Author: Yevgeny A. Petrov and Aleksandr N. Syomin

Abstract:

Non-systemic introduction of innovations in agriculture contributes to solution of specific problems, but does not support a highly needed growth of production efficiency and decreases investment appeal of the sector thus slowing down the process of diffusion and absorption of innovations in dairy cattle sector. With the rising prices of factors of production substantial consumption of all types of resources leads to increasing costs, escalating financial and economic problems in farms. This causes further decline in milk production due to, among other things, squeezing agricultural enterprises with dairy specialization out of business. Consequently, all levels – from regulatory bodies of agro-industrial complex to dairy plant and suppliers of resources – are interested in activating the process of introducing innovations in dairy cattle.

Keywords: innovation and investment activity; state program; agro-industrial complex; dairy cattle; dairy plants; investment costs.