Global Challenges and Barriers to Sustainable Economic Growth in the Agribusiness Sector

Abstract

The paper presents four main megatrends of global economic development: 1) changes in value chains, 2) development of a new food system model, 3) redistribution of value chains in the agribusiness sector, 4) growing influence of large companies and individual countries on the global agrifood system. The aim of the paper is to investigate the macroeconomic global and national challenges of agro-industrial development that affect the sustainable development of the sector. Based on these megatrends and using a dialectical method, the authors have considered the main global and national challenges in agricultural development. They highlighted the following: demographic growth and hunger; resource scarcity and the crisis of the AIS 3.0 model; ethical risks and limitations; natural and climatic changes; recycling, recycling and valorisation of waste; political instability; challenges of innovative development. It is shown that identification of the main challenges facing the development of domestic agribusiness sector is the primary basis for the formulation of strategic development objectives of the agrarian sector. The global challenges identified in the paper represent the basis for the development of economic policy in the agribusiness sector, including the Russian agrifood policy, the development of quality formal and informal rules and institutions that support the economic growth of the agribusiness sector, and also allow risk-oriented approaching to agricultural development in different territories.