Journal of Environmental Treatment Techniques  
2019, Special Issue on Environment, Management and Economy, Pages: 930-934  
J. Environ. Treat. Tech.  
ISSN: 2309-1185  
Journal web link: http://www.jett.dormaj.com  
Issues on Increasing Efficiency of Agricultural  
Business in the Republic of Tatarstan  
1
2
2
Alina R. Battalova *, Farit N. Mukhametgaliev , Farida F. Mukhametgalieva ,  
Landish F. Sitdikova. 2  
1
Institute of Management, Economics and Finance, Kazan Federal University, Kazan, Russia  
2
Institute of economics, Kazan State Agrarian University, Kazan, Russia  
Received: 11/09/2019  
Accepted: 12/11/2019  
Published: 20/12/2019  
Abstract  
The relevance of the paper’s topic is due to the need to search for new directions to increase the efficiency of the activities of  
agrarian business entities, to analyse the reasons and factors hindering their development in the modern economic situation. The  
purpose of the paper is to summarize the results of activities, systematise the problems in the effective development of  
agricultural business entities and develop recommendations for organizing their effective production and economic activities. The  
subject of the study is the organizational and economic mechanism of control over the economic efficiency of agricultural  
organizations. The novelty of the research is to identify trends in the formation and development of agricultural business and to  
develop directions for improving the organizational and economic mechanism intended for improving the competitiveness of  
economic entities in the regional agribusiness. The main outputs of the authors’ study are the following: results of a practical  
analysis concerning the effectiveness of the activities of agricultural business entities are presented; the current trends, problems  
and prospects for their progressive development are identified; the main directions for improving the efficiency of the agricultural  
sector of the economy in the Republic of Tatarstan are identified. The theoretical provisions and practical recommendations  
proposed in the paper can be applied in the process of scientific applied research on the problems of agricultural business  
development, with the scientific substantiation of the main directions, methods and mechanisms for implementing the state agro-  
food policy.  
Keywords: agriculture, agricultural policy, agricultural business, efficiency, competitiveness  
1
company (1). The interests for the further development of  
1
Introduction  
the agricultural sector in the regional economy require a  
deeper study of the issues of improving the economic  
mechanism for the implementation of the internal reserves  
of agricultural business entities. In this case, special  
attention should be paid to the development of new models  
of the economic mechanism that contribute to reducing  
labour costs and funds per unit of output. The solution to  
the problem of accelerated agriculture development largely  
depends on the effective use of the existing production  
potential of agricultural enterprises, on the elimination of  
One of the cornerstones in the development of the  
modern domestic economy remains the achievement of  
stable economic growth. Among the factors that have an  
important influence on the dynamics of economic  
development, of course, it is necessary to highlight the  
definition of strategic directions for the development of the  
agricultural sector of the economy. The main goal of  
agricultural business entities is to increase the efficiency of  
production and economic activities. In the structure of a  
market economy, commercial activity occupies a special  
place, since there is no economic growth without  
entrepreneurship and competition. The experience of  
developed countries with market economies confirms the  
relevance of commercial activities to create a functional  
production infrastructure, as well as the formation of  
economic efficiency of a particular region, industry, and  
mismanagement, waste and losses,  
a low level of  
production technology (2). All this, of course, makes urgent  
the problem of choosing strategic directions for the further  
development of the agricultural sector of the economy. In  
this regard, the analysis of the level of agricultural  
production efficiency and the search for new directions and  
mechanisms to increase the efficiency of the agricultural  
business is one of the urgent problems.  
Corresponding author: Alina R. Battalova, Kazan Federal  
University, Kazan, Russia. E-mail: alina.sr@mail.ru. Tel:  
89376164211.  
930  
Journal of Environmental Treatment Techniques  
2019, Special Issue on Environment, Management and Economy, Pages: 930-934  
organizational, economic and technological conditions for  
the functioning of agricultural organizations. It is necessary  
to develop specific recommendations for improving the  
organization of production based on local regional soil and  
climatic conditions and the available resource potential of  
agricultural producers.  
The Republic of Tatarstan is among the three best  
entities of the Russian Federation in terms of gross  
agricultural output; it provides the full amount of foodstuffs  
to the population living in the territory of the republic. The  
republic occupies a land area of 6.8 million hectares, of  
which agricultural subjects with an area of 4.5 million  
hectares, including 3.4 million hectares of arable land  
which are at the disposal of agricultural business entities.  
At the beginning of 2018 the population of the Republic of  
Tatarstan amounted to 3894 thousand people, the average  
annual number of people employed in the economy of the  
region is 1952 thousand people, of which the number of  
workers employed in the agricultural sector amounted to  
2
Methods  
The theoretical and methodological basis of the  
research was the work of the classics of economic science,  
publications of modern domestic agrarian economists  
regarding the problems of regulation of agrarian food  
policy, materials of international and all-Russian scientific  
and practical conferences. The general methodological  
basis of the study is system analysis. In the process of  
work, a set of monographic, abstract-logical, analytical,  
economic-statistical, computational-constructive and other  
methods of scientific research was applied. The research  
information base used by the authors were official data  
from the Federal State Statistics Service of the Russian  
Federation, the Ministry of Agriculture of the Russian  
Federation, the Ministry of Agriculture and Food of the  
Republic of Tatarstan, planning and reporting documents of  
agricultural organizations, materials contained in  
monographs, theses, reports of research institutes, in  
publications, materials of scientific conferences, expert  
evaluations, data obtained during the author's analysis and  
calculations.  
170 thousand people, which is 8.7% in terms of population  
share of the republic. Agricultural business is represented  
by 15 thousand agricultural organizations with various  
forms of management and ownership, and by more than  
3
Results and Discussion  
Theoretical and practical aspects of the effective  
400 thousand personal subsidiary farms. About 40 dairy  
plants, 5 meat processing plants and more than 100 meat  
processing workshops, 3 sugar factories are engaged in  
agricultural processing. The volume of the gross regional  
product of the Republic of Tatarstan in 2017 amounted to  
functioning of the agro-industrial complex have been  
studied by such researchers as A. N. Burkhanov, I. N.  
Buzdalov, L. I. Krutova, I. A. Minakov, E. A. Sagaidak, V.  
M. Svobodina, A.F. Safronov, N.I. Kholod, and others (3,  
2115.5 billion roubles, with a growth rate of 2.8%  
4). Studying the issues of increasing the efficiency of  
compared to the previous year.  
.
production and economic activity of agricultural business  
entities is relevant in the current unstable conditions of  
market functioning, as well as in relation to specific  
Agriculture; 12,1%  
Other areas of  
activity; 6,3%  
Industry; 43,2%  
Trade; 22,9%  
Transport,  
communication;  
Building; 9,0%  
6,5%  
Figure 1: The share of agriculture in the structure of the gross regional product of the Republic of Tatarstan for 2017  
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Journal of Environmental Treatment Techniques  
2019, Special Issue on Environment, Management and Economy, Pages: 930-934  
Table 1: The main indicators of the agrarian business activities for 2013-2018  
2
018 in % to  
Indicators  
2013  
60.2  
2014  
2015  
2016  
2017  
2018  
2
017  
2013  
Gross agricultural output at  
current prices, billion roubles  
1
186.0  
217.1  
233.7  
235.3  
216.0  
92  
135  
Including crop production  
livestock  
79.0  
81.6  
88.7  
97.3  
109.2  
107.8  
120.9  
112.7  
119.0  
116.3  
101.7  
114.3  
85  
98  
129  
140  
Volume index of the previous  
year - total,%  
9
8.6  
102.9  
104.9  
104.3  
105.0  
97.1  
x
x
Including crop production  
livestock  
99.4  
97.9  
105  
108.8  
101.4  
108.2  
100.4  
109.7  
100.7  
92.3  
x
x
x
x
101.0  
101.8  
Production, thousand tons  
Grain in weight after  
processing  
2
611.5  
3366.0  
3367.7  
4105.2  
4868.2  
3657.6  
75  
140  
Potatoes  
Sugar beet  
Vegetables  
Milk  
1323.0  
2109.8  
329.4  
1315.8  
1408.4  
357.0  
1589.7  
2011.8  
385.3  
1440.7  
2326.2  
400.9  
1466.8  
3100.2  
405.2  
1189.6  
2102.7  
327.7  
81  
68  
81  
90  
100  
99  
1712.2  
1728.3  
1753.7  
1774.5  
1823.8  
1848.0  
101  
102  
117  
108  
Cattle and poultry for  
slaughter (in live weight)  
4
77.2  
465.9  
468.8  
486.2  
491.6  
502.2  
105  
129  
Egg, mln. offs  
1073.0  
1104.8  
1170.6  
1143.6  
1187.5  
1387.4  
A significant share in the structure of the gross regional  
product is occupied by industry, agriculture and trade (5,  
result of which the total number of agricultural  
organizations is reduced, and over the past six years, 23  
farms have been transformed by merging several into one  
larger farm. For the analysed period, the number of  
effectively functioning agricultural business entities  
remains constant; in 2018, 425 farms (92%) out of 463  
turned to be profitable.  
It should be noted that targeted government support  
plays an important role here, due to which the average  
profitability of the agricultural sector is 10%. The data  
indicate that without state participation in financing the  
agricultural business, farms would be unprofitable. The  
agricultural business in the Republic of Tatarstan has  
significant advantages in conducting its production  
activities, which contributes to higher performance of the  
activities of agricultural business entities. The main  
problem of their effective development is the lack of  
cooperative formations that would allow the transfer of  
production to industrial technologies (7, 8). The trends  
hindering the progressive development of agriculture  
include:  
6). The share of agriculture in the total structure of the  
gross regional product of the Republic of Tatarstan in 2017  
amounted to 12.1%; in previous periods, the share of  
agricultural activity did not change significantly. On the  
whole, agricultural output in 2017 increased by 5.2% at  
comparable prices, compared to 2016 and amounted to  
256.1 billion roubles. The main indicators of the  
agricultural sector development are given in Table 1. At the  
end of 2018, the agricultural output of all categories of  
agricultural producers amounted to 216.0 billion roubles  
(
92.0 per cent compared to 2017 at current prices). If we  
consider the dynamics of indicators over a longer period,  
the average annual growth rate in agriculture of the  
Republic of Tatarstan over the past six years is 35%, i.e., an  
average of 5.8% per year, which shows the dynamic  
development of production in the agricultural sector of the  
economy. If we consider the results of the crop production  
in the region for 2018 in terms of specific production  
indicators, it can be noted that the republic provided itself  
with the necessary production volumes. Livestock  
production has a steady growth rate. At the same time, the  
production efficiency of certain types of agricultural  
products remains low (Table 2). In general, agricultural  
production is profitable, with the exception of cattle meat  
production, but the level of profitability does not exceed  
- A decrease in the progressive effect of investments in  
agriculture within the framework of the implementation  
of state programs 2009-2012;  
- Lack of funds for organizing the current activities in  
agricultural business entities;  
- Suspension of investment activity in agriculture due to the  
cessation of foreign investment and the inaccessibility  
of bank loans to agricultural organizations;  
10-12%, which does not allow for expanded reproduction  
based on the modernization of the material and technical  
base.  
- Lack of prerequisites for the growth of agricultural  
production (9, 10).  
In this regard, the main objectives for the development  
of agriculture in the Republic of Tatarstan for the medium  
term are:  
The main performance indicators of large and medium  
agricultural organizations in the Republic of Tatarstan are  
shown in table 3. Recently, the republic is undergoing a  
consolidation process for agricultural business entities, as a  
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2019, Special Issue on Environment, Management and Economy, Pages: 930-934  
Table 2: The agricultural production efficiency in the Republic of Tatarstan  
Cost of 100 kg sold products, roubles  
Selling price, 100 roubles/kg  
Profitability level,%  
Product type branch  
2
018 in % to  
017  
2018 in % to  
2
017  
2018  
2017  
2018  
2017  
2018  
2
2017  
Grain  
Potato  
577  
786  
715  
797  
124  
101  
118  
111  
627  
949  
800  
927  
128  
8.7  
11.9  
16.3  
7.6  
98  
20.8  
15.6  
21.1  
Sugar beet  
Rapeseed  
147  
173  
170  
186  
109  
101  
1548  
1726  
1874  
1891  
9.5  
Crop production, in  
general  
x
x
x
x
x
x
12.7  
12.0  
Milk  
Cattle meat  
1776  
13611  
8307  
8841  
3713  
x
1770  
13919  
8066  
8098  
3533  
x
100  
102  
97  
92  
95  
x
2228  
10441  
10888  
9967  
4312  
x
1943  
10813  
11474  
8794  
4551  
x
87  
104  
105  
88  
25.4  
-23.3  
31.1  
12.7  
16.1  
10.0  
9.8  
-22.3  
42.3  
8.6  
Pork meat  
Fowl  
Egg (thousand offs)  
Livestock as a whole  
106  
x
28.8  
6.3  
Table 3: Financial results of the agrarian business activities in the Republic of Tatarstan  
Indicators  
2013  
2014  
2015  
2016  
2017  
2018  
Number of farms, units  
Including profitable, units  
share of profitable,%.  
Unprofitable units  
486  
383  
78.8  
103  
21.2  
427  
392  
91.8  
35  
442  
401  
93  
493  
455  
92  
486  
443  
91  
463  
425  
92  
41  
38  
43  
38  
Share of unprofitable,%  
8.2  
7
eight  
9
eight  
The amount of profit before tax, mln.  
roubles  
2
571.1  
9834.8  
16.2  
12682.5  
17.4  
7755.2  
9.4  
7933.9  
9.6  
8826.5  
10.1  
The level of profitability,%  
4.5  
Targeted financing and revenues from  
the budget, mln. roubles  
12306.5  
9837.4  
13641.6  
11662.4  
10260.8  
9581.2  
The share of budget revenues in cash  
receipts,%  
21.1  
15.8  
16.7  
12.7  
11.5  
10.3  
-
-
Production of seeds for various crops;  
Growth in the construction of agricultural storage  
complexes;  
Construction of closed water supply systems for the  
cultivation of fish and young fish in closed systems;  
Production of deep-processed raw milk products (dry  
baby food), lactose, phosphate, whey;  
Construction of plants for the deep processing of raw  
materials in order to produce vegetable proteins and  
concentrates;  
agricultural activity in the Republic of Tatarstan are large  
and have a significant reserve for further growth. A  
favourable situation has been created at the state level,  
which, through financing the agricultural sector, stimulates  
agricultural entrepreneurs to develop their own production  
enterprises, which ultimately will affect the activities of the  
agricultural sector as a whole.  
-
-
-
4
Summary  
As a result, we can say that the development efficiency  
-
Construction of wholesale distribution centres (11, 12).  
For these measures aimed at the development of  
of the agricultural business in the Republic of Tatarstan has  
positive dynamics. Business in the agricultural sector is  
agriculture in the republic, there are such reserves as the  
availability of free and fertile land; the presence of excess  
raw materials (grain, legumes, raw milk) and the need to  
increase the added value of products; import of products  
and the need to supplant imports; increase self-sufficiency  
in Russia; increase the export of agricultural products in  
Tatarstan. Thus, the prospects for the development of  
successful and is  
a field of efficient activity, the  
development of which requires constant capital  
investments. With the support of the state for 2015-2018,  
projects were implemented in the republic that contributed  
to greater productivity of agricultural enterprises. The state  
of the agricultural business depends on the level of the  
933  
Journal of Environmental Treatment Techniques  
2019, Special Issue on Environment, Management and Economy, Pages: 930-934  
country's economy, as well as on the identification and  
implementation of internal development factors, which  
include optimization of production and sales, regulation of  
sales markets within the country and abroad, modernization  
of the technical process, increasing competitiveness, and  
organizing an effective management system. One of the key  
indicators of agricultural production management is the  
effectiveness of agricultural business entities activities.  
The main reasons for the low efficiency of agricultural  
production are: the existing disparity in prices for industrial  
and agricultural products; the use of obsolete and low-  
efficiency technologies, unproductive animal breeds and  
low-yielding varieties of crops; lack of deep processing of  
agricultural raw materials; financial insolvency of small  
businesses for the acquisition and implementation of  
innovations.  
References  
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Menzel MP, Fornahl D. Cluster life cycles—dimensions and  
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development of social infrastructure in rural territories and its  
impact on the economic indicators of agricultural production.  
Bulletin of Kazan GAU. 2015;(3):39-55.  
Based on the state of the agricultural economy and  
development trends in the republic, it is necessary:  
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Elaboration and implementation of proposals for  
regulating the pricing conditions intended for commodity  
agricultural products and subsidizing agricultural  
enterprises;  
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development in the context of the upcoming entry of Russia  
into the World Trade Organization. Bulletin of Kazan GAU.  
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Elaboration and implementation of recommendations  
for the development of commercial considerations in the  
field of agricultural business, improvement of the labour  
motivation system for workers, primarily managers and  
specialists, since, first of all, they must realize on-farm  
reserves that affect the efficiency of management  
2
012;(1):48-51.  
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5
Conclusions  
The analysis of the economic development concerning  
1
0. Kirillova OV, Faizrakhmanov DI, Sitdikova LF. Features of  
state support of the agricultural sector of the Russian economy  
and its role in supporting the country’s food security. Vestn.  
Kazan. Gos. Agrarn. Univ. 2017(2):49-53.  
the agricultural business in the Republic of Tatarstan  
revealed the following problems: the lack of effective  
markets for agricultural products; low quality of products;  
low return on fixed assets; high obsolescence and technical  
depreciation level for fixed assets; high cost of production.  
Agricultural business is an important factor in solving the  
economic and social problems of the Republic of Tatarstan,  
such as creation of a competitive agricultural environment;  
creation of additional jobs in rural areas; increasing the  
volume of livestock and crop production; improving the  
quality of agricultural products; assisting to large  
agricultural enterprises by creating subsidiary or serving  
industries; maintaining innovative activity in the  
introduction of new technologies and equipment.  
11. Mohamed, H. S. H., & Ahmed, S. A. (2019). Reviewing of  
Synthesis and Computational Studies of Pyrazolo Pyrimidine  
Derivatives. Journal of Chemical Reviews, 1(3. pp. 154-251),  
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83-232.  
1
2. Moosavi-Zare AR, Zolfigol MA, Khaledian O, Khakyzadeh V,  
Farahani MD, Kruger HG. Tandem Knoevenagel–Michael-  
cyclocondensation reactions of malononitrile, various  
aldehydes and dimedone using acetic acid functionalized ionic  
liquid. New Journal of Chemistry. 2014;38(6):2342-7.  
Therefore, the organization and management of an  
agricultural business in the Republic of Tatarstan is a  
strategic task to form its strong position in the region's  
economy. Today, agricultural entrepreneurship has strong  
positions in the Republic of Tatarstan based on effective  
organization and management, with a view to long-term  
strategic growth as to the socio-economic aspect of its  
development. Having a significant share in the structure of  
the gross regional product, an agricultural business should  
be supported by the state at a high level.  
Acknowledgements  
The work is performed according to the Russian  
Government Program of Competitive Growth of Kazan  
Federal University.  
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