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Directions and Mechanisms of Recovery of Russian Flax Production Subcomplex

Abstract

This study is dedicated to substantiating and finding forms of cooperation and integration of the enterprises of flax production subcomplex of the Russian agroindustrial complex. Aim. This study aims to substantiate the necessity of an integrated approach to manage the enterprises of the flax production subcomplex of the Russian agroindustrial complex. Tasks. This study analyzes the current state and development trends of the flax production subcomplex of the Russian agroindustrial complex. It does so by analyzing the technological chain of flax product movement between different enterprises during production, processing, and sale; it then proposes possible organizational forms of integration and cooperation and determines government support and development measures. Methods. This study applies complex analysis and synthesis to the functioning of enterprises in different fields of the flax production subcomplex of the Russian agroindustrial complex. Results. The production of flax and flax goods in Russia is currently on the decline, resulting in degradation of rural areas. Russia has gradually lost its status as a global leader in flax export. Since the primary product of common flax (flax straw) in its pure unprocessed form has no practical application, its transportation is costly due to large volumes and low specific weight. The flax production subcomplex requires special government regulation under the authority of a single federal center, a single coordinated policy, and cooperation and integration. Flax production and processing requires government support in terms of tax and loan policy measures. Considering the need for a coordinated technological chain of flax production, integration and cooperation in agricultural consumer cooperatives, private flax processing enterprises (including holdings), cooperative-public partnerships, private-public partnerships, and flax clusters is required. Conclusion. A complex approach to the development of flax production and flax processing would make it possible for Russia not only to regain leadership in the global market but also to improve employment and income levels in rural areas.

About the Authors

Vasiliy S. Krylov
All-Russian Research Institute of Rural Economics
Russian Federation


Vladimir A. Bayunov
All-Russian Research Institute of Rural Economics
Russian Federation


Elena V. Khudyakova
Russian State Agrarian University - Moscow Timiryazev Agricultural Academy
Russian Federation


References

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Review

For citations:


Krylov V.S., Bayunov V.A., Khudyakova E.V. Directions and Mechanisms of Recovery of Russian Flax Production Subcomplex. Economics and Management. 2017;(7):19-24. (In Russ.)

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ISSN 1998-1627 (Print)