The Impact of Food Embargo on Meat Industry and Diary

This paper examines the problem of identifying embargo effects on the production and processing of meat and dairy industry. The key issue of research is to determine and estimate the net impact of the embargo on the production and processing of certain agricultural products, namely meat and dairy. Much research on the topic has been done worldwide over the recent years. In this study, already existing sources and works devoted to the impact of the food embargo on the agro-industrial complex of Russia will be considered, along with such concepts as import substitution and food security of the state. Attention will also be paid to the impact of the Russian embargo on other countries, in particular, on the countries of the European Union. Most of the research in this area contains only regional-based analysis, but the analysis of the effect of the embargo is not being investigated at the firm level, which makes the task of considering the effect of embargo at the company level relevant, including the "Difference-in-Difference" estimation method for assessing the impact of the food embargo on the production and processing of meat and dairy enterprises industry. In this paper, an empirical analysis based on the Difference-in-Difference estimation method by considering two time periods and two groups, experimental and control, to assess the impact of the food embargo on the production and processing of meat and dairy enterprises, was carried out. From the received results it can be noticed the negative effect from introduction of embargo on the companies of the meat industry, and little positive impact at the enterprises of dairy sector. The obtained research data can be useful for further improvement of various programs and projects aimed at solving the problems of food security of the state.