The impact of Russian food security policy on the performance of the food system

Wegren, Stephen K.; Nilssen, Frode; Elvestad, Christel

doi:10.1080/15387216.2016.1222299

Cited by 25 publications

(16 citation statements)

References 9 publications

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“…From 1990 to 2000, total agricultural output declined by about two-fifths and the production of livestock goods by half, and Russia became a big meat importer (3.0 million tons in 1997, the year before Russia's severe economic crisis of the late 1990s, and 25% of total world meat imports; W. Liefert & Liefert, 2012; US Department of Agriculture Foreign Agricultural Service [2017b, USDA PSD]). Import substitution and self-sufficiency are major goals of Russia's current agricultural policy (as investigated by Wegren et al, 2016). The Russian government, including the Agriculture Minister and President Putin, have argued that the economic crisis (and import ban) provides the country with the opportunity to strengthen agricultural production, import substitution, and self-sufficiency (The Moscow Times, 2015;Russia Insider, 2015;USDA, 2015).…”

Section: Introductionmentioning

confidence: 99%

The effect of Russia’s economic crisis and import ban on its agricultural and food sector

Liefert

Seeley

et al. 2019

Journal of Eurasian Studies

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This article examines how Russia’s economic crisis and ban on agricultural imports from the United States and other Western countries that began in 2014 have impacted its agricultural and food sector. The import ban was a Russian response to geopolitical tension with the West stemming from the country’s conflict with Ukraine, while the main cause of the economic crisis was a plunge in world oil prices. Given that the bulk of Russia’s export earnings come from oil and other energy products, the oil price decline triggered a major depreciation of the ruble against the US dollar and other major currencies. Ruble depreciation and the import ban have affected Russian consumers by reducing Russia’s imports of agricultural and food products, substantially raising food prices, and lowering consumption. However, the country’s basic food availability has not been threatened. By increasing domestic prices, the depreciation and import ban have stimulated agricultural production. The added output has reduced meat imports and raised grain exports. Russian meat imports in 2014–2016 (average annual) were about 40% lower compared to 2011–2013, while grain exports in 2014–2016 were 50% higher than in 2011–2013 (though production-enhancing favorable weather was also a cause).

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Section: Introductionmentioning

confidence: 99%

The effect of Russia’s economic crisis and import ban on its agricultural and food sector

Liefert

Seeley

et al. 2019

Journal of Eurasian Studies

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“…The format of the market was changed by the import ban and the state having not reversed it to the previous equilibrium but, rather, having formed a new one. It is a fact that the introduction of the Russian import ban was expected to increase self-sufficiency of Russia in terms of food, which is largely discussed and accepted in current research literature (see, e.g., References [25,26]). The increased transfers to producers from consumers of milk show more evident monetary part of the cost of self-sufficiency.…”

Section: Discussionmentioning

confidence: 99%

“…Authors that study effects of the Russian import ban also point out that growing self-sufficiency in food and seafood is the result of the ban [24,25]. At the same time, since the establishing of the Russian Food Security Policy in 2010, average per capita food consumption improved, although the poor consume much less [26].…”

Section: Introductionmentioning

confidence: 99%

Trade Sanctions and Agriculture Support in Milk and Dairy Industry: Case of Russia

Krivko

Smutka

2020

Sustainability

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Economic sanctions between the European Union and Russia have significantly changed trade relations between them, while there are controversial assessments of sanctions’ impact on both economies. Russian import ban has changed domestic producer prices in Russia, offering domestic producers a unique opportunity. There is an opinion that increasing self-sufficiency supports sustainable growth in agricultural production. At the same time, there is question of when and whether Russian import ban will be lifted? This paper offers an overview of changes in milk producer prices and support for milk producers in Russia in the period after the Russian import ban. We argue that currently the Russian Government has little incentive to lift import ban for milk and dairy products, as state support of agricultural producers has been decreased in significance for producers and was replaced by market prices support. Main findings suggest that all Russian federal regions experienced significant increases in transfers to producers from consumers; however, the pace of the increase appears to be different across regions. Paradoxically, the Western sanctions helped Russian milk and dairy industry to strengthen its position.

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“…Against this background and as a reaction to sanctions by Western countries in the course of the political conflict over Ukraine, the Russian government imposed an embargo on a range of agricultural and food products imported from the European Union (EU), the United States, Canada, Australia and Norway in August 2014 (FAO, ). As worldwide food prices had increased and droughts in some of the main agricultural regions had occurred, self‐sufficiency in food became (again) a strategic policy goal of the Russian government (Wegren et al ., ). Among all products covered by the Russian import ban, the deficit in domestic self‐sufficiency has been large for dairy products.…”

Section: Post‐soviet Dairy Chain Restructuring In Russia and Kazakhstanmentioning

confidence: 97%

Herd Growth, Farm Organisation and Subsidies in the Dairy Sector of Russia and Kazakhstan

Petrick¹,

Götz²

2019

J Agricultural Economics

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Initially taken as a template for farm restructuring after the demise of collective agriculture, the 'Western family farm model' has taken root in the former Soviet countries only belatedly and incompletely. We examine dairy structures in Russia and Kazakhstan and analyse the drivers of recent herd growth. We are specifically interested in the role of farm management and organisation, vertical integration, and the role of policy. Regression analysis based on a sample of 180 randomly selected commercial dairy farms, using an innovative simultaneous equation framework, shows that better herd management and access to milk marketing contracts were more effective in stimulating herd growth than current subsidy payments. We do not find evidence that milking plants belonging to corporate entities or even supra-regional agroholdings grow more substantially than medium-sized individual farms. Twenty-five years after the end of central planning, structural change among commercial dairy farms in Russia and Kazakhstan appears similar in many ways to the patterns observed in the West more recently: smaller farms catch up in terms of herd growth and classical family-run operations coexist with or even emulate vertically integrated agribusinesses based on hired labour. In moving toward this 'new normal' of farming structures, commercial dairy farms in Russia may even be a few steps ahead of their Western counterparts. At the same time, the still sizeable but stagnating group of subsistence producers in rural households finds no equivalent in the West.

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The impact of Russian food security policy on the performance of the food system

Cited by 25 publications

References 9 publications

The effect of Russia’s economic crisis and import ban on its agricultural and food sector

The effect of Russia’s economic crisis and import ban on its agricultural and food sector

Trade Sanctions and Agriculture Support in Milk and Dairy Industry: Case of Russia

Herd Growth, Farm Organisation and Subsidies in the Dairy Sector of Russia and Kazakhstan

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