most European countries. At the same time, the

Krasnodar krai has significant potential, enabling to

occupy a leading position in the agri-food market on

a global scale.

The development of the agri-food market attracts

the attention of many scientists. Thus, the general

scientific study of the essence for the category

"development" is considered in the papers of O.

Khubar, V. Virchenko, A. Kuzmenko, Yu. Prikhozhi

na, A. Toynbi, O. Spengler, et al.

The sectoral aspects of the national agri-food

markets are traced in the papers of O. Berezin, N.

Datsenko, E. Kirilyuk, et al.

The main aspects of the nature and structure of the

agri-food market are considered in the research by

Samoylik.

It is also important to pay attention to the scientific

contribution of foreign authors (T. Burns, DeVille, I.

Skavronska, Ya. Mazurek, I. Meltsova, M. Sholtes,

Mamedov, et al., Dedina and Sánova, Vilmantas, and

Melnikas, et al.), studying the development of

agricultural markets in other countries.

316

Kolomyts, O., Ivanova, I. and Bakirov, R.

Development of the Agri-Food Market of the Krasnodar Territory in the Context of Food Security in the Region.

DOI: 10.5220/0010700400003169

In Proceedings of the International Scientiﬁc-Practical Conference "Ensuring the Stability and Security of Socio-Economic Systems: Overcoming the Threats of the Crisis Space" (SES 2021),

pages 316-322

ISBN: 978-989-758-546-3

All of the above determines the emergence of

modern determinants and mechanisms for the

development of the regional agri-food market, which

require additional research.

2 MATERIALS AND METHODS

Abstract-logical and formalized methods were used

to study the essence, formulate the characteristics and

identify the most significant factors of the "agri-food

market" category, and establish the patterns of its

development.

Generalization and description of facts and

events, projection of patterns of functioning of the

agri-food market of the region, methods of analogy,

and general scientific methods of theoretical and

empirical knowledge were used.

Comparison of indicators and trends,

identification of similarities and differences, as well

as identification of the most significant aspects and

factors of the formation and development of the AFM

were carried out by methods of comparative and

causal analysis.

The use of a systematic approach in the study

complements the traditional analysis with methods

that enable to study socio-economic processes in their

totality and interaction, considering the regional agri-

food market as an integral object consisting of

interrelated and interdependent elements (entities,

infrastructure, market conditions, etc.).

The author's personal observations and

developments, data from the Federal State Statistics

Service and Krasnodarstat, and official Internet

websites served as information and empirical basis

for testing the proposed hypothesis.

3 RESULTS AND DISCUSSION

The agri-food market (AFM) integrates the

agricultural and food markets, where the sale of

agricultural raw materials, products of processing

industries, agricultural and processing industries,

public catering and wholesale and retail trade is

carried out.

The problems of studying various aspects of the

development of the agri-food market are covered by

many researchers and scientists (Paramonov, 2016;

Ushachev, 2015; Zeldner, 2018; Kuchumov, 2018;

Mikhalko, 2017), but there is no unified interpretation

of the concept under consideration today.

The critical analysis and systematization of

existing points of view, variety of approaches, and

numerous modifications of the definition of "agri-

food market" allowed us to understand the agri-food

market based on the use of commodity-money

relations, as a set of relations of economic entities of

industry markets involved in the process of

production, distribution, exchange, and consumption

of food products and their promotion from producers

to consumers (auth.).

The agri-food market (Cole, 2018; Alston, 2000)

integrates three independent but interrelated markets,

each of which has its own characteristics (Figure 1).

Thus, the agri-food market is a multisectoral

complex ecosystem that includes the sphere of

circulation of agri-food products and ensures the

relationship between the production and consumption

of agri-food products, continuity, and integrity of the

reproduction process. The foundation of the AFM is

commodity-money relations that develop in the

processes of production, distribution, exchange, and

consumption of agri-food products, the structural and

functional organization of which is based on a set of

organizational, financial, economic, and social

institutional forms (Buks, 2016; Pérez-Escamill,

2017).

Within the framework of the study, the authors

consider the AFM as a system that covers a wide

range of economic relations that are manifested in the

process of interaction between agricultural producers,

processing enterprises, intermediaries, and other

market participants regarding the movement of agri-

food resources, as well as end users (Figure 2).

The functioning of the agri-food market is

impossible without state participation since it

coordinates the interaction of all market participants

through state support for agricultural producers and

various regulatory and legislative mechanisms

(Charles, 2014; Campbell). that allow regulating

market relations and smoothing their negative

aspects.

The concluded transactions between the entities of

the AFM in terms of the supply and sale of

manufactured products to meet the needs of the

population in accordance with the effective demand

and obtaining a socio-economic effect represent the

result of the functioning of the agri-food market

(Pingali, 2005). The foundation of management, the

basic component of the sustainability and efficiency

of agro-industrial production are the relations that

arise between the entities of the agri-food market,

which determine the structure, forms of product sales,

production costs, strategic directions of development,

etc.

Development of the Agri-Food Market of the Krasnodar Territory in the Context of Food Security in the Region

317

Figure 1: Agri-food market structure.

Figure 2: Agri-food market entities.

Economic crises negatively affect the income of

the population and, as a result, the consumption of

food. The social state, like the Russian Federation,

guided by the Constitution is obliged to ensure the

well-being of the population, its security, and

improvement of the standard of living. The standard

of living largely depends on the ability to meet

primary needs, including food (Kolomyts, 2019).

In the context of the pandemic, when due to the

suspension of the activities of a large number of

enterprises, a significant part of the population's

income has decreased; the state has taken a whole

range of measures aimed at maintaining the declining

incomes of the population.

The parity of the production-consumption ratio of

food products should be observed, since if production

volumes of some products are higher than the demand

SES 2021 - INTERNATIONAL SCIENTIFIC-PRACTICAL CONFERENCE "ENSURING THE STABILITY AND SECURITY OF

SOCIO - ECONOMIC SYSTEMS: OVERCOMING THE THREATS OF THE CRISIS SPACE"

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volumes, then it is necessary to export them, and vice

versa, if the population's demand for any products is

not satisfied, then it is necessary to organize its import

(Keyzer, 2007; Velinov, 2016).

The assessment of the factors of the regional food

market conjuncture involves the analysis of dynamics

of the import and export of food products (Figure 3).

The results obtained show that there is a

fluctuation in import volumes over certain years in

the study period. So, in 2019, compared to 2015, there

was a reduction in the import of sugar by 83.4%,

cheese by 48.1%. There is an increase in imports for

other types of food.

The main suppliers of food products to the

Krasnodar krai are the Belgorod, Pskov, Vladimir,

Moscow, Chelyabinsk, and Orenburg regions. The

total volume of imported products from these regions

is more than 80% of the total import of food products.

Figure 3: Import of main types of food products, t (GKS).

Table 1: Export of main types of food products, t (GKS).

Indicators 2015 2016 2017 2018 2019

Meat 5,271 8,405 5,772 6,874 6,542

Sausage products 14,188 11,234 11,623 11,312

11,235

Butter 1,190 1,222 820 1,104 1,398

Cheese 434 4,039 4,387 1,906 2,176

Development of the Agri-Food Market of the Krasnodar Territory in the Context of Food Security in the Region

319

Table 2: Balance of import and export of basic food products (GKS).

Indicators 2015 2016 2017 2018 2019

Meat 101,286 102,561 131,825 129,478 93,483

Sausage products 27,012 57,960 41,185 34,732 49,038

Butter 693 1,435 1,887 2,096 1,448

Cheese 41,422 33,389 15,614 16,298 19,123

Flour -21,678 57,428 23,221 93,308 87,750

Cereal -26,061 -81,524 11,349 -109,047 -69,993

Sugar -618,320 -751,278 -802,204 -621,619 -874,020

The increase in the export of food products in the

study period in physical terms was: for cheeses – five

times; for tea – nine times; for meat semi-finished

products – nine times; for cereals – almost twice; for

milk (except raw) – one and a half times; for

confectionery products – thirty-seven percent.

The export volumes of some food products

decreased: flour – by 3.2 times, canned meat – by

39.1%, sausage products – by 20.8%.

Enterprises of the Krasnodar krai produce a fairly

large volume of meat products, which affects the

decline in the production of producers from other

regions in the domestic market. Thus, the volume of

imported meat for the period from 2015 to 2019

decreased by 6.1% due to the redistribution of

commodity flows. It should be noted that now most

of the products produced are sold on the territory of

the Krasnodar krai.

The Krasnodar krai supplies more than 80% of

food products to Moscow and the Moscow region, as

well as to St. Petersburg and the Rostov region.

The negative balance of import-export of the

studied groups of food products indicates that the

volume of export of cereals and sugar exceeds the

volume of import. Thus, the export of cereals in 2019

exceeded the import by 2.3 times, sugar by more than

180 times.

To determine the level of balance of the regional

food market, it is necessary to assess the production

and consumption of basic food products using

integral estimates of the volume of production and

consumption of food products by the population of

the Krasnodar krai.

For this purpose, we used the method of N.V.

Shalanova:

where x

is the value of the j-th indicator in the

year t

of the analyzed period;

σ is the standard deviation of the j-th exponent;

is the weight of indicators;

The algorithm for calculating the integral estimate

is shown in Figure 4.

Figure 4: Algorithm for calculating the integral estimate.

SES 2021 - INTERNATIONAL SCIENTIFIC-PRACTICAL CONFERENCE "ENSURING THE STABILITY AND SECURITY OF

SOCIO - ECONOMIC SYSTEMS: OVERCOMING THE THREATS OF THE CRISIS SPACE"

320

Figure 5: Average per capita consumption of basic food products, kg. (Krasnodarstat, 2019).

To assess the balance of the regional food market

of the Krasnodar krai, the recommended norms of

food consumption were used (Table 3).

The results of the calculation of the integrated

assessment of the potential of the agri-food market

are summarized in Table 4.

Table 3: Recommended norms of consumption of basic food products, on average per capita in Russia (GKS).

Indicators

Per year, kg

Per day, g

Meat and meat products

200

Milk and dairy products

translated into mil

325

890

Eggs, pcs.

260

0.7

Bread and bread products

translated into flou

263

Potato

247

Vegetables and melons

140

384

Table 4: Integrated assessment of production and consumption of basic food products for 2015-2019.

Integral

estimation

2015

2016 2017 2018 2019

Production

15.7

15.8 15.3 15.8 15.7

Consumption

12.5

12.9 12.0 12.3 12.1

Balance sheet

3.2

2.8 3.3 3.5 3.6

Development of the Agri-Food Market of the Krasnodar Territory in the Context of Food Security in the Region

321

During the study period, the production of the

main types of food exceeded consumption. Almost all

product groups are produced in the region in

sufficient quantities. Today, the Krasnodar krai meets

the needs of the population in basic food products at

the expense of its own capacities. Export is carried

out if the production exceeds the demand.

Indicators of meat products and milk and dairy

products are slowing down and lagging behind the

recommended standards. Accordingly, their

insufficient production should be compensated by the

import of these products.

4 CONCLUSIONS

The results of the study indicate that most of the

indicators are within their acceptable values, which

characterizes the state of regional food security as

fairly stable, within the normal range. The threat is a

decrease in the potential of the agro-industrial

complex, social tension, which is manifested in a

significant income gap, low real incomes, and high

food prices, which reduces the availability of food

and increases social discontent.

The priority direction and basic task from the

point of view of providing the population with food

should be the improvement of regional agri-food

policy, and its solution should be accompanied by

import substitution of food, state support for

agricultural enterprises, integration processes in

agriculture, revision and adjustment of the current

doctrine of ensuring food security

ACKNOWLEDGEMENTS

The study was carried out with the financial support

of the RFBR and the Krasnodar krai in the framework

of the scientific project No. 19-410-230041.

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