Author: Aleksandr V. Uvarov

Abstract:

The analysis of added value in the main parts of food chain (agricultural producers, processors, retailers) revealed that the most significant value is added by retailers whereas the least one is generated by agricultural producers that are believed to be the guarantors of food security. The paper looks at profitability, labour and capital intensity in agriculture and processing industries and compares expenditures on investment activities across the food chain. It is concluded that the system of state support of agriculture in Russia is outdated and does not bring positive results. The comparison of revenues in food chains in Russia, the USA, Canada, Japan and a number of European countries indicated that the Russian food chain earns a far more substantial revenue in relation to the income level of the population. To ensure food security the author suggests that government authorities should redistribute financial flows within the food chain instead of providing direct budget support to farmers.

Keywords: food security; agricultural producer; food company; retailer; gross added value; state support; financial flow.

For citation:

Uvarov A. V. Sovershenstvovanie mer gosudarstvennoy podderzhki sel'skogo khozyaystva na osnove ispol'zovaniya pokazateley dobavlennoy stoimosti [Improvement of Government Support of Agriculture Using the Indicators of Added Value]. Izvestiya Uralskogo gosudarstvennogo ekonomicheskogo universiteta – Journal of the Ural State University of Economics, 2016, no. 1 (63), pp. 107–115.