Global Challenges and Barriers to Sustainable Economic Growth in the

Agribusiness Sector

RISHAT A. MIGUNOV, ANASTASIA A. SYUTKINA, NATALIA F. ZARUK,

ELENA S. KOLOMEEVA, NATALIA V. ARZAMASTSEVA

Russian State Agrarian University, Moscow Timiryazev Agricultural Academy,

Moscow,

RUSSIA

the following: demographic growth and hunger; resource scarcity and the crisis of the AIS 3.0 model; ethical

risks and limitations; natural and climatic changes; recycling, recycling and valorisation of waste; political

instability; challenges of innovative development. It is shown that identification of the main challenges facing

the development of domestic agribusiness sector is the primary basis for the formulation of strategic

development objectives of the agrarian sector. The global challenges identified in the paper represent the basis

for the development of economic policy in the agribusiness sector, including the Russian agrifood policy, the

development of quality formal and informal rules and institutions that support the economic growth of the

agribusiness sector, and also allow risk-oriented approaching to agricultural development in different territories.

Keywords: - Agriculture, economic growth, challenges, risks, institutional environment.

megatrends have emerged in the global

agribusiness sector:

1. Change in value chains: concentration of

value added in science-based sectors:

- increased cost of genetic and breeding process

in crop and livestock production;

- development of digital (IT) and geo-

information technologies;

- emergence of industrial design and

engineering technologies that fundamentally

connectivity, public welfare, etc. These processes

lead to radical shifts in the structure of employment

and the need for a new model of education and

labor market.

3. Redistribution in value chains due to a

confusion of values and choices such as:

The aim of the paper is to investigate the

macroeconomic global challenges of agro-

industrial development that affect the sustainable

development of the sector.

2 Methodology

3 Main Part

In the modern mixed economy the market

institutions and feedback mechanisms in agriculture

prove to be unable to provide competitive and

efficient regulation of agrifood market conditions

and sustainable economic growth in the sector.

Specific factors in the development of the world

agricultural market lead to the formation of global

All this leads to an increasing problem of

demographic growth of the world population and

threats of increasing hunger in developed and

developing countries, including Russia, [11].

previous model of scientific and technological

development of the agrarian sphere.

Studies show that by 2030, due to the declining

agro-climatic potential of rural areas, the

exhaustion of the effects of the Green Revolution,

the growth of biosecurity threats, the increasing

problems with food waste, the world will see a

significant increase in demand for

- food by 35%;

- fresh water by 40%;

emphasis on the development of personalized

nutrition, the consumption of organic food, food

with improved and predetermined properties for a

particular consumer. These changes are

transforming agricultural production and social

reproduction in the agribusiness sector.

The problem of protein production (Figure 3)

and the increasing pressure of this production on

the ecosystem is of particular importance due to the

growth of the world's population and the increasing

Fig. 3: World livestock production by livestock sector, mln t, [13].

Protein production from traditional sources –

beef, pork, chicken – requires significantly more

land and water than from non-traditional sources –

algae, insects (Figure 4, Figure 5), which raises the

Fig. 4: Land area for production of 1 kg of protein,

sq. m., [16].

Fig. 5: Volume of water to produce 200 gr of

protein, ml, [16].Processes of personalization in

logistics chains in regions.

The UN World Food Organization (FAO) estimates

that agriculture is a major source of greenhouse

gases, accounting for up to 12% of global

emissions, [17]. When these figures are combined

with the corresponding changes in land use,

including deforestation (driven largely by

agriculture), agriculture is responsible for a quarter

Fig. 5: The Enormous Scale of Global Food Waste (Total annual household food waste produced in selected

countries), [20].

In developed countries, most waste is generated

in households, restaurants and supermarkets. In

developing countries, it is generated during

transport or during storage. Our desire for

Political-economic, institutional and structural

challenges have become particularly acute in the

third decade of the 20th century, resulting in:

- increased volatility of food prices;

- growing influence of large integrating

companies in the development of the agribusiness

sector within national economies and by

multinational companies; and the impact of

transnational companies on global food markets;

- increasing tendencies towards autarky in

to a boom in biotechnology, and advances in

computing systems have significantly reduced the

time required to find the right solutions. Major

advances include:

- DNA decoding.

mode to another, has developed unique

opportunities for Russian production and

consumption of agricultural products, " windows of

opportunities " for a radical transition to a new

stage of development and to sustainable economic

growth of the sector.

Seriya: Ekonomika. Sotsiologiya.

Menedzhment, Vol. 10(3), 2020, pp. 23-35. –

EDN MUTMSW. (In Russian)

agriculture sustainable in the face of climate

change and environmental threats?

index (accessed on 09 August 2022). (In

Russian)

[16] Companies are looking for new sources of

feed protein. Available online:

https://agronews.com/ru/ru/news/analytics/2

019-01-02/33210 (accessed on 11 August