Assessment of the economic potential and competitiveness of the sugar beet subcomplex in the region

The article gives an assessment of the potential and level of competitiveness of the sugar beet subcomplex of the region. In authors’ opinion the material and technical condition to a great extent depends on the ratio of prices for agricultural and industrial products and on the cost of services, rendered to commodity producers. The existing relationship between beet-growing farms and sugar factories determines the competitiveness of the region's sugar beet subcomplex. Getting maximum profit by both agricultural enterprises and sugar factories is the basis for further development, increase of the production profitability, reduction of production cost, getting profits for further expansion of production volume; it also serves as an indicator for the efficiency of sugar industry in the region. The natural conditions are favorable for the cultivation of sugar beet practically in all areas of the Orel region. The South-Eastern and Central districts of the Orel region have the highest resource potential for sugar beet cultivation. The total acres in these zones are 36.6% and 43.1% with a whole yield of 50% and 30.2% respectively. In 2016, the maximum whole yield of sugar beet was obtained in Livny district (4.815.000 centners), Maloarkhangelsk district (2.360.000 centners) and Glazunovka district (1982.200 centners) of the Orel region. The authors found that the priority guidelines in the sugar subcomplex of the region are the formation and application of a balanced price for sugar beet and sugar, which is a stimulating factor in the effective development of production, which is based on such indicators as production cost, profit, level of profitability, influencing the formation of the sugar price. The problem of the effective development of the sugar industry is relevant and strategic in solving the tasks of regional policy; its realization will eliminate this imbalance, reduce imports and also support the domestic producer.