Naylya SadekovaPublished in:
Food Policy and Security
– Volume 3, Number 2 (April-June)

JEL classification: F52, O13, Q18

Keywords: food embargo, food industry, food safety, import substitution


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Abstract:

The present state of Russian food industry after adoption of food embargo by Russia has been analyzed in the article. Based on the performed statistical data analysis, the main development directions of the country’s agricultural sector have been identified. The prospects of import substitution in the food industry as one of the key factors to secure the food safety of Russia in the mid-term have been identified.

Highlights:

► food industry directly enables unaided survival of the state in the critical macroeconomic conditions
► food safety directly predetermines the possibility of self-sufficient functioning of the economic mechanism of the Russian Federation in the situation of ambiguous relationships with foreign states that are especially prominent at the present stage
► many Russian enterprises of the food industry have already reoriented themselves towards searching for new segments of the food market through generation and promotion of new product types
► the need of Russia and its regions for the import substitution policy logically appears when the growing import volume begins to threaten the economic safety of the territory
► the analysis of the growth rates in each sub-branch of the food industry for the last five years demonstrates general positive development dynamics in the industry
► the productivity improvement of food safety enterprises oriented towards the realization of food products is largely based on modernization of the functioning production establishments and introduction of new product types
► the current economic situation shows that, in spite of the considerable potential of import substitution, its implementation remains incomplete at the moment and is concentrated in the food sector mainly
► Russia with its wide arsenal of necessary resources – natural, material, financial, intellectual, diplomatic – has all what is necessary for a coordinated and complex solution of the problem of national food safety

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