Export capacity evaluation of Omsk region dairy producers using the DRC analysis

The main goal of the state regarding the agroindustrial complex, to date, is the formation of a competitive industry. The situation in the milk market shows that most countries can not meet the need of their population for food, and through the import of high-quality Russian milk this problem will be successfully solved. Dairy farming in the Omsk region most urgently needs to improve support measures, especially as part of the import substitution strategy, where one of the main points is the formation of export potential. The development of agricultural exports is, above all, the search for new markets. To understand whether it is profitable for a manufacturer to enter the foreign market of a product, it is necessary to assess the export potential in relation to this industry and draw the appropriate conclusions. In order to assess the comparative advantages of milk as a commodity in the region and the possibility of developing its exports, it was suggested to apply the Domestic Resource Cost (DRC) methodology, adjusted to the regional level. DRC is found as the value of the alternative cost of internal factors of production per unit of surplus product. Public value, therefore, corresponds to the benefit derived from a decrease in imports or an increase in exports with an increase in domestic production. It determines the efficiency of production using internal resources so as to win the unit of exchange. The calculation of DRС-analysis is carried out on the example of Public corporation “Sibiryak” of the Russian - Polyansky District of the Omsk Region. On the basis of calculations, it was concluded that the production of milk, as a commodity produced for export in this enterprise, has comparative advantages in the region. Such calculations can be used to justify the provision of state support for the implementation of the strategy of import substitution policy.