Import substitution and its role in food security and agricultural development in the region

Abstract

The article presents the analysis of the security of the food market during the period 2010-2015, with an account of modern conditions of economy of the Russian Federation. The volume of production (manufacturing) of major food products in Russia in the period 2010-2015 indicate the increase in domestic production of food products such as meat products, fish and fish products, frozen fruits and vegetables, milk and dairy products. Key categories of micro-economic analysis is supply and demand in selected markets. On the basis of information about the diets of the population per capita in the region and Russia as a whole, revealed that the consumption of meat and meat products, eggs complies with the standards. The problem of formation of demand for food products is relevant due to the fact that consumption and demand for food in large parts of the population formed at an insufficient level due to low incomes. In examining the share of imported products in the food market of the Russian Federation, it was identified that there is a dependency on the following inventory: beef (import share of 57.3%), animal oil (34.4 per cent) and cheese (37.3 per cent). In the conditions of modern development of the economy another important factor is the state support of import substitution advocating a kind of incentive for the development and protection of own food production. Assessment of the dynamics of foreign trade turnover of trade in the region helps to identify trends in the development of relations in the region. The analysis of the index of foreign trade of the Urals Federal district in the period 2012-2016 has undergone minor changes, this fact is due to the introduction of foreign sanctions. Import substitution is one of the main factors contributing to implement large-scale and deep modernization of the domestic agricultural sector, causing the use of leading technology.