Wholesale distribution centres for decision of agricultural products loss problem

Abstract

The total loss of agricultural production in Russia reaches 30–50%. In the first place that happens because of the lag in the development of logistics infrastructure and processing industry. The result of this is the declining quality and rising cost of domestic production, thus reducing its competitiveness even in the Russian market. Meanwhile the retailer expansion continues and stimulates the growth of food imports and limits the long-term potential of Russian rural areas. Creation of a network of wholesale distribution centres could solve the problem, but for this the designing wholesale distribution centres must have a national scale, to ensure to the greatest degree the interests of the local receivers. Only in this case is the efficient solution of enormous product losses possible, and the state receives new and better opportunities to support the agricultural sector without violation of WTO requirements.