Activation of investment attraction in the dairy sub-complex of the agro-industrial complex on the basis of public-private partnership

Galina Demishkevich,Lyudmila Botasheva,Aleksey Petrov,P Vitaliy Vladimirovich

doi:10.1051/matecconf/201821208023

Abstract

Today, the dairy sub-complex of the Russian agro-industrial complex (AIC) faces the task of increasing volumes and production efficiency to ensure import substitution for milk and dairy products. A shortage of their own investment resources for the expansion or technical re-equipment of production is the problem of many milk producers. The solution can be found in attracting private investments into the industry using public-private partnership (PPP) mechanisms. The purpose of the study is to develop an organizational and economic mechanism to attract investment in the dairy sub-complex of the AIC on the basis of PPP. For this purpose, theoretical aspects of the use of the PPP mechanism in Russia and abroad, as well as experience in implementing investment projects in the second sphere of Russia’s dairy sub-complex, have been studied. The paper presents a scheme for attracting investments in agriculture (using the example of dairy cattle breeding) on the principles of PPP. The key participants in PPP are state authorities, agricultural commodity producers and private investors. The proposed scheme is aimed at reducing risks in the implementation of the project that can give it additional attractiveness. The calculation, executed on the basis of analysis of actual data of agricultural organizations in the Ulyanovsk region, shows a sufficient level of efficiency of investment in the dairy production.

Highlights

The dairy sub-complex of the agro-industrial complex (AIC) of Russia faces the problem of the expansion of production and import substitution of products that requires introduction of modern innovative technologies
This is especially true for the second sphere of the dairy subcomplex, that is, for dairy cattle breeding, since without the development of a raw material base, it is impossible to increase the production of dairy products
The interest of the state will be in raising tax revenues and creating new jobs in the future (Ushachev, 2014). If we apply this experience to the dairy sub-complex of the agro-industrial complex, a company or a consortium of companies that performs all the work on the fulfillment of the life cycle contract, i.e. the construction, production or supply of agricultural machinery products, its servicing can become a private partner in the implementation of innovative projects

Summary

Introduction

The dairy sub-complex of the AIC of Russia faces the problem of the expansion of production and import substitution of products that requires introduction of modern innovative technologies. Under this Law, it is possible to create PPP based on the organization of closed-end public mutual funds of real estate with trust management of the state property by private companies (Porovskaia, 2009).

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Conclusion