Evaluation of effectiveness of subsidies in dairy cattle breeding in Krasnoyarsk Territory

Abstract

Tendencies of developing the dairy cattle industry in Krasnoyarsk Territory in 2008-2014 were revealed. It was found that the reduction in dairy cattle herds in the region for the period above was greatly influenced by the reduced number of agricultural organizations. The industry has features making it different from other sectors that require a special approach to it from agricultural producers. An analysis revealed the growth in milk production performance of the herds by 24.8%. With that, a determining factor in the development of dairy cattle breeding in the region is the government support. There are named agricultural organizations, being leaders in producing milk above 6000 kg per head, which are continuously supported by the government. Budget financing of the sector was revealed to be mainly direct subsidies. The dynamics of government support for agricultural organizations of Krasnoyarsk Territory was determined. For 2008-2014, financial allocations to the dairy industry were observed to reduce. The effectiveness of subsidizing was evaluated based on a suggested indicator defined as a ratio of the increase in milk production performance of a herd to the amount of subsidies providing this increase. It has been concluded that dairy cattle breeding remains ineffective due to imperfection of measures undertaken by the government. The objective reasons distorting evaluation of the effectiveness of subsidies are identified.