ECONOMIC PERFORMANCE ASSESSMENT FOR AGRICULTURAL MARKET IN A REGION: EVIDENCE FROM RUSSIA
ECONOMIC PERFORMANCE ASSESSMENT FOR AGRICULTURAL MARKET IN A REGION: EVIDENCE FROM RUSSIA

Summary/Abstract: In recent years, Russian agricultural market has undergone rather importantchanges. Nowadays, there is a kind of euphoria concerning agricultural market. State supportis planned, including significant investments, with the aim to stimulate its development. Still,literature analysis shows that efforts are supposed to concentrate mainly on the sphere ofproduction. There is clear lack of attention to the level of technologies and equipment use,both in manufacturing and in turnover, i.e. in the post-harvest handling, long-term andoperational storing of agricultural products, as well as in processing, product delivery tocustomers, preferably using highly specialized transportation, and in consumption wastedisposal. This attention is necessary, otherwise the achieved production results will bedestroyed due to low-tech turnover level, and the relationship between production andconsumption will not give the expected results of the agricultural products marketfunctioning. These facts has direct impact on the subjects operating in agricultural sector.Especially, on their economic performance, bankrupt or financial health as a whole. Economicperformance of agricultural sector can lead to more efficient management of subject operatingin this sector. In addition, it can bring more convenient prices of agricultural products forcustomers. In this article a hypothesis is discussed that the main issue should be notproductivity growth or increase in production volume, but the level of technologies inagricultural production and bringing agricultural products to consumers, at all stages of theproduction-consumption relationship. It is therefore proposed to assess the market economicperformance from the perspective of technological stages (tenors of technology) on which thecreation and implementation of the product takes place. In this context, the expediency of theapproach to the economic performance assessment for the agricultural market in a region issubstantiated.

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