An alternative model for the development of organic agriculture: contract production
Abstract. The study is devoted to the search for an alternative model for the transition to the dynamic development of the production of organic agricultural products. Problem under consideration is a predominantly inertial and spatially heterogeneous development of organic agriculture in Russia. In this regard, there is a need to search for an alternative model for the development of the sector taking into account the balance of interests of participants in the value chains. The purpose of the study is the search for forms of management and ways of their interaction allowing to move to the dynamic development of organic agriculture. To achieve the goal, we analyzed (1) the experience of state support for organic agriculture in the developed and developing countries, (2) the data set of the Research Institute of Organic Agriculture (FiBL), the union of organic farming. The study is based on a synthesis of knowledge about the support of organic agriculture and the most popular models of export-oriented agricultural development. Scientific abstraction is applied in determining the main elements of the organic production development model. The results of the study showed that contract farming is an acceptable form of integration of an agricultural holding with small forms of farming, which should be united in communities. Such communities contribute to strengthening negotiating positions and defending their own interests within the framework of the proposed model. A sufficient condition for the implementation of the model at the initial stage is a favorable institutional environment that can be created by government bodies. At the same time, state support measures can be aimed at stimulating the interaction of economic entities by reducing export barriers to organic food and protecting the interests of small businesses.
Keywords: agro-industrial holding, state, integration, organic agriculture, contract, export Highlights:
♦ possible advantages and disadvantages of the development of organic agriculture based on the contract production are identified;
♦ an alternative model for the development of organic agriculture is presented uniting business entities;
♦ recommendations were given on the development of contract production of organic products, which could be used by government bodies.
Denis G. Galkin - Altai State Agricultural University, Barnaul, Russia