MACROECONIMIC FACTORS IN REALIZING EXPORT POTENTIAL FOR ANIMAL PRODUCTION

Abstract

The objective of the survey is to study the macroeconomic factors influencing the competitiveness of the animal products and the realization of the animal sector export potential benefits. The survey methodology was based on the domestic and foreign scientists’ works in the progressive development of the livestock sector, the formation of the domestic agricultural market, and the increase in the export potential of agriculture. The empirical research was based on the official datasets and the analytical materials obtained from the international unions, the branch associations, and the state institutions. The expert assessment method, the statistical methods in economic evaluation, and the estimation and construction practices were used in the survey. The trends in the animal product exports within the state agricultural development program were determined in the survey. For 2012-2016, the beef export volumes rose nine times, while the pig meat and egg exports reached 18.7 and 15.7 thousand tonnes, respectively. The effects of the devaluation and inflation processes happened to the Russian economy on the economic efficiency and the competitiveness of the domestic animal production were calculated. For instance, the average annual growth rate in the milk production costs for 2011-2016 comprised 8.3% with the increase in the total milk production costs (48.4%). It affected the development and the investment attractiveness of the sector. The measures to improve the mechanisms of the state support and to provide a favorable environment for the Russian animal product exporters in the international market have been proposed. Allocating the subsidies on the livestock product sales in the foreign market can improve the competitiveness of the domestic producers and offer the opportunity to stabilize the price situation  in the domestic market. The other form of a support under the state authorities should be the effective approaches to making easier the administrative barrier to using the veterinary and sanitary control for the domestic goods in the biggest global markets.