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Problems and Opportunities for the Development of Organic Agriculture in Siberia

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Studies on Russian Economic Development Aims and scope

Abstract

The article discusses the current limitations in the development of organic farming in Russia. The economic efficiency of the transition to organic technology is analyzed (on the example of spring wheat production in Novosibirsk oblast). It has been shown that in terms of net present value, organic farming is more effective than traditional farming over a 7–10 year horizon. At the same time, various risks significantly reduce the attractiveness of organic farming.

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Notes

  1. https://www.bloomberg.com/press-releases/2022-04-20/orga-nic-food-and-beverages-market-to-be-worth-564-22-billion-by-2030-grand-view-research-inc.

  2. The main contribution to the expansion of agricultural land for organic production in the world was made by the increase in pasture areas, mainly in Australia and Latin America. At the same time, the global area of organic arable land expanded from 3.6 million ha in 2004 to 13.1 million ha in 2020, accounting for 1.0% of the total arable land.

  3. https://www.rbc.ru/business/27/10/2022/6357d0439a7947c26-51ce218.

  4. https://rosorganic.ru/files/Анализ%20органического%20-рынка%202021%20г.pdf.

  5. For comparison: according to Rosstat, the total area of agricultural land in Russia as of January 1, 2021 was estimated at 193.5 million ha, and the area of arable land, at 115.9 million ha.

  6. At the same time, according to FiBL estimates [1], in 2020, the area of agricultural land for organic production in Russia amounted to 615 thousand ha (0.82% of the corresponding global indicator or 0.3% of the total area of agricultural land in the country), and organic retail sales amounted to €183 million (0.15% of global retail sales).

  7. https://specagro.ru/news/202205/rost-potrebleniya-organicheskoy-produkcii-v-rf-v-proshlom-godu-sostavil-12.

  8. In 2018, in the structure of organic sown areas, grains and leguminous crops accounted for 53% (including: wheat 23.2%, corn 15.8%, peas 8.4%), oilseeds 40% (soybean 28.2%, sunflower 9.4%, rapeseed 2.3%) [3].

  9. https://mcx.gov.ru/press-service/news/minselkhoz-razrabotal-strategiyu-razvitiya-organicheskogo-selskokhozyaystvennogo-proizvodstva-v-ross/.

  10. Such ambitious plans, apparently, are associated with the expected increase in the average per capita expenditure of the population of the Russian Federation on organic products. In 2020, they were estimated at €1.2 per person per year. For comparison: in Switzerland they amounted to €418, €384 in Denmark, €254 in Austria, €212 in Sweden, €188 in France, €180 in Germany, €148 in the United States, €112 in Canada, €47 in Estonia, €19 in the Czech Republic, €18 in Lithuania, €7 in China, and €6 in Latvia [1].

  11. According to Rosstat, the specific application of mineral fertilizers in agricultural organizations in the Siberian Federal District has increased over the past few years (from 16.5 kg of active substance per hectare of sown area in 2019 to 33.4 kg/ha in 2021), but remained significantly lower than the average for Russia (74.6 kg/ha in 2021) and the main agrarian macroregions like the Southern Federal District (103.1 kg/ha), the Central Federal District (120.8 kg/ha), North Caucasian Federal District (93.6 kg/ha), and Volga Federal District (48.8 kg/ha).

  12. https://www.agroxxi.ru/stati/istorija-organicheskogo-selskogo-hozjaistva-3-yetapa-stanovlenija-i-rosta.html.

  13. https://www.ifoam.bio/why-organic/organic-landmarks/definition-organic.

  14. https://docs.cntd.ru/document/550835238.

  15. https://rosorganic.ru/files/Анализ%20органического%20-рынка%202021%20г.pdf (p. 11).

  16. In Russia, there is a single state mark of organic products, which was approved by the Order of the Ministry of Agriculture of Russia no. 634 of November 19, 2019.

  17. The cost of obtaining or renewing a certificate according to the Russian standard is from 150 thousand RUB, according to foreign standards – from 300 thousand RUB for a farm [7, p. 56].

  18. https://www.interfax.ru/interview/842515.

  19. https://www.interfax.ru/russia/842517.

  20. Scenarios 2 and 3 assume that the yield of wheat in the first years of the transition to organic technology is 40–50% lower than in scenario 1, but by the end of the considered period, due to soil biologization, it increases to the level of yield in traditional production in the base year. Scenarios 2 and 3 take into account the costs of preaudit and certification of the farm according to foreign standards, and scenario 3, additional costs for soil composition analysis and return of fallow lands to circulation. The first year under scenario 3 is devoted to land reclamation, and the production of organic wheat starts from the second year.

  21. There is no consensus among scientists on the extent to which modern pesticides, synthetic fertilizers, chemical and biological additives or genetically modified organisms are dangerous to human health (or more dangerous compared to the resources used in organic production, including permitted minerals and organic fertilizers). https://ncbi.nlm.nih.gov/pmc/articles/PMC5658984/; https://expert.ru/expert/2009/38/zubastaya_mat_priroda/.

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Funding

The work was supported by a grant from the President of the Russian Federation for state support of leading scientific schools. NSh-1129.2022.2.

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Authors and Affiliations

  1. Institute of Economic Forecasting, Russian Academy of Sciences, 117418, Moscow, Russia

    D. A. Polzikov & N. D. Skubachevskaya

  2. Novosibirsk State Agrarian University, 630039, Novosibirsk, Russia

    V. V. Aleshchenko

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  1. D. A. Polzikov
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  2. N. D. Skubachevskaya
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Correspondence to D. A. Polzikov.

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Translated by S. Avodkova

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Polzikov, D.A., Skubachevskaya, N.D. & Aleshchenko, V.V. Problems and Opportunities for the Development of Organic Agriculture in Siberia. Stud. Russ. Econ. Dev. 34, 342–352 (2023). https://doi.org/10.1134/S1075700723030127

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