Научная статья на тему 'THE STRATEGY OF ECONOMIC GROWTH ON THE EXAMPLE OF THE EXPORT OF AGRICULTURAL ORGANIC PRODUCTS'

THE STRATEGY OF ECONOMIC GROWTH ON THE EXAMPLE OF THE EXPORT OF AGRICULTURAL ORGANIC PRODUCTS Текст научной статьи по специальности «Сельское хозяйство, лесное хозяйство, рыбное хозяйство»

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Ключевые слова
ECONOMIC GROWTH / PRIORITY DIRECTIONS OF EXPORT / ORGANIC PRODUCTS / MARKETING / AGROMARKETING / MARKETING STRATEGY / ORGANIC PRODUCTS MARKETING / CONSUMER DEMAND

Аннотация научной статьи по сельскому хозяйству, лесному хозяйству, рыбному хозяйству, автор научной работы — Kundius V.A., Rushchitskaya O.A., Kruzhkova T.I., Ruchkin A.V.

Purpose. The article deals the issues of marketing research in strategy implementation of economic growth on example of agricultural organic products export to countries of South-East Asia and China. Methods. The authors use statistical data, comparative analysis, and forecasting to verify and confirm their conclusions. The author’s development is based on the method of mathematical modeling. Results. Export outlook of domestic production and consumer behavior were examined. The conclusion was made that the possibility of improvement of a feed quality of the country’s population specifically connected with a level of its life. Scientific novelty. This kind of possibility has become more real with the transition to import substitution and the development of export-oriented agriculture. Especially it is correct for organic agricultural production. It is based on innovative alternative land use and conservation of natural (primarily land) resources, demand for agricultural organic products in countries of South-East Asia and China. Practical significance. Authors also represents the results of marketing research the attitude of consumer behavior at the agricultural organic food products in Russia. These data may be useful for marketing research customers in countries of South-East Asia and China. The results obtained will also be of interest to domestic producers focused on the production of organically pure products, since in combination with the analysis of the consumption market, changes in the values of the population, it is possible to calculate and plan the capacity of the market in the future.

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Текст научной работы на тему «THE STRATEGY OF ECONOMIC GROWTH ON THE EXAMPLE OF THE EXPORT OF AGRICULTURAL ORGANIC PRODUCTS»

UDC 339.564:631.15 HAC Code 5.2.3 DOI: 10.32417/1997-4868-2022-228-13-42-49

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The strategy of economic growth on the example of the export of agricultural organic products

V. A. Kundius1, O. A. Rushchitskaya®, T. I. Kruzhkova2, A. V. Ruchkin2

1 Altai State Agrarian University; Barnaul, Russia

2 Ural State Agrarian University; Ekaterinburg, Russia

ME-mail: olgaru-arbitr@mail.ru

Abstract. Purpose. The article deals the issues of marketing research in strategy implementation of economic growth on example of agricultural organic products export to countries of South-East Asia and China. Methods. The authors use statistical data, comparative analysis, and forecasting to verify and confirm their conclusions. The author's development is based on the method of mathematical modeling. Results. Export outlook of domestic production and consumer behavior were examined. The conclusion was made that the possibility of improvement of a feed quality of the country's population specifically connected with a level of its life. Scientific novelty. This kind of possibility has become more real with the transition to import substitution and the development of export-oriented agriculture. Especially it is correct for organic agricultural production. It is based on innovative alternative land use and conservation of natural (primarily land) resources, demand for agricultural organic products in countries of South-East Asia and China. Practical significance. Authors also represents the results of marketing research the attitude of consumer behavior at the agricultural organic food products in Russia. These data may be useful for marketing research customers in countries of South-East Asia and China. The results obtained will also be of interest to domestic producers focused on the production of organically pure products, since in combination with the analysis of the consumption market, changes in the values of the population, it is possible to calculate and plan the capacity of the market in the future.

Keywords: economic growth; priority directions of export; organic products; marketing; agromarketing; market-

^ ing strategy; organic products marketing; consumer demand.

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• For citation: Kundius V. A., Rushchitskaya O. A., Kruzhkova T. I., Ruchkin A. V. The strategy of economic growth on the example of the export of agricultural organic products // Agrarian Bulletin of the Urals. 2022.

3 Special issue "Economy". Pp. 42-49. DOI: 10.32417/1997-4868-2022-228-13-42-49.

P¿ Date ofpaper submission: 28.10.2022, date of review: 17.11.2022, date of acceptance: 25.11.2022.

i-1 Introduction USSR countries. So, the fourth stage of development is

> Economic growth in global development trends created with expected duration of 40-50 years, which

is characterized by large cycles of conjuncture, justi- will be characterized, as well as the first stage, by the

fied in the studies of the well-known Russian scientist predominance of food exports over food imports. The

N. D. Kondratyev [6]. As a result of the long process transition to this stage took place for the former Soviet

analysis of interaction between the Russian agricultural republics in 2009-2012 years and for the Russian Fed-

sector and the world food market during the XIX - eration in 2015 [4].

® early XXI centuries modern scientists identified three That is why the Russian Federation export policy as

¡^ major periods of such interaction. The total duration a marketing strategy has the purpose to increase the ex-

of mentioned interaction is about 40-50 years, the be- port of agricultural products and food in the whole, and

ginning of which coincides with the beginning of the organic products particularly. The forecast substantia-

current phase of the next cycle of N. D. Kondratyev. tion of priority directions of export development deter-

¿¿ Ideas of N. D. Kondrayev are supported by modern mines the structural orientation of agricultural and food

research. For example, the results of the research of products producers, including organic production. It is

Yu. F. Chistyakov (from the Ural branch of the Russian also a strategic factor that determines the further state

Academy of Sciences) are demonstrated that nowadays of agricultural and food treatment sectors of the econo-

the fourth stage of development. This stage is expressed my. The revealing of increasing production vector and

43

§ in Russian foreign food trade as well as in the former sales volume at the regional, national and international m levels is too much important.

Table 1

Export of agricultural crops from the Altai Territory (for January - October 2018) [5]

The name of the crops Exports in January -October, 2018, ton To January -October 2017 Directions

Grain crops - total 96 771.1 4.6 times Mongolia China Kazakhstan and other countries

wheat 55 360.9 6.8 times Latvia - 58.8 % Mongolia - 33.8 % Kazakhstan - 5.5 %o

buckwheat 30 975.9 3.4 times China - 39.7 % Lithuania - 32.7 % Mongolia -12.9 % Japan - 6.1 %

oats 6 587.0 2.6 times Mongolia - 99.0 %

rye 622.7 2563 times Latvia - 96.1 % Mongolia - 3.7 %

barley 2 144.0 5.7 times Iran - 63.0 % Kazakhstan - 29.7 %o Irak - 5.4 %

Oil plants - total 51 748.3 1.4 times China Kazakhstan Belarus and other countries

sunflower 10 893.5 3.3 times Kazakhstan - 35.2 % Belarus - 31.1 %o Tajikistan -15.3 %o China -10.2 %

soya 240.4 1.1 times Kazakhstan - 58.4 %o China - 41.6 %

rapes 26 556.3 2.7 times China - 96.0 % Mongolia - 3.9 %

oil flax 13 629.7 58.7 % China - 89.8 % Poland - 8.0 % Mongolia -1.9 %

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However, in the literature available us we can not find surveys about marketing research in strategy implementation of economic growth on example of agricultural organic products export, especially concerned countries of South-East Asia and China [15].

That is why the goal of our research is to conduct marketing research on issues, concerned strategy implementation of economic growth on example of agricultural organic products export countries of SouthEast Asia and China.

Methods

The authors used monographic description, statistical and comparative analysis. It was proposed to use the developed economic and mathematical model. Author applied also dynamic analysis of different indicators [10]. Also with the help of questionnaires and expert assessments, the behavior of the end users in the food market of environmentally friendly products based on the value approach is studied. The methodical tools are described in our early research [9; 1; 3; 15].

Results

Recent research has shown that the main factors influencing the growth of food consumption and the conjuncture of the world food market in the strategic perspective are the following ones:

- the world population is expected to grow to 8.1 billion by 2030. At the same time, the main population growth will be provided by the countries of Africa and South-East Asia;

- due to the increase in the level of well-being, there are changes in the structure of consumption. They lead to an increase in demand for high-quality food products around the world, especially in the rapidly developing countries of South-East Asia [8].

The WFO UN predicts that food consumption per capita will increase, especially in countries of SouthEast Asia (Figure 1).

In this connection, the development of multilateral trade and economic cooperation of the Shanghai cooperation organization - SCO), which includes China, Russia, Kazakhstan, Tajikistan, Kyrgyzstan, Uzbekistan, India and Pakistan, is promising. In recent years, this organization is expected to create a free trade zone, as well as infrastructure for trade and investment.

It is economically expedient to attract investments to the regions of Siberia and the Far East in order to build [5; 12] joint processing agro-industrial enterprises, particularly, in the Altai territory of Russia.

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kcal/day 3,500

3,300

3,100

2,900

2,700

2,500

2,300

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2,100 1,900 1,700 1,500

•World Near East / North Africa ■South Asia

•Sub-Saharan Africa ■ Latin America and the Caribbean ■East Asia

1969/1971 1979/1981 1989/1991 1990/1992 2005/2007 2015

Fig. 1. Food consumption per capita (kcal/person/day) [13]

2030

2050 year

The Altai territory belongs to the export-oriented regions. The share of exports in the total structure of foreign trade turnover is 69 %, and the balance of foreign trade balance was formed at the level of 372 million dollars (exports exceed imports to 2.3 times). In value terms, the volume of exports in 2017 amounted to 665.3 million dollars (Figure 1).

In 2018, agricultural products were exported to the SCO countries (Table 1).

China accounts for a large share of exports. The trend of growth in the volume of exported products to China is becoming stable character [12].

Export trade is actively developing in the regions of the Russian Federation producing agricultural products. Thus, the Export Center has been established in the Altai Territory, with which more than 170 regional companies and enterprises engaged in foreign economic activity are currently cooperating with. In 2017, the Center provided about 500 services to business entities. Altai companies participated in international exhibitions in China, Turkey, Kazakhstan, Indonesia, Uzbekistan and business missions to Iran and Mongolia [5].

In particular, services for to bringing products in line with the requirements necessary for the export of goods and ensuring the protection of intellectual property abroad; provision of subsidies to reimburse part of the costs associated with participation in interregional and international exhibition and fair events [5] (Figure 2).

The region has developed a regional project "Export of agricultural products". Due this project it is planned the following kinds of activities:

- to achieve the export's volume of agricultural products (in value terms) in the amount of 501 million

dollars by the end of 2024 through the creation of a new commodity mass (including high value added);

- to create export-oriented commodity-carrying infrastructure;

- to eliminate trade barriers (tariff and non-tariff);

- to ensure access of agricultural products to target markets;

- create a system of promotion and positioning of agricultural production [13].

The strategy of increasing export of agricultural products and food causes an increase in the production of organic, farm products, which are currently in demand in the domestic and global markets [8]. In the ecological rating of Russian regions Altai Territory takes the 3rd place and has positive environmental performance.

To our mind, the modern economic paradigm of market economy development is based on the theoretical concepts of the organic products marketing [1; 2; 9]. As we noted in our earlier researches, organic products marketing represents the activity which carried out with the minimal damage for the surrounding environment and has been directed on the interest's coordination of the firms and consumers in the organic food markets, i. e. it is represented a version of ecological and organic marketing [1; 2; 9].

More over, agriculture and food seems to be a kind of the "marker of cultural identity" of modern society, in which more and more people want to lead a healthy lifestyle and consume environmentally friendly products.

In other words, organic products around of the world are becoming more and more popular among many segments of the population. That is why has ap-

peared and is actively developing a new segment of the traditional food market. It is the market of agricultural organic products and food.

So, in 2017 year the volume of this market was amounted to about $ 80-85 billion, and over the next five years, its annual growth is expected by at least 20 %. In the Russian Federation (in other things being equal), the development of internal and external market infrastructure also contributes to the formation and growth of this market by an average of 30-40 % a year. In particular, according to the data of FAS USDA [13], the Russian market of organic food products in 2015 amounted to $ 128 million, and by 2016 to about $ 225 million.

The possibility of the population quality of nutrition improving directly related to the level of its life. It has become more real with the shift to import substitution, aimed at increasing food self-sufficiency, the development of organic agricultural production. It is based on innovative alternative land use and conservation of natural (primarily land) resources.

The most important role in solving this problem is assigned to ecological agriculture, which is able, under appropriate institutional and economic conditions, to produce organic agro-production [7; 9-12].

As noted in the study of the UNO agri-food sector [13], since 2000, the area allocated for organic land worldwide has increased by 4 times and amounted to about 50 million hectares, or 1 % of the world's agricultural land area by 2016; more than two million producers of organic food products have been certified in 170 countries, of which more than % are represented by developing countries.

The most important feature of the "food market of agricultural organic products" is the higher value added in the production of food agricultural products, hence the higher (compared to other food groups) price. It follows that the problem of market equilibrium in the food market of agricultural organic products is complicated

by the discrepancy between the costs of producers, prices and the solvency (level of income) of the majority of the population. It is objectively restrained by the organization of the food market of agricultural organic products and transfers its production to the category of elite goods.

On the basis demand and supply study at the food market of agricultural organic products, we have identified the gap in the growth dynamics of real incomes of consumers from the growth of prices for this type of product. Also we discovered the outstripping growth in demand for it compared to the opportunities (solvency) of consumers of food agricultural organic products.

In this link we have to stress, that the problem of equilibrium in the food market of agricultural organic products is presented as a system model of partial equilibrium (the model of K. Vixell - G. Myrdal) [2], i. e. temporarily mutually balancing factors (demand, supply, costs, price, quality, income). Taking into consideration the peculiarities of production and sale of food agricultural organic products, we put forward and justify the thesis of the need for more consistent and socially oriented state regulation of the food market of agricultural products

Using various criteria, it is proved that the main types and types of agricultural food markets are:

a) by the criterion of market power - markets of the producer, consumer, intermediary, seller;

b) by territorial criterion - local, regional, regional, global;

c) at the scale of the turnover wholesale and retail markets;

d) by means of a transaction - public procurement, tenders, stock exchange transactions;

e) by the nature of competition - non-competitive (monopolized) market, markets of oligopoly (imperfect competition) and poly-poly (perfect or free) competition;

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' Mineral products

Foodproducts and agricultural raw materials

I Wood,pulp andpaperproducts I Other goods

Machinery, equipment and transport means

Fig. 2. Commodity structure of the Altai territory export, 2017 [5]

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f) by the object of purchase and sale - bread, milk, vegetables and fruits, meat products, etc.

Taking into consideration the heterogeneity of consumer expectations and the dispersion of prices for food agricultural organic products, the multifunctional essence of the food market for agricultural organic products is also revealed. On the one hand, it is aimed at the implementation of the principle of social security and, therefore, is obliged to meet the maximum possible demand of the population in agricultural food organic products, on the other hand, and the food market of agricultural organic products is aimed at maximizing profits, which determines the high costs and prices of these products. The output is seen in development and introduction of a system of state regulation of production costs (inflation of costs) in the food market of agricultural organic products in order to democratize this market segment and expand the practice of production and marketing of this type of product. Within the framework of this dichotomy, all other functions of the food market of agricultural organic products (information, intermediary, price-forming, control-monitoring and sanitizing) turn out to be a realizable ratio of two main determinants mentioned above.

The consumer market of organic agricultural products in Russia is represented by two main types of products:

1) those produced in the Russian Federation$

2) those purchased from abroad.

The accelerated formation of the food market of agricultural organic products in Russia is constrained by a number of factors:

a) a set of prohibitive requirements;

b) the absence of an objective set of standards for the production of biological products and the presence of a large number of controlled parameters used in the passage of products on the market;

c) high prices for organic products;

d) lack of a unified certification system;

e) low awareness of consumers of organic food products.

Also we applied and revealed the dynamic analysis of indicators . So, the study of consumer behavior in the market of organic food products on the basis of value approach allowed to obtain a detailed socio-economic and psychological portraits of the consumer [9; 10]. Among the list of factors influencing the purchase of food products, the key attributes of importance are highlighted, as well as it is shown that consumers appreciate the "price-quality" ratio more highly. This is also confirmed by the results of determining the price sensitivity of the consumer by PSM (price sensitive measurement). It is noted in case with the monopolistic and oligopolistic model at the market that there is a non-price elasticity of supply and demand. At the same time, it is established the following patterns:

- the demand for organic food products depends on household income;

- the income depends on the level of wages;

- the wages depends on profitability of the organization;

- the profitability of the organization depends on the level of state support, which is associated with the capabilities of the Federal and regional budgets.

The combination of mentioned above indicators has a multi-level impact on the pricing process.

Our observations show that the domestic market of agricultural and organic food products is mainly represented by the following channels:

- online stores that sell natural farm and village products;

- local markets (meat and dairy products, greens, vegetables and fruits);

- mini-retail stores and small departments at the supermarkets, which are presented of the so-called "environmental shelf" for different organic products of domestic and foreign production (spices, tea, coffee, cereals);

- a chain of cafes of healthy food (Moscow, Saint-Petersburg, Ekaterinburg, Novosibirsk, Vladivostok), etc.

One of the best channels for the distribution of agricultural food products is the state cooperative wholesale and retail system, which best meets the interests of small and medium-sized farms. Environmentally friendly agricultural products are produced primarily at them.

In order to maintain the rhythm of supplies to the cooperative wholesale food markets of agricultural organic products, it is advisable to make rural marketing cooperatives, equipping them with all the necessary infrastructure. To minimize transport costs for the delivery of organic agricultural products from private farms to wholesale food markets, it is proposed to use the developed economic and mathematical model. This model can be represented as follows [10].

Obiective function: n m D

Z= X X Z-^a-^/a , (1)

¡=1 j=i ci=i

where Z - the total minimum cost of delivery of agricultural organic food products (AOFPs) to the wholesale food market (WFM), RUB;

C - the cost of transportation of the unit of d-type of AOFP by '-mode of transport from the /-type of manufacturer (or cooperative), RUB/t;

X - volume of transportation of d-type of organic product by '-mode transport from the /-type of producer, ton, kg, pcs.;

i - number of manufacturers of AOFPs (i = 1, 2, 3 ... n);

' - type of vehicles engaged in the carriage (' = 1, 2, 3 ... m);

d - type of OFP supplied to WFM (d = 1, 2, 3 ... D).

Under constraints:

z *z

j='

=Xijd = Qdj,

(2)

where Q - the volume of the d-type of agricultural organic food products by the ./'-type of transport from all /'-type of its producers (or marketing cooperatives) should correspond to the capacity of the wholesale food market;

Y^Tj-rXjd — M, (3)

where X - the volume of transportation of the d-type of agricultural organic food products by the /-type of transport from the /-agricultural producer should not exceed its resource capabilities;

(4)

Z m i x z i =Xijd < M, ¿—¡j=1 ¿—¡d=l J '

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where X - the volume of transportation of agricultural organic food products in the y'-mode of transport from all farms of the territory (or cooperatives) to ODA should not exceed the total capacity in the j modes of transport (d); D

^ id ^ Qdi'

i=1 d=1 (5)

where Q - the volume of transportation of the d-type of agricultural and organic food products should correspond to the capacity of the object of its application in the wholesale food market;

Xljd > 0, (6)

where X - the condition of non-negativeness of variables.

The restrictions should be supplemented by the correspondence of actual and normative time spent on the delivery of agricultural and organic food products to the locations of wholesale food markets and especially to the retail trade in the cities. Delivery must be made at the required time, which is associated with the preservation of the quality of agricultural products transported. In this regard, the delivery of agricultural organic food products to the wholesale food market is advisable to perform, as in European countries, at night, and to the shops - in the morning early to avoid traffic jams. As a rule, they have a high saturation of car gases, which violates the environmental friendliness of products and shortens the shelf life [10; 2].

It is established that the price balance in the market of agricultural organic food products is limited by the features of its specific model. Therefore, it is more realistic to develop theoretical concepts of achieving the equilibrium state of this market only at a short time interval, as well as in the conditions of a competitive model, which at the moment does not correspond to the realities [11].

Also we studied consumer behavior in the market of agricultural organic food products on the basis of value-based approach allowed to obtain a detailed socio-economic and psychological portraits of the consumer. It is revealed that when choosing the purchase

and agricultural organic food products, the consumer is guided, first of all, by the following components of the value system, in descending order:

1) functional value;

2) representative value;

3) relative value [9, 1; 3].

Among the list of factors affecting the purchase of food products, the key attributes of importance, in descending order are highlighted as the following:

- organoleptic properties (taste, smell, color, consistency of the product);

- shelf life;

- naturalness, environmental cleanliness;

- nutritional value, including the presence of dietary supplements;

- product brand;

- popularity of a product.

Discussion and Conclusion

The article deals the issues of marketing research in strategy implementation of economic growth on example of agricultural organic products export to countries of South-East Asia and China. Export outlook of domestic production and consumer behavior were examined. The conclusion was made that the possibility of improvement of a feed quality of the country's population specifically connected with a level of its life. This kind of possibility has become more real with the transition to import substitution and the development of export-oriented agriculture. Especially it is correct for organic agricultural production. It is based on innovative alternative land use and conservation of natural (primarily land) resources, demand for agricultural organic products in countries of South-East Asia and China.

In the process of studying the attitude of consumers to agricultural organic food products revealed that the most important properties for the consumer are the following: organoleptic characteristics; environmental cleanliness, naturalness (including freshness and shelf life); brand of products; food (including bio-logical and energy) value; aesthetic characteristics of products (design and convenience of packaging); the ratio of price and quality of products; volume or weight of the unit of packaging. It is also important that the share of expenditures on organic agricultural food products in the structure of family budget expenditures on food varies depending on the financial status and gender. With the increase in the level of income, the share of family budget expenditures on healthy food also increases.

The strategy of increasing the production and export of organic agricultural products and food is justified by the resource capabilities and environmental potential of the regions of Russia, consumer preferences, demand in the domestic and global markets.

We have to stress, that our research is not finished and will be continued. More over, we are sure that data which we have got about Russian consumers at the

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organic food markets may be useful for countries of "The concept of formation, development and function-

§ 1. Dadaev Ya. E. Tendentsii razvitiya rynka organicheskoy produktsii [Trends in the development of the or-g ganic products market] // Journal of Applied Research. 2021. No. 6-8. Pp. 731-735. DOI: 10.47576/2712-O 7516_2021_6_8_731. (In Russian.)

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South-East Asia and China.

Acknowledgements The study was conducted with financial support Ministry of Agriculture of the Russian Federation, topic

ing of the food market of agricultural organic products (on the example of the Ural region)".

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References

Authors' information:

Valentina A. Kundius1, doctor of economic sciences, professor, head of the agrarian complex department, honored scientist of the Russian Federation, head of the department of agricultural economics, ORCID 0000-0002-9624-0572, AuthorlD 361105, kundi-usv@mail.ru

Olga A. Rushchitskaya2, doctor of economic sciences, associate professor, director of the Institute of Economic, Finance and Management, ORCID 0000-0002-6854-5723, AuthorlD 518696, olgaru-arbitr@mail.ru Tatyana I. Kruzhkova2, candidate of historical sciences, associate professor, associate professor of the department of management and economic theory, ORCID 0000-0002-9564-7928, AuthorID 697760; + 7 912 206-64-22, rustale@yandex.ru

Aleksey V Ruchkin2, candidate of sociological sciences, associate professor, head of the department of philosophy, ORCID 0000-0002-6981-3080, AuthorID 615361; +7 343 221-41-45, alexeyruchkin87@gmail.com

1 Altai State Agrarian University; Barnaul, Russia

2 Ural State Agrarian University; Ekaterinburg, Russia

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