The Agricultural Sector in Canadian Economy: Lessons and Recommendations for Russia

Любимова М.М.1 , Иванова Н.И.2

1 студентка кафедры « Мировой экономики », ФГБОУ ВО «СГЭУ», Самарский государственный экономический университет, Самара, Российская Федерация (443090, Приволжский федеральный округ, Самарская область,  г. Самара, ул. Советской Армии, д. 141), email: mari.blackrose@mail.ru

2  к. эк. н., доцент кафедры «мировой экономики», ФГБОУ ВО «СГЭУ», Самарский государственный экономический университет, Самара, Российская Федерация (443090, Приволжский федеральный округ, Самарская область,  г. Самара, ул. Советской Армии, д. 141), email: cleotasha@rambler.ru

Данная статья посвящена изучению особенностей сельского хозяйства двух крупнейших по территории государства современного мира - России и Канады, определению роли и места сельского хозяйства в экономиках данных стран. Актуальность данной статьи не вызывает сомнения, поскольку сельское хозяйство является одной из приоритетных отраслей экономик обеих стран. Авторами проведена работа по изучение и выявление основных факторов влияющих на сельского хозяйство и ключевых причин его эффективности (на примере высокотехнологического сельского хозяйства Канады). Для достижения данной цели были поставлены следующие задачи: 1) Изучение географических особенностей данных стран и влияние данных факторов на сельское хозяйство 2) Анализ отраслей растениеводства и в обеих странах. 3) Сравнение отраслей животноводства Канады и России. 4) Выявление рекомендаций  для улучшение эффективности сельского хозяйства России .

 Немаловажным является и то, что авторы уделяют внимание рассмотрение политико-экономических отношениях в современных условиях. Подробно рассмотрены климатические  и географические условия России и Канады в сравнение, уделяется внимание экспорту, тщательно рассматривается растениеводство и животноводство обеих стран. Особое внимание уделяется тенденциям  в сельском хозяйстве РФ после введения санкций. Приведены статические данные и показатели в которых отражается изменение за последние годы ,также приведён анализ этих данных и сделаны выводы. Все содержание статьи логически взаимосвязано и подтверждено статистическими данными из авторитетных источников.

Ключевые слова: Сельское хозяйство, Растениеводство, Животноводство, Канада и Россия, санкции.

Lyubimova M.M.1, Ivanova N.I.2

1 student of dept. «World Economy»,  Samara State University of Economics, Samara, Russian Federation (443090, Privolzhsky Federal District, Samara Region, Samara, Soviet Army Street, 141), email: mari .blackrose @ mail.ru

2 Ph.D., assistant professor of dept. "World Economy",  Samara State Economic University, Samara, Russian Federation (443090, Privolzhsky Federal District, Samara Region, Samara, Soviet Army Street, 141), email : cleotasha@rambler.ru

This article is devoted to the study of the features of agriculture of the two largest countries of the modern world - Russia and Canada, determining the role and place of agriculture in the economies of these countries. The relevance of this article is beyond doubt, because the agriculture is one of the priority sectors of the economies of both countries. The authors carried out work on the study and identification of the main factors affecting agriculture and the key reasons for its effectiveness (on the example of Canada's high-tech agriculture). To achieve this goal, the following tasks were set: 1) Study of the geographical features of these countries and the impact of these factors on agriculture 2) Analysis of crop production in both countries. 3) Comparison of the livestock sectors in Canada and Russia. 4) Identification of recommendations for improving the efficiency of agriculture in Russia.

 It is also important that the authors pay attention to the consideration of political-economic relations in modern conditions. The climatic and geographical conditions of Russia and Canada are compared in detail, attention is paid to exports, carefully considered crop production and livestock in both countries. Particular attention is paid to trends in agriculture in Russia after the introduction of sanctions. Static data and indicators are presented in which the change in recent years is reflected, an analysis of these data is also given and conclusions are drawn. The whole content of the article is logically interconnected and confirmed by statistical data from authoritative sources.

Keywords: Agriculture, Crop production, Livestock, Canada and Russia, sanctions.

 

The topic of this work is relevant at the present time. The sanctions imposed against Russia were the impetus for the development of agriculture. Canada has similar climatic and geographic conditions with Russia, but it has very high rates in agriculture. Canada has developed agriculture, being one of the largest in World exporter of food. It is characterized by a high level of marketability, mechanization, specialization of production.[19] This is still not enough for our country. Russia and Canada have been called country-tweens for a long time due to their unique nature identity. Not only the nature and climate of Russia and Canada are common, but their rich environmental resources, as well as the difficulties with natural capital development. The topic of this article concerns agriculture of both countries. Russia and Canada are big exporters of white straw crops. The annual added value of agriculture was 2.8% in Canada and 3.3% in Russia, which indicates their comparability. (for 2016) [8] The purpose of this paper is to consider and compare the agricultural development of the two countries.

First, it is necessary to say some words about Geographical position of both countries. Canada is the second largest country in the world after Russia and the first in North America. It occupies practically 10 million square kilometers, or 1/12 terrestrial land, is washed by three oceans, has the longest coastline with a total length of 244 thousand km (including islands). The climate in Canada is mostly temperate and subarctic. The Rocky Mountains and the Cordilleras (young) occupy 50% of the territory. Canada is rich in rare metals such as uranium, iron ore, natural gas, oil, coal, potassium salts, asbestos. Plains of the north and west are rich in energy raw materials, and areas of the Canadian Shield - with metallic ores. [11]The country is covered with a dense and full-flowing river net. The hydropower potential of its rivers is one of the largest in the world. [9 ]The real wealth of the country is the forest tracts, consisting of coniferous species and occupying almost half of the territory of Canada. The country has no equal in terms of timber reserves per capita. Russia is the largest country in the world, it occupies about 1/8 of the land (excluding Antarctica).[1]Russia is located in the north-eastern part of the largest continent - Eurasia, occupying about one-third of its territory, including the eastern part of Europe and the north of Asia.[3]  About 70% of the country is covered by plains and lowlands.[2 ] Russia is very rich in forests, almost 40% of the territory is occupied by them. There are 4 climatic zones Russia: Arctic, subarctic, temperate, which is the main part of the country and subtropical.[16]A significant part of the territory of Russia is unfavorable for agriculture, especially plant growing. However, the active development of space, the building of large cities in the harsh environment led to the expansion of agricultural production far beyond the boundaries of territories with favorable soil and climatic conditions. Depending on climatic conditions, soil types, each region specializes in certain crops. According to the reserves of fresh water Russia ranks first in the world.[14] Forests occupy 45% of the territory of Russia, and the total area of ​​the forest fund is 1179 million hectares. Coniferous species prevail in the forests (spruce, pine). They occupy 70% of the forest area and constitute 77% of the total timber stock. Almost all types of minerals have been explored in Russia.

Secondly, it is necessary to compare The main features of plant-growing in  both countries.The production of potatoes, beans, sugar beets, vegetables is developed in Russia, grain and oilseeds grow. [15]The Volga region, the Urals, Western Siberia, and the Southern Caucasus are the country's bushels. The bulk of cereals, as in the whole world, is wheat.  There are 10% of all arable lands of the world in Russia.[5 ] And thanks to weather conditions, in Russia both winter and spring crops are grown. In addition to barley and wheat, rye is grown in Russia, oats, corn, buckwheat and rice are cultivated. Among the root crops, the first place is occupied by potatoes. Another branch of plant growing in Russia is the cultivation of leguminous plants, which include beans, lentils, soybeans, peanuts, and the like. Seeds of which can be eaten both after appropriate treatment, and in a raw kind. Textile crops are represented in Russia by cotton, as well as flax-dolguntsem, which serve as raw materials for the domestic textile industry. Another direction, less developed in Russia because of the climate, is vegetable growing and melon growing. Nevertheless, in Russia, vegetables such as beets, onions, cabbage, tomatoes, carrots, etc. are grown. Watermelons and melons grow in the lower reaches of the Volga and in Orenburg region. The table below shows gross collections of the main crop plants in Russia for the period 2001-2015.[14]


 

Gross collections of the main plant growing crops in Russia in 2001-2015, thousand tons

Name of culture

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Wheat (winter and spring)

46996,3

50622,1

34069,8

45433,7

47614,7

44926,9

49 368,0

63 765,1

61 739,8

41 507,6

56 240,0

37 719,6

52 090,8

59 711,4

61 785,8

Rye (winter and spring)

6 631,5

7 121,7

4 146,8

2 864,2

3 622,4

2 959,3

3 909,4

4 505,1

4 333,1

1 635,6

2 970,8

2 131,5

3 359,9

3 280,8

2 086,7

Tritikale (winter and spring)

н/д

н/д

н/д

н/д

н/д

н/д

н/Д

н/д

508,0

249,2

522,6

464,3

581,5

654,1

564,6

Barley (winter and spring)

19477,6

18678,4

17926,4

17087,6

15683,8

18036,5

15 559,1

23 148,5

17 880,8

8 350,0

16 938,0

13 951,7

15 388,7

20 444,3

17 546,2

Oats

7 718,7

5 682,8

5 169,0

4 936,7

4 545,1

4 860,3

5 383,5

5 834,9

5 401,2

3 219,6

5 332,1

4 027,3

4 931,8

5 273,8

4 535,6

Corn (for grain)

808,4

1499,4

2 030,9

3 373,0

3 060,2

3 510,4

3 798,0

6 682,3

3 963,4

3 084,4

6 962,4

8 212,9

11 634,9

11 332,1

13 173,3

Sorghum

35,2

27,3

33,4

43,9

28,2

35,5

40,2

75,6

13,5

9,2

60,0

45,2

172,0

219,8

193,8

Millet

550,3

293,4

974,3

1113,5

455,1

598,8

417,4

711,0

264,7

133,6

878,3

333,6

418,8

492,8

572,2

Buckwheat

574,0

302,0

524,7

648,7

604,8

865,2

1004,4

924,1

564,0

339,3

800,4

796,6

833,9

661,8

861,2

Rice

495,5

488,1

448,1

469,8

570,8

680,6

704,5

738,3

913,0

1060,7

1 055,6

1 051,9

934,9

1048,6

1109,8

Cereals TOTAL

83287,5

84715,3

65323,5

75971

76185,1

76473,5

80 184,5

106 384,9

95 581,5

59 589,0

91 760,2

68 734,5

90 347,4

103 119,4

102 429,1

Leguminous crops

1 796,6

1 763,5

1 638,6

1 860,9

1 618,1

1 753,6

1 287,1

1 794,1

1 529,0

1 370,6

2 452,7

2 173,5

2 037,3

2 195,6

2 356,9

Sugar beet

14552,7

15658,8

19355,3

21809,4

21275,5

30672,9

28 836,2

28 995,3

24 892,0

22 255,9

47 643,3

45 056,9

39 321,2

33 513,4

39 030,5

Sunflower seeds

2 682,2

3 688,4

4 887,0

4 810,3

6 469,6

6 743,4

5 671,4

7 350,2

6 454,3

5 344,8

9 697,5

7 992,7

10 553,7

8 475,3

9 280,3

Soya beans

349,6

422,5

392,5

554,2

686,1

804,5

650,2

746,0

943,7

1 222,4

1 756,0

1806,2

1 636,3

2 363,6

2 703,3

Seeds of rapeseed (winter and spring)

113,2

115,3

191,9

276,8

304,2

522,1

630,3

752,2

666,8

670,1

1 056,1

1 035,5

1 393,3

1 337,9

1 012,2

Seeds of redhead

н/д

н/д

н/д

н/д

н/д

н/д

н/Д

н/д

н/д

н/д

35,2

56,4

127,6

137,8

89,8

Mustard seeds

28,1

35,0

85,6

54,9

62,8

64,0

11,0

29,1

23,7

36,4

88,1

41,5

54,7

93,2

66,7

Potatoes (industrial sector *)

2 621,4

2 330,9

2 672,3

2 971,1

3 156,7

3 849,6

3 941,9

4 769,2

5 888,0

3 388,0

6 662,9

6 227,6

5 358,2

6 174,5

7 550,3

Vegetables of open and protected ground (industry Sector *)

2 652,3

2 385,9

2 895,9

2 832,2

2 900,1

3 277,9

3 171,1

3 802,1

3 847,6

3 457,8

4 913,0

4 515,0

4 490,6

4 655,2

5 312,2

Melon Crops (Industrial Sector *)

225,5

295,5

310,5

419,3

419,3

460,6

497,8

568,0

556,1

582,6

724,8

624,5

615,8

639,9

682,4

* - collections of potatoes, vegetables and melons in the table are presented only for the industrial sector,   which are agricultural organizations and peasant farms and do not include the economy of the population. For other crops, information is provided for all categories of farms

 

Impressive results over the past ten years have reached rice growing. So, in 2015 (1109,8 thousand tons ) the volumes of rice harvest exceeded the figures of 2005(570,8 thousand tons) almost twice. Collections of buckwheat in 2015 have updated the figures of ten years ago by 42, 45 tons. Collections of buckwheat in Russia in 2015 amounted to 861.2 thousand tons, which is 42.45 more than 10 years ago. Maximum buckwheat yield in the past 15 years was 1,004,400 tons in 2007.The sugar industry in the Russian Federation is represented by the cultivation of sugar beet, gross collections of which, compared to 2005, increased by almost 28 percent. Increased investments are directed by the government for the cultivation of oilseeds, as well as oil-oil crops. The reason for this is the increased demand for processed products (vegetable oils, oil cake, meal, protein concentrates) in the world market. Gross collections of sunflower increased by forty-three percent compared to 2005. The volume of export of sunflower oil in 2015 amounted to 1 237.4 thousand tons. The production of potatoes in the Russian Federation in comparison with 2005 for gross charges exceeded the previous figures by two and a half times and is seven and a half tons. The production of vegetables in the industrial sector, formed from agricultural organizations and farms, amounted to 5 312, 2 thousand tons, which is eighty three percent higher than ten years ago. The total output of crop production in all categories of farms (commercial sector, which includes agricultural organizations and peasant farms and non-profit sector - households) in Russia in 2015 in value terms is estimated at 2 636.8 billion rubles. As compared to 2014, the value of crop production increased by 18.6% or by 414.3 billion rubles.

In the structure of Russia's sown areas, wheat ranks first, accounting for one third of all areas (33.8%) in 2015. Also, significant areas are covered by such crops as barley (11.2%), sunflower (8.8%), oats (3.8%), maize for grain (3.5%), soybean (2.7%) , Leguminous plants (2.0% - mainly peas), rye (1.6%), sugar beet (1.3%), rapeseed (1.3%), buckwheat (1.2%).Agricultural land occupies about 7.2% of Canada.[6]  More than three-fourths of this area, used for growing agricultural products, is located in the provinces of the Central West of the country.[11] These provinces produce mainly wheat, one of the largest world producers of which Canada is. Half of all wheat produced in Canada was grown in Saskatchewan. The second largest producer of wheat in the country is Alberta, followed by Manitoba. The industry employs 5% of the economically active population of the country, it gives 9% of GDP and 11% of the cost of all exports.[21 ] Agro climatic conditions are similar to weather conditions on the territory of Russia. Canada fully provides itself with basic types of food products and is one of the leading countries in the world for the production of grain. Wheat, barley, oats, vegetable oil are exported abroad. According to statistics, it ranks 5th in the world in the collection of cereals (57 million tons) and the third place in the world for the collection of wheat. One inhabitant accounts for 1.7 tons of grain, 1 place in the world. It should be noted that the development of production of quality wheat, its selection and seed production, began with Russian varieties such as "Beloturka", "Chernouska", etc., imported into Canada by settlers from pre-revolutionary Russia and Ukraine. The basis of enterprises is farming. The vast majority of farmers are land owners, and the vast majority of farms are highly specialized enterprises. The average annual harvest of the most important crops is 32 million tons of wheat, 15 million tons of barley, 7 million tons of corn, 4 million tons of oats. The hot summer of the south of Ontario and Quebec and the long growing season in this area allow the cultivation of a variety of foods such as lettuce, cucumber, corn, apples, strawberries and tobacco. In the Atlantic provinces, the main cultivated plaint is potatoes. Canada is the second in the world, after the US, an exporter of food. Farmers in this country, caring for diversification of cultivated products, also began to cultivate varietal lentils, rapeseed and ginseng to meet the growing demand in the country for these products. Thirdly, it is necessary to compare livestock in both countries. Livestock in Canada accounts for more than half of the total agricultural output. Dairy and beef cattle breeding prevails, as well as sheep and poultry farming. Fisheries and forestry are also developed. The provinces of the Central West are areas of developed cattle breeding. The Alberta region has the largest canal population (or Bos taurus, the Canadian breed of cows) in the country - it's the province with the best meat production index in Canada, and most of the beef is transported and sold in other regions of the country or exported to the US.

In the postwar period, animal husbandry began to develop more actively. The structure of industries has also changed.[5] Thus, the share of the most intensive areas - poultry farming, dairy cattle breeding and stall fattening of cattle - has increased in livestock. Reindeer husbandry, hunting and fishing are common in the north of the country. Dairy farming and poultry farming are characteristic of the southern provinces of Ontario and Quebec, south-west of British Columbia; Meat and wool cattle breeding - for the provinces of Alberta and British Columbia. Important value is preserved by fishing (cod, herring, salmon, halibut, crabs). Canada is one of the leading exporters of frozen fish. The dairy industry has a significant presence in all provinces and is one of the two main agricultural commodities in seven of the ten provinces. In 2016, there were 959,600 dairy cows at 11,683 farms across the country. The Canadian dairy sector contributes about $ 18.9 billion annually to Canadian GDP and provides approximately 215,000 jobs equivalent to full employment. The livestock breeding base in the Russian Federation is cattle breeding. Dairy cattle are bred in the north and in the central regions, milk and meat breeds are found in most of the country, and in the steppe zone, meat and dairy. Since the second half of the nineties, in Russia have been taken measures aimed at raising livestock production, however, they will take a long time to implement. Although cattle in Russia are bred almost everywhere, there are areas that only breed dairy and dairy cattle, or only meat and dairy and meat. Sheep breeding has a distribution in the Caucasus, as well as in the steppes and semi-steppe regions of the Lower Volga region, in the Urals (in the Orenburg region). In the European part of the country, sheepskin-sheep sheep breeding of Romanov breed is widespread, while fine-fleeced sheep breeding is more common in the Caucasus, Western Siberia and the Volga region. Pig breeding is more widely represented in the Central Chernozem, Volga-Vyatka and North-Caucasian regions, the Volga region. The main feed for the development of poultry is fodder grain. Therefore, the breeding of poultry is developed in the most cereal (North Caucasus, Black Earth, Volga) and in the most populated (Central, North-Western) regions, close to large cities. Among the areas in which horse breeding is developed, it is necessary to mention the Northern Caucasus, the southern parts of the Urals and Siberia, and Altai with its mountainous regions, Buryatia and Yakutia. Camel breeding operates in arid steppes and semi-deserts (in Kalmykia, Astrakhan and Volgograd regions, Orenburg region).Reindeer husbandry is developed in the tundra and the northern taiga (Magadan and Arkhangelsk Oblast, the Komi Republic, Tyumen, in the Krasnoyarsk Territory). Livestock production in Russia in 2015 provided 47.7% of all agricultural products produced in value terms. [9] The volume of produced livestock products in all categories of farms (commercial sector, which includes agricultural organizations and peasant farms and non-profit sector - households) in Russia in 2015 in value terms is 2 400.4 billion rubles. In relation to 2014, the value of livestock products increased by 14.5% or by 303.8 billion rubles. The structure of meat production in Russia in 2015 is as follows: poultry meat accounted for 47.3%, for pork - 32.6%, for beef - 17.3%, for mutton and goat meat - 2.1%, for other types Meat - 0.8%.

Contributes to the devaluation of the ruble (which also affected the decline in imports), as well as a ban on the importation of meat from a number of countries, introduced in August 2014.

It should be noted that  Russia took the first place in the world for wheat exports in 2016(in the agricultural year from July 1, 2015 to June 30, 2016, Russian exports amounted to 24-25 million tons), displacing the United States and Canada. [17]  The worsening of relations between the countries came after the change of power in Ukraine and the annexation of the Crimea to the Russian Federation. Canada has repeatedly imposed sanctions against Russia, its organizations and individuals. In Canada's sanctions lists are over 200 Russian companies and organizations, as well as individuals. At present, relations between Canada and Russia show an obvious warming. The hopes that the arrival of Liberal Prime Minister Justin Trudeau to change the rhetoric towards Moscow were justified: the country declared its desire to establish lost contacts.[13] Canada puts economic benefits from cooperation with Russia above the interests of other external players, including the United States. Russia is one of the few countries in the world where there are substantial reserves of land for expanding agricultural production. In addition, there is a significant backlog of intensive development, since in many respects, the Russian Federation's agriculture is still significantly behind the countries with high-intensity farming (EU countries, Canada, USA). In the conditions of sustainable growth of the population of the Earth and increase in demand for food in the world, the role of agriculture in the country's economy will grow. In Russia, there is an import substitution of many goods, the import of which stopped due to sanctions - even those that were not previously produced in Russia. Thanks to the growth in the production of domestic agricultural products and the imposition of an embargo on a number of countries by Russia, in 2015 imports of food and agricultural raw materials declined. Our country should pay attention to the development of agriculture Canada. Canada is one of the world's top exporters of agricultural products. Especially important is the export of cereals, primarily wheat. Extensive spaces of fertile lands, a variety of climatic conditions favor the development of many branches of agriculture.

Canadian agriculture is one of the most productive in the world, with a rapid increase in labor productivity Our country should pay attention to the development of agriculture Canada. It is highly modernized, profitable, and provides products and jobs. At the same time, the share of exports is high, which is of course extremely important. Therefore, our country should technically modernize the agricultural sector. But in 2017, a slight decrease in the pace of modernization is predicted, due to the devaluation of the ruble and the increase in the cost of imported equipment.[18]  Another important direction for the development of agriculture is the subsidization of agricultural producers. The high level of subsidizing of agriculture attracts large investors to the agricultural market. The next step is to improve lending conditions. However, despite official statistics on the increase in lending, the average level of the country is declining - large priority projects are being financed, and it is still difficult for the small peasant farms (PFH) to obtain state support, and it is necessary to bureaucratize the system. Despite the growth in the industry's indicators, the salaries of agricultural workers remain low. Therefore, it is necessary to take measures in this direction too. At the same time, the country lags far behind other developed countries, especially Western European ones, in the application of fertilizers in agriculture.

References

 

 

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11.  Зальцман, В.А. Экономика и сельское хозяйство Канады /В.А. Зальцман// Нивы Зауралья: электрон. федеральный аграрный журн. 2015.№11 (133). – Режим доступа: http://svetich.info/publikacii/opyt-mirovogo-zemledelija/yekonomika-i-selskoe-hozjaistvo-kanady.html;

12.    Нерозникова, Екатерина. Канада меняет антироссийский курс [Электронный ресурс]-Режим доступа: https://www.vz.ru/world/2016/1/27/790782.html

13.  Природные ресурсы России. [Электронный ресурс]-Режим доступа:  http://xn----8sbiecm6bhdx8i.xn--p1ai/%D0%BF%D1%80%D0%B8%D1%80%D0%BE%D0%B4%D0%BD%D1%8B%D0%B5%20%D1%80%D0%B5%D1%81%D1%83%D1%80%D1%81%D1%8B%20%D0%A0%D0%BE%D1%81%D1%81%D0%B8%D0%B8.html;

14.  Растениеводство России. Экспертно-Аналитический центр Агробизнеса [Электронный ресурс]-Режим доступа: http://ab-centre.ru/page/rastenievodstvo-rossii;

15.  Растениеводство РФ. [Электронный ресурс]-Режим доступа: http://xn----8sbiecm6bhdx8i.xn--p1ai/%D1%80%D0%B0%D1%81%D1%82%D0%B5%D0%BD%D0%B8%D0%B5%D0%B2%D0%BE%D0%B4%D1%81%D1%82%D0%B2%D0%BE.html;

16.  Россия - (англ. Russia)- государство в Восточной Европе. [Электронный ресурс]-Режим доступа: http://www.wikiznanie.ru/ru-wz/index.php/%D0%A0%D0%BE%D1%81%D1%81%D0%B8%D1%8F;

17.  Сельское хозяйство России. [Электронный ресурс]-Режим доступа: https://ru.wikipedia.org/wiki/%D0%A1%D0%B5%D0%BB%D1%8C%D1%81%D0%BA%D0%BE%D0%B5_%D1%85%D0%BE%D0%B7%D1%8F%D0%B9%D1%81%D1%82%D0%B2%D0%BE_%D0%A0%D0%BE%D1%81%D1%81%D0%B8%D0%B8;

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