Competitiveness of Agricultural Products in the Eurasian Economic Union

_ Vlada Maslova, Federal Research Center of Agrarian Economy and Social Development of Rural Areas—All-Russian Research Institute of Agricultural Economics; Natalya Zaruk, Russian State Agrarian University-Moscow Timiryazev Agricultural Academy; Clemens Fuchs, aculty Agriculture and Food Sciences, University of Applied Sciences Neubrandenburg;  Mikhail Avdeev, Federal Research Center of Agrarian Economy and Social Development of Rural Areas—All-Russian Research Institute of Agricultural Economics. Neubrandenburg,  21 March 2019.

One of the main challenges facing the economies of EAEU countries is increasing the competitiveness of products. This issue has become particularly relevant in the context of increasing globalization and cross-country competition. We focused on the identification and assessment of the main factors that influence the competitiveness of the agricultural products in the EAEU countries using a factor analysis of the competitiveness of agricultural products. As a research tool, we used the methodology for determining the integral index of competitiveness for various types of agricultural products for the EAEU countries, as well as correlation regression analysis based on the econometric software package EViews 9.5 (IHS Global Inc., Irvine, CA, USA)

The most important segment of the EAEU agricultural market is the grain market. The EAEU share in the world production of grain was 6.3% in 2017. The EAEU countries produce 13.5% and 17.5% of the world production of wheat and barley, respectively in 2017. The share of EAEU countries in the world trade of wheat and barley was about 20% and 14.3%, respectively in 2017. Therefore, the grain market was chosen as the object of the factor analysis of competitiveness as a competitive market. In this research, we extensively studied the types of agricultural products such as wheat, barley, and corn.

In general, the production of grain in Russia and Kazakhstan, both in the domestic market of the EAEU and in the global market, is competitive. The main factors increasing competitiveness in 2014–2016 were the decrease in domestic producer prices and the growth in production volumes. These two aspects will allow the EAEU countries to gain a larger share in the international grain and processed products markets in the future.

The export of Russian grain is forecasted to reach 40 million tons by 2020. In Kazakhstan, in 2020, grain exports are expected to be 6 million tons. The share of Belarus in world grain exports is insignificant, but by 2020, grain production will increase up to 10 million tons, which will also increase its export opportunities.

To further increase the production and competitiveness levels for grain and grain processing products in EAEU countries, it is necessary to develop and introduce quality seed, implement more intensive use of new low-cost technologies, improve the price relationships in the grain market, provide state support for the grain subcomplex, harmonize domestic requirements for quality grain with those of foreign grains, expand flour exports and products of deep grain processing, develop internal and external infrastructure, and improve the transport and logistics system of the grain market in the long-term. In conclusion, a single sustainable strategy must be created and implemented for the development of grain exports in the EAEU.

Source: https://www.mdpi.com/2077-0472/9/3/61/htm

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