Economics/6.Marketing and management

Kolentsev Y.V.

Orel State Technical University, Russia

STRATEGY’S ADJUSTMENT OF AGRICULTURAL STATE SUPPORT IN RUSSIA THAT BASED ON THE PRINCIPLES OF MARKETING

The objective reality is that agriculture cannot exist without help of state, at least because of its inherent risks. That is why, each state, which is responsible for the socio-economic stability, develops and implements adequate strategy of national agriculture’s support. The Russian Federation also has a similar strategy that requires a radical revision in connection with the upcoming accession to the WTO.

The main factor dictating the need to adjust the strategy is a plan to reduce subsidies to agriculture; Russia takes this plan as a condition of entry into the WTO. In particular, Russia must fix the amount of state support for agriculture at $ 9 billion since the entry into the World Trade Organization and until 2012. In addition, for the period from 2013 to 2017 the amount of support for agriculture in the country should be reduced almost twice less to 4.4 billion dollars. Finally, Russia undertakes not to use export subsidies for domestic agricultural products since its accession to the WTO.

Obligations which are accepted by Russia are very serious; they can cause significant damage to national agriculture, which has starting to recover in recent years. Therefore, public authorities at federal and regional levels should immediately develop a new strategy for providing support measures for this industry.

We note a number of important directions in the development of new strategies that should be implemented in terms of modern marketing concept.

At-first, the laws of the global market demand Russia to form a support system such as it exists in the United States and European Union and to react on all measures and innovations, which have been undertaking in these countries.

Secondly, the external marketing environment dictates the need for shifting from the use of strictly regulated instruments to support measures of the "green box", which are not installed so restrictive. These include budgetary support measures for infrastructural projects in agricultural production, processing, product sales, including the construction of rural roads, pipelines and power lines, state support of farmer’s income gas insurance and state appropriations for science and education, etc.

One of the most effective strategic directions of support is implementation of various scientific and technical programs that facilitate the modernization of agriculture. For example, the Russian Ministry of Agriculture and the Belarusian Ministry of Agriculture acted as state orders of the research program whose aim is a complex solution problems of production and processing vegetables. For three years, Russian and Belorussian scientists developed 10 new technologies, 26 kinds of import-substituting machinery and equipment which are used in the manufacturing, transportation and storage of fruit and vegetable production. Major push was also made in processing: canning factories were able to take advantage of those 13 new technologies, and 14 kinds of machines and equipment, which are able to replace more expensive import analogs [1].

Registration of market participant’s requests provided the effect, which was pretty fast felt by peasants and buyers of fruits and vegetables. It became possible thanks to an acceleration of the new developments in the production. Thanks to the Union program a lot of new machines for vegetable growing were produced.

As a result, now Belarus is not only completely self-sufficient in carrot, onion beetroot and cabbage, but grows vegetables, that have been rare for the country before - asparagus, cauliflower, green peas, and various greens. Experts counted that the implementation of new technologies and the use of new technology, developed by the Union Program, will increase the gross collection of clean fruits and vegetables in 1,2-1,3 times, will reduce costs for its transportation in 1,4 -1.6 times and the storage deposit - in 1,3-1,4 times [1].

The same imposing effect was obtained at the Belarusian processing companies. For example, sets of equipment for the production of fruit juices and washing, cleaning primary products, were made for them. The technology was development and equipment was produced for making dry products in powdered form. It is important, that all these technical and technological know-how are in two or three times cheaper than imported [1]. The above example illustrates that the implementation of scientific and technical programs provides the solution of the major task: competitiveness’s improving of domestic agricultural production in the context of globalization.

The third feature is shifting from use of measures developed and implemented by the government of the country, to similar action by regional and local authorities. It stems from the fact, that most of the accepted restrictions in the WTO refers to activities implemented at the federal level.

Finally, the fourth feature of the new strategy is the need to enhance our marketing approach to developing and implementing specific measures of agriculture’s support. On the one hand, within the constraints defined by membership in the WTO, the possibility of massive support measures in agriculture is reducing. On the other hand, manufacturers have different needs and demands of government support that could be significantly different in every region and municipality. It should be accounted in developing of appropriate strategy.

Currently, private yards occupy a large share of potatoes, vegetables and fruits harvest in Russia. One of the main problems for them is the realization of produced surpluses. Marketing tools for stimulating sales effectively used to solve this problem in the Lipetsk region. Thus, the regional program the development of rural consumer cooperatives in 2010-2012" was changed according to which the cooperatives, engaged in buying milk from people, got extra help. The share of subsidies to cover their costs of buying machinery and equipment for processing and storage of milk increased to 80 percent. The research of people’s requests showed that the list of subsidized equipment, in addition to milk, should be supplemented with the isothermal vans with refrigeration unit and weighting instruments.

The private holdings can get a similar help through a network of procurement centers, owned by consumer cooperatives. Government support of the marketing distribution system can be implemented through rendering of assistance for consumer in modernization its material-technical base, subsiding loans for the purchase, storage and processing of products. This provides the support for farms. A tool of this help is to expand the guaranteed sales market with the help of their products. E. Kuznetsov, who is the head of Russian Centrosoyuz, claims that this way can enlarge the volume of purchases, production and processing of agricultural products [2].

The research of formed distribution’s marketing channels of the agricultural products shows that it is impossible to sell favorably their own products to small producer of products because of the politics pursued by the mediators in the face of private markets and large trading networks. Rural producers will get a chance to trade freely on the area of large enterprises and provincial fairs thanks to the program of food security in Omsk region [3].

These examples show that Russia's entry into the WTO would not affect negatively on the competitiveness of the national agriculture, if skilful use of contemporary marketing concept is considered when developing support strategy for agriculture.

Literature

1. Vitamins to the table / / Rossiyskaya Gazeta. - 2010. - 19 August. - p. 18;

2. Chkanikov M. Replacement of Basket / / Rossiyskaya Gazeta. - 2010. - 29 September. - p. 4;

3. 3. Sibina C. Intermediaries no entry / / WG. - 2010. Intermediaries no entry / / RG. - 2010. - September 24 - p. 5