Efficient production and sale of root vegetables in the Moscow region

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Efficient production and sale of root vegetables in the Moscow region
IOP Conference Series: Earth and Environmental Science

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Efficient production and sale of root vegetables in the Moscow region
To cite this article: A F Razin et al 2021 IOP Conf. Ser.: Earth Environ. Sci. 650 012057

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SUSTAINABLE AND INNOVATIVE DEVELOPMENT IN THE DIGITAL AGE                               IOP Publishing
IOP Conf. Series: Earth and Environmental Science 650 (2021) 012057 doi:10.1088/1755-1315/650/1/012057

Efficient production and sale of root vegetables in the Moscow
region

                     A F Razin1*, M A Kosenko1, M I Ivanova1, A V Kornev1 and L M Sokolova1
                     1
                      Federal Scientific Vegetable Center, 14, Selectsionnaya str., VNIISSOK, Odintsovo
                     district, 143072,Moscow region, Russian Federation

                     E-mail: vniioh@yandex.ru

                     Abstract. Based on official statistics, the analysis of the economic efficiency of production and
                     sale of root vegetables on the example of carrots and beets in the Moscow region for the period
                     2012-2016 was carried out. Separate economic indicators of the largest agricultural holdings in
                     the region are presented: CJSC “Bunyatino” and CJSC “Kulikovo”. It is indicated that in the
                     conditions of import substitution, the average annual level of profitability of production of root
                     vegetables by industrial technologies is 27-28%. Increasing the economic efficiency of
                     agricultural production is reduced to increasing crop yields, improving the use of fixed and
                     working capital, reducing the cost of production, increasing labor productivity and product
                     quality.

1. Introduction
The average annual physiological rate of vegetable consumption in Russia, depending on climatic
conditions and national characteristics, ranges from 100 to 150 kg per person per year [1]. Analysis of
vegetable production showed that the share of commercial vegetable production in Russia is about half
of the capacity of the domestic market [2].
    The Nonchernozem zone of the Russian Federation is the largest agricultural zone of the country,
which has a large-scale natural and biological and economic potential. Vegetable growing is one of the
original industries of the region. It is a supplier of fresh vitamin products and raw materials for the
processing industry. The area under open ground vegetable crops annually ranges from 148.5 to 153.8
thousand hectares, or about 23% of the total area of these crops in Russia [3]. However, despite the
dynamics of improvement, many problems remain unresolved. The growth rate of production of
vegetable raw materials is insufficient for industry and constrains the growth of production from
domestic raw materials. This explains the high level of imports [6]. The volume of vegetable
production in the last 6-7 years has stabilized and is slightly more than 16 million tons, and together
with imports, most of it covers the needs of the population. However, the product range is very
narrow, 2/3 of the gross output is provided by 5-6 crops, out of more than 100 cultivated species [8].
    Production of carrots in Russia is a developed area. The total area under carrots is 70,000 ha,
including 30,000 ha in commercial farms [10]. From year to year, the consumption of carrots is
growing, and, accordingly, the demand is growing. If previously the consumer did not demand high
quality carrots and was ready to refine it himself, now the buyer requires, in addition to washed,
polished and packed carrots: a smooth, beautiful root crop with rich orange color.
    For year-round consumption of carrots, it is necessary to observe the technology of its production
and storage conditions. Varieties intended for long-term storage should be high-yielding, with strong

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SUSTAINABLE AND INNOVATIVE DEVELOPMENT IN THE DIGITAL AGE                               IOP Publishing
IOP Conf. Series: Earth and Environmental Science 650 (2021) 012057 doi:10.1088/1755-1315/650/1/012057

developed tops that do not lie down until the onset of stable frosts; root crops should differ in high
sugar content and carotene content [13]. Today, the problem of selling agricultural products remains
the main barrier to the development of agricultural production [5].There are the following problems in
the field of sales of farm products: 1. Low consumer attractiveness of the product due to the lack of a
system of standardization of farm products. 2. Higher cost of production compared to imports. 3.
Weak development of warehouse and logistics technologies, lack of business for processing and
storing vegetables: the percentage of crop loss by spring reaches 30-40 % or more.
   According to the Order of the Government of the Russian Federation dated October 2, 2014. No.
1948-r “On approval of the action plan to promote import substitution in agriculture for 2014-2015”
changes were made to the state program for the development of agriculture and regulation of markets
for agricultural products, raw materials and food for 2013-2020 in order to stimulate import
substitution. Now Russian farmers have a real chance to enter the market from scratch [19].
   In Russia, traditional markets are gradually disappearing, and they are being replaced by super -
and hypermarkets of retail chains. Both large foreign and Russian retail chain companies at the federal
level and small domestic regional retail chains are actively developing. A large number of varieties
andrrg hybrids of carrots are suitable for sale in retail chains, first of all, we can distinguish F1 Baby,
Berlicum Royal and Nantes, which have the most attractive appearance for the buyer and have
excellent taste. Beets are packed at 0.5-5.0 kg in bags made of polymer films, bags made of polymer
and combined materials or other transparent film. Beet roots of the second class are not packed [11].
The most successful producers are those who correctly approach the use of resources, and due to
competition, there is a need to improve the quality of products and reduce prices, and accordingly, the
improvement of these factors is in the cost [12].
   The aim of the work is to analyze the economic efficiency of production and sale of root vegetables
on the example of carrots and beets in the Moscow region.

2. Materials and methods
Materials in the work were official statistics, including indicators that characterize import substitution
in Russia, the Federal State Statistics Service (Rosstat), data from the AB Center (expert and analytical
center for agribusiness), large-scale producers of root vegetables, information from the Federal
Research Center for Vegetable Production. The main methods used in research, observation and
collection of facts, analysis and synthesis, system approach. The considered years of the experiment
are 2012-2016.

3. Results
Crop production with predominance of vegetable production is more developed in the southern and
south-eastern territories of the Moscow region. Approximately 15% of the area under cultivation is
occupied by vegetables. In 2010, the region ranked 5th in Russia in terms of gross vegetable harvest.
However, this is not enough to meet the needs for potatoes and vegetables of residents of the capital
and suburbs. Vegetables, including potatoes, are additionally imported for sale in Moscow and the
Moscow region from other regions and from countries near and far abroad (Egypt, the Netherlands,
Israel, Iran, Belarus).
    In large agricultural holdings, the entire technological chain is concentrated; starting from planting
crops to supplying washed, packaged products to the retail network. Agricultural holding
“Dmitrovskie vegetables” is located in the Dmitrov district. Its assortment includes potatoes, white
cabbage, carrots, onions, which are grown on 2000 hectares of land in the Yakhromskaya floodplain.
The Malino group of companies includes 19 enterprises in 4 regions of Russia, including the
Stupinsky district of the Moscow region. “Malino” is located on only 50 thousand hectares of land.
The agricultural holding produces potatoes and vegetables (cabbage, carrots, beets), greens (lettuce,
parsley, dill), grain, sunflower, sugar beet, rapeseed, flax, milk, animal feed an important part of the
production of “Malino” is seed production (onions, potatoes, grain). JSC “Dashkovka” in the
Serpukhov district of the Moscow region produces up to 30 thousand tons of open ground vegetables

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SUSTAINABLE AND INNOVATIVE DEVELOPMENT IN THE DIGITAL AGE                               IOP Publishing
IOP Conf. Series: Earth and Environmental Science 650 (2021) 012057 doi:10.1088/1755-1315/650/1/012057

per year (potatoes, cabbage, beets, onions, carrots, and others) using the most modern technologies
(table1) [21].
    According to Rosstat, only 513.7 thousand tons of vegetables were produced in the Moscow region
in 2017, and 531.4 thousand tons in 2018, which is 3.4% higher than last year.

 Table 1. Characteristics of large-scale farms in the Moscow region in terms of vegetable production,
                                               2012-2016.
    Farms           Sown area, ha             Gross harvest, thousand ha Yield, t/ha
                    average     2012-2016 average             2012-2016      average     2012-2016
    CJSC            476         497           32.2            38.4           67.1        77.3
    “Kulikovo”
    CJSC            498         610           28.2            29.4           56.5        48.3
    “Bunyatino”
    Yakhromsky 408              420           19.3            22.0           47.1        52.4
    Agricultural
    College
    CJSC            382         385           18.8            21.0           47.6        54.5
    “Ozery”
   According to the AB Center (expert and analytical center for agribusiness), in 2015, the sown area
of carrots in the Russian Federation amounted to 70 thousand hectares. The share of agricultural
organizations and farms accounted for 23.6 thousand hectares. The main producers of carrots in the
Moscow region are the following farms: LLC “Agronaut” (155 ha), CJSC “Kulikovo” (255 ha), CJSC
“Agrofirm “Bunyatino” (280 ha), CJSC “Ozery” (185 ha), CJSC “Shestakovo” (50 ha), CJSC
“Dashkovka”(43 ha), CJSC “Leninskoe” (30 ha), CJCS “Severka” (90 ha). A wide range of heterotic
carrot hybrids are grown in the region: F1 Olympian, F1 Charlotte, F1 Nautilus, F1 Attilio, F1
Baltimore, F1 Dordogne, F1 Zafira, F1 Cascade, F1 Concerto, F1 Maestro, F1 Naval, F1 Nerak, F1
Santa Cruz, F1 Silvano, F1 Elegance, etc. From domestic varieties and hybrids they grow F1 Baby, F1
Altair, F1 Hope, Chantenay Korolevskaya, Chantenay Royal, Minor, Marlinka, etc. In 2016, the total
area of carrot sowing in the region was 2030 ha, gross harvest – 106635 tons, with the average yield of
525 g/ha. According to the structural divisions of municipal administrations, the entire volume of
produced carrots is sold in the Moscow region.
   In the industrial sector of vegetable growing (agricultural organizations and peasant farms,
excluding households of the population), the sown area of beet in 2016, according to Rosstat,
amounted to 17.8 thousand hectares. Compared to the previous year, they increased by 6.0% (by 1.0
thousand ha), by 2013 – by 14.1% (by 2.2 thousand ha), by 2008 (over 10 years) – by 17.7% (by 2.7
thousand ha), by 2001 – by 11.4% (by 1.8 thousand ha).
   The region grows a variety of heterotic hybrids of beet: F1 Boro, F1 Bokhan, F1 Vodan, F1
Kestrel, F1 Cornell, from domestic varieties they used Mulatto, Creole, etc. Farms engaged in large-
scale production, such as LLC “Dmitrovskie vegetables”, CJSC “Kulikovo”, can produce vegetables
with a yield of 70 t/ha of carrots and 60 t/ha of beet. At the present stage of crop production, manual
labor cannot be avoided, the degree of mechanization will be determined by both external conditions
(for example, climate) and internal features of the economy (equipment of financial resources,
qualified personnel) [15].
   Comparison of economic results of large-scale and small-scale farms showed that:- profit per 1 ha
of sown area in large specialized farms, such as CJSC “Kulikovo” is 77-88 rubles/ha, in small-scale
farms-17-34 rubles/ha, that is several times less than in large-scale production;- the average annual
return for the studied years is 27-28% for large farms and 18-20% for small-scale production, or on
average a third lower than high-tech production (table 2).

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SUSTAINABLE AND INNOVATIVE DEVELOPMENT IN THE DIGITAL AGE                               IOP Publishing
IOP Conf. Series: Earth and Environmental Science 650 (2021) 012057 doi:10.1088/1755-1315/650/1/012057

   Table 2. Economic indicators of large-scale farms growing root vegetables in the Moscow region,
                                               2012-2016.
   Farms              Production cost, rubles     Profit, thousand rubles/ha       Profitability,%
                   average      2012-2016        average      2012-2016       average 2012-2016
   CJSC               322.3         207.5           77.3           33.8          26.7          16.2
   “Bynyatino”
   CJSC               233.7         219.8           88.2          116.5          27.9          36.7
   “Kulikovo”
    Economic efficiency of open-ground vegetable growing is characterized by productivity, cost of 1
kg of vegetables, labor productivity level as the volume of production per person/day worked,
person/hour or per average annual employee, profit per 1 ha, and the level of profitability of the
industry. In vegetable growing, soil cultivation, fertilization, row-to-row processing, and plant
protection from pests and diseases are fully mechanized. The level of mechanization of sowing and
planting of vegetable crops is 80-95%. However, a significant part of the work is done manually
(harvesting, weeding) [16].
    To date, the tasks and functions of agricultural producers have significantly expanded, which must
plan their own production activities, improve the production structure in accordance with the
requirements of supply and demand, constantly identify reserves for improving production efficiency
at all stages of the technological process, improve the mechanisms for selling products, and organize
its promotion to consumers. For active economic interaction between the seller and the buyer, it is
necessary to create a single commodity production network that allows promoting quickly the product
with the least losses [18].
    Unfortunately, Russian farmers today have a harder time than European farmers. Europe has long
established a system of wholesale distribution centers with a well-thought out system of long-term
contracts, logistics and storage facilities. The farmer only needs to grow the crop according to the
contract, without worrying about marketing and sales. Russian farmers face a more difficult task – first
of all, they need to think about how to sell their crops. In addition, an important factor is ensuring
consumer attractiveness and developing the standardization system [20].The average annual level of
profitability of vegetable production by industrial technologies and in today’s difficult economic
situation is 27-28% (CJSC “Bunyatino” and CJSC “Kulikovo”).
    For example, the daily vegetable growing shop of CJSC “Kulikovo” sells up to 70 tons of cabbage,
up to 40 tons of carrots, up to 20 tons of beets. Root vegetables are delivered to the capital’s chain
stores (mainly to the retail network of the X5 Retail group) under the Kulikovo field trademark. There
is pre-sale preparation of vegetables: washing, sizing and sorting. On packaging lines, root crops are
packed in plastic bags and nets with a volume of 1 to 25 kg. Our own transport company provides
assistance in the supply of vegetables.

4. Summary
The Nonchernozem zone of the Russian Federation is the largest agricultural zone of the country,
which has a large-scale natural, biological and economic potential. In large agricultural holdings, the
entire technological chain is concentrated, starting from planting crops to supplying washed, packaged
products to the retail network. The main producers in the Moscow region are the following farms:
LLC “Agronaut” (155 ha), CJSC “Kulikovo” (255 ha), and others. Farms engaged in large-scale
production, such as LLC “Dmitrovskie vegetables”, CJSC “Kulikovo”, can produce vegetables with a
yield of 70 t/ha of carrots and 60 t/ha of beets. A comparison of the economic results of large-scale
and small-scale farms showed that the profit per 1 ha of sown area in large specialized farms, such as
CJSC “Kulikovo” is 77-88 rubles/ha, in small-scale farms – 17-34 rubles/ha, that is, at times less than
in large-scale production.

5. References
[1] Razin AF, Ivanova MI, Meshcheryakova RA, Razin OA 2016 Modern state of vegetable

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SUSTAINABLE AND INNOVATIVE DEVELOPMENT IN THE DIGITAL AGE                               IOP Publishing
IOP Conf. Series: Earth and Environmental Science 650 (2021) 012057 doi:10.1088/1755-1315/650/1/012057

           growing in Russia (Agricultural Economics) 7 49-54
[2]    Soldatenko AV, Pivovarov VF, Razin AF, Shatilov MV, Razin OA, Rossinskaya OV,
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[4]    Filroze NA, Romanova AV 2016 Comparative characteristics of domestic varieties and foreign
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[10]   Leunov VI 2017 Directions in selection and seed production of vegetable root crops(Potatoes
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[16]   Kosenko MA 2016 Evaluating the effectiveness of vegetable production (In the collection:
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[19]   State program for the development of agriculture and regulation of markets for agricultural
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SUSTAINABLE AND INNOVATIVE DEVELOPMENT IN THE DIGITAL AGE                               IOP Publishing
IOP Conf. Series: Earth and Environmental Science 650 (2021) 012057 doi:10.1088/1755-1315/650/1/012057

        [Electronic resource]
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[21] http://www.ecorodinki.ru/moskovskaya_oblast/selskoe_hozyaystvo/ovoshevodstvo

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