Economic efficiency and development of the third domain of reindeer husbandry (in the republic of Sakha)

Abstract

As is known, the concept of economic efficiency is one of the important categories characterizing the performance of reindeer herding farms. From the point of view of the theory of economic analysis, there is no unified definition of economic efficiency, which means that, as seems to us, the success of reindeer herding farms is still not determined sufficiently. In the article, we also prove that defining the economic efficiency of reindeer husbandry only by the meat production efficiency is not sufficient because the meat production process is not integrated with the processing of reindeer herding products and its sales. As a result, the economic efficiency of reindeer herding production is severely underestimated and leads to low profitability or even losses. The economic efficiency of production can be determined at the national, branch, enterprise and on-farm subdivision, i.e. there is a multilevel approach to the criteria of efficiency or duality of the criteria of efficiency. It is known that indicators of economic efficiency include cost recovery, net production, profit, profitability, rate of return, productivity of live labour, that is, economic efficiency of production is characterised by the ratio of economic effect to costs, which caused this effect. Analyzing the approaches to assessing the efficiency of reindeer herding farms, we came to the conclusion that an integrated approach should be added to the existing ones, as the meat production process is not integrated with the processing of reindeer herding products and their sales, as a result, the economic efficiency of reindeer herding products is greatly underestimated. However, reindeer breeding farms, which receive essentially ecologically pure meat, do not have special prices for it established by the Government of the Republic of Sakha (Yakutia). The establishment of such prices at the regional level would significantly raise the efficiency of reindeer breeding as a branch of economy as a whole. The main task of reindeer farms in the North-East of Russia, which includes the Republic of Sakha (Yakutia) at the present stage is a high average slaughter meat of reindeer carcasses, equal to 65-90 kg. and higher. This main indicator should not be bypassed or denied by zootechnicians, scientists, and heads of agricultural production. Production of cheap high-quality venison meat. - is the key to success.