Development of Organic Milk Production in Russia: Preferred Regions from the Perspective of Sustainability
The article proposes methods of assessment and identifies regions of Russia that have highest potential for sustainable development for organic milk production. Regions of the European part of Russia are divided into groups based on their production potential and the dynamics of development of selected sub-sectors of agriculture. These regions were grouped and assessed for their comparative advantages of milk production relative to crop production. Comparative advantage index has been applied. Specific requirements for organic milk production were considered in the developed system of indicators. Regions were ranked in accordance to these indicators and assessed for the prospects of the development of organic production. The calculated index of comparative advantage as well as the rating results showed that the regions of the Northern Black Earth region have a comparative advantage of organic milk production and objective prerequisites for a sustainable increase in its production. Potential investors may consider this as an argument in a decision for the location of organic milk production. Those comparative advantages will support regional authorities’ decision in prioritizing support for agricultural sub-sector and will increase the efficiency of budget funds.