Situation in the field of accounting and registration of farms in Russia is complicated

17 october 2014 | IA REGNUM

Expert of the Analytical Center Elena Razumova is assessing the situation in the field of accounting and registration of farms in Russia as being complicated.

Elena Razumova
Elena Razumova
Department for Expert Analytics

“Actually, we do not have conditions for classifying the farms by different types of agricultural producers according to the criteria of production output and available resources, - noted Ms. Razumova in an interview to the REGNUM news agency. – Everyone who has registered under thistitle is called a farmer in Russia.”

According to the data presented by Ms. Razumova in 2013 in Russia there were 120 000 peasant farms enterprises, which were accounted for 53% from total number of legal entities engaged in the agricultural production. However, the share of such entities in the total production output was accounted for 9,8% by the end of 2013. “Small farms are not efficient for producing the key agricultural products, such as cereals, milk, pork, poultry and beef”, said Ms. Razumova. – The reason for this are large distances, the presence of huge industrial customers who need large volumes of standardized products (e.g. qualitative characteristics of milk), and high share of centralized retailers. However, such farms play an important role in smaller sectors, such as apiculture, rabbit breeding, fur production, freshwater aquaculture”. She believes that such undertakings can provide specialized products for the restaurant sector of the country.

The expert also considers that the main problem of Russian farms’ development resides in distribution channels and high cost of the final product. At the present moment the state directs its efforts to support the logistic infrastructure of all agricultural sector.