Sustainable development of organic agriculture: Strategies of Russia and its regions in context of the application of digital economy technologies

• specially protected natural areas -- an indicator reflects the number and area of specially protected areas in a region, their condition, events related to their protection, and level of funding;

• bio-resources -- an indicator reflects the state of all biological resources of a region, for example, hunting or fishing stocks, increasing or decreasing diversity, quality and quantity;

• climate -- an indicator that reflects climate change in a region of the Russian Federation. This indicator also considers natural disasters associated with extreme weather conditions (typhoons, hurricanes, droughts, forest fires, floods).

Starting from 2008, the “Green Patrol” ecological rating has been done on a quarterly basis. For the analysis and selection of regions, the authors used data from spring 2019. The average environmental index is 47 (out of 100) among all regions. Regions with an index below the average were excluded from further analysis. Since one factor of consumer confidence in organic products is the environmental quality in the production area, regions with a higher environmental quality have a higher priority for the development of organic production. Thus, regions with a suitable measure on the environmental index are: Kabardino-Balkaria, Karachay-Cherkess Republic, Republic of Adygea, Jewish Autonomous Region, Tambov Region, Altai Republic, Magadan Region, The Republic of Ingushetia, Kursk region, Komi Republic, Kostroma region, Altai region, Kamchatka region, North Ossetia Alania, Tyva Republic, Chechen Republic, Belgorod region, The Republic of Dagestan, Republic of Kalmykia, Ulyanovsk region, Ryazan' Oblast, Mari El Republic, Stavropol' region, Pskov region, Sakhalin region, Chuvash Republic, Republic of Karelia, Vladimir region, Murmansk region, Penza region, Kaluga region, Kemerovo region, Chukotka, Ivanovo region, The Republic of Khakassia, Amur region, Krasnodar region, Perm' region, Astrakhan' region, Tver' region, Republic of Sakha (Yakutia).

The task of the second stage of the study is to differentiate regions according to two parameters: area of unutilized agricultural land and unemployment rate in regional rural territories. Regions that are the part of the relatively clean group with an average annual environmental index above the average were then divided into four groups according to two parameters: the area of unutilized agricultural land, and the level of unemployment in the rural terrain.

A production process without mineral fertilizers is one requirement for organic agriculture. As noted, Russia has significant areas of unused agricultural land that are an important reserve for organic farming. According to the Russian agricultural census in 2016, 17628.8 thousand ha of agricultural land are not used for intended purposes -- this is 12 % of all agricultural land in the country (142659.7 thousand ha). Agricultural land can be declared unused after it has been unutilized for three years. We can use these data to analyze the potential for developing organic agriculture. However, despite the improvement of soil quality due to the absence of mineral fertilizer, the physical properties of unutilized land deteriorate due to wind- and water-erosion, shrubs, and other weeds. Every year the quality of unutilized agricultural land degrades. The restoration of quality of such lands requires significant additional costs, which reduces the attractiveness of their use for organic production. To solve this problem, in 2011 a special Federal Law was adopted that makes it possible to withdraw land in case of its improper use and return it to agricultural circulation. Consistent implementation of the norms of this law will allow transferring these lands to more efficient owners, perhaps, for the purposes of organic production.

According to the statistical data, we divide all regions into two groups: regions with more than average value of unutilized agricultural land and regions with less than one (Table 1). The average value of unutilized agricultural land is 160 thousand ha (among the abovementioned regions).

Table 1. Area of unutilized agricultural land in Russian regions, 2016

Based on: The Russian Federal Department of Statistics. URL: http://www.gks.ru/free_doc/new_site/business/ sx/vsxp2014/vsxp2016.html (accessed: 26.02.2020).

For the third stage we consider social factors. Social factors of development of organic agriculture are bounded with the unemployment rate of rural people. Organic technologies are known to be more labor-intensive; therefore, one cannot ignore the availability of labor in analyzed regions.

Organic agriculture impacts social sphere of rural territories in different ways. We list several factors.

The development of entrepreneurial activity through diffusion of new organic technologies. Products are to be produced in accordance with organic requirements. Not only new scientific knowledge in fields of botany, biology, and agronomy is necessary, but so are new organic technologies, including organic innovations. As a result, organic farms tend to be more innovative than conventional farms.

The employment of unskilled workers. Currently, the serious social problems of the rural population are associated with the migration of young people to cities due to a high level of unemployment. The crisis period in agriculture that lasted for several years has led to the degradation of the workforce. Organic farms can provide workplaces for people in a plant producing, in dairy farms, and in the harvesting of wild plants. It must be noted that harvesting of wild plants is widely used both in organic agriculture in Russia and in conventional agriculture.

Development of a natural way of life in rural territories. The popularization of natural rural culture in eco-settlements can save Russian national culture. Organic farming diffuses the way of production without chemical fertilizers and other chemical resources. Thus, it goes back to traditional for Russian people natural technologies of food production.

The definition of promising regions for the development of organic production also assumes an analysis of the level of unemployment of rural population in regions. The state of employment in agriculture and unemployment of rural population is shown in Table 2. In Russia, this is equal to 8 % in 2017. We grouped regions into two groups in accordance to the level of unemployment.

Table 2. Groups of Russian regions according to the unemployment rate of rural population, 2017

Based on: The Russian Federal Department of Statistics. URL: http://www.gks.ru (accessed: 12.01.2020).

For the analysis of the unemployment rate, data for the year 2015 were taken, which are now the most relevant. Our use of data on the state of the environment, unutilized agricultural lands, and level of unemployment in Russian regions for different time periods is justified, along with the availability of data, their weak variability in several positions. The desire of the authors to conduct research based on the most relevant data is also determined by the intention to use the obtained results to justify the strategic trends in the development of organic agriculture in Russia.

Integration of ecological, economical, and social parameters of these regions allows us to identify regions where the development of organic agriculture is of the highest priority. We distinguished four groups of regions that comprise in descending order regarding organic agriculture development (Figure 2).

Fig. 2. Grouping of Russian regions according to environmental, productive and social parameters

Group 1 combines the following regions: Republic of Dagestan, Chechen Republic, Altai region. Jewish Autonomous Region, Republic of Kalmykia, Astrakhan' region, Pskov region, Perm' region, Amur region, Ulyanovsk region. The geographical spread of these regions is shown on the Figure 3.

As is shown in Figure 2, regions of group 1 are characterized by a high level of rural unemployment and large areas of unutilized agricultural land (more than 160 thousand ha). They have the maximum potential for the development of organic agriculture, which makes it possible to produce products in large volumes.

Group 3 has an opposite state, with minimal potential for development of organic agriculture among chosen regions. This group consist of following regions: Republic of Ingushetia, Tyva Republic, Republic of North Ossetia-Alania, Karachay-Cherkess Republic, Republic of Adygea, Altai Republic, Kabardino-Balkaria, Republic of Karelia, Komi Republic, Kemerovo region, Kamchatka Territory, The Republic of Sakha (Yakutia), Murmansk region. Their geographical area is shown in Figure 4.

Fig. 3. Russian regions with large area of unutilized agricultural land and the rate of unemployment of rural population above average in Russia (group 1 -- highlighted in black).

Fig. 4. Russian regions with area of unutilized agricultural land lower than average in Russia and the rate of unemployment of rural population lower than average in Russia (group 3 -- highlighted in black)

Fig. 5. Russian regions with a medium potential for development of organic agriculture (groups 2 and 4 -- highlighted in black)

Regions in group 2 and group 4 are in between groups 1 and 3. Group 2 has a lower level of rural unemployment and large areas of unutilized agricultural land. Group 3, in contrast, has got a high level of rural unemployment and not a large area of unutilized agricultural land. As a result, regions in these groups have relatively low potential for organic farming. Regions from group 2 and group 4 include the following regions: Ryazan' region, Stavropol' region, Penza region, Vladimir region, Mari El Republic, Tver' region, Kostroma region, Sakhalin region, Krasnodar region, The Republic of Khakassia, Kursk region, Tambov region, Ivanovo region, Kaluga region, Chuvash Republic, Magadan region, Belgorod region, Chukotka Autonomous region (Figure 5). In a productive aspect, these regions have the medium potential for the development of organic production.

To reveal product specialization of each group of Russian regions it is necessary to clarify product niches of organic agriculture. Product differentiation with regional definition is useful for further analysis for developing strategies for organic agriculture. In accordance with types of products and their role in the supply chain, the authors identified the following niches: 1) organic raw materials for further processing in the food industry and related industries; 2) fresh organic products of short shelf life without processing; and wild collection.

The niche of organic raw materials for further processing needs much agricultural area and labor. This niche includes organic raw materials for food, chemical and light industries, and certainly for agriculture. The supply chain in this niche can be long because the shelf life of these goods is not short. The location of production does not matter for the end consumer, just an ecological state of region of production. Since in this niche a processor plays a key role in the supply chain, the volume of production is restricted only by a processor's capacities and is not limited by the level of effective demand. Moreover, organic raw materials can be delivered for export like conventional ones. The products of this niche can be distinguished by the following categories: organic products for further processing in food industry (berries, fruits, vegetables, meat and milk for conservation), cereals for processing and packaging (wheat, rye, rice, beans), medicinal plants for the chemical industry (medical and cosmetic products from organic raw materials), organic animal feeds for organic farms, and organic textile material.

The niche of organic food with a short shelf life needs production processes oriented to maintaining freshness. The production of fresh food for end consumers requires short supply chain. These are meat and dairy products, fresh vegetables and fruits, berries, and mushrooms. Requirements for this organic food suggest the absence of chemical preservatives, improvers, and dyes. A basic reason for buying organic food is a desire to consume healthy environmentally friendly food. Children, as well as adults with specific diseases, are also included in the consumer group for which a healthy diet is required. The next reason to be certified is trust in the quality of products which can be provided by a direct production process control, as well as the location of the production in an environmentally friendly region.

The third niche is “Organic wild collection”. This group of products is allocated to a separate niche, as a production process is limited to harvesting wild plants, their packaging, and transportation. Currently, up to 8 % of all areas certified in accordance with organic requirements in Russia is set aside for wild collection. We see good prospects for the development of this niche, since large areas of the country are covered with environmentally friendly forests. This, in turn, requires a large labor force. Large areas of unutilized agricultural land are not required, therefore, for the implementation of this niche of organic agriculture, the regions of group № 1 are more suitable.

The differentiation of regional strategies for organic agriculture:

Results and discussion

From out study we can confirm the assumption that strategies for developing organic agriculture in Russia should consider the geographical, economic, and social parameters of regions. Distinguishing four groups of regions allows us to focus development strategies on individual product niches: food with short shelf life and minimum processing, organic raw materials for food and other related industries, and harvesting of organic wild plants and fruits. Such differentiation will enable not only to fully adapt supply chains to the capabilities of its members but also to solve several environmental and social problems.

Large-scale production of organic raw materials is possible. The main limiting factor is processor capacity. At the same time, this niche has great export potential, as the global market for organic products is constantly growing. Russia can occupy a certain market share by selling organic raw materials. Large areas of unutilized agricultural land, which provide a considerable reserve for development of agriculture in Russia as a whole, can be used for organic farming. In this context, with an increase of production in agriculture the costs of reclamation of soil can be considered unavoidable. By using a large amount of manual labor in this product niche, unemployment in rural areas can be reduced.

According to specific features of this niche, regions from group 1 (Republic of Dagestan, Chechen Republic, Altai region. Jewish Autonomous Region, Republic of Kalmykia, Astrakhan' region, Pskov region, Perm' region, Amur region, Ulyanovsk region) are more suitable. As we can see on Figure 3, many regions are near the national border, so the development of exports of organic raw materials can be organized with a minimization of transport costs.

Harvesting wild plants and fruits is a perspective niche, because most territory in the Russian Federation is covered with environmentally friendly forests. The production process consists of harvesting ripened fruits and plants and selling them to further processors. The export potential for organic wild plants is quite high, especially in the Asian region. For this niche, large agricultural areas are not required, as major production areas are in a forest zones. Because of the seasonal involvement of the population for harvesting, unemployment in respective regions may be partly solved. Carrying out regional differentiation in the development of organic agriculture makes it possible to specify organizational activities both from state and business points of view. Regions from group 3 (Ryazan' region, Stavropol' region, Penza region, Vladimir region, Mari El Republic, Tver' region, Kostroma region, Sakhalin region, Krasnodar region, The Republic of Khakassia, Kursk region, Tambov region, Ivanovo region, Kaluga region, Chuvash Republic, Magadan region, Belgorod region, Chukotka Autonomous Region) could provide organic wild collection especially most of them are covered by forests.

Fig. 6. Product niches of organic agriculture according to regional differentiation

Development of organic food production with minimal processing and short shelf life is possible in the form of organizing small organic farms because of requirements to be close to consumers. This form of organization allows minimization or risks associated with production processes and changes in consumer preferences, as well as financial risks due to small production volumes. At the same time, it can provide an impetus to developing innovative entrepreneurship in rural areas through the exchange of positive experience not only in the organic production sector, but also in agriculture. In addition, small organic farms carry out the function of preserving and transferring traditional Russian rural culture using old recipes and methods of farming in production processes. Regions from group 2 and group 4 could be more suitable for development of this product niche. The significant part of these regions is in European part of Russia which is characterized by high effective demand on organic food. Moreover, institutionally European part of Russia is more developed for organic market.

The scheme for producing niches of organic agriculture, given regional differentiation, is shown on the Figure 6.

Summary and outlook

The analysis confirmed the importance of agriculture, using the case of Russia, to achieve objectives of the Paris climate accords and the formation of a stable low-carbon economy oriented to the expanded use of alternative energy and the integrated introduction of technological, organizational, institutional, and marketing innovations. For the agricultural sector, an important role in achieving these goals is the dissemination of principles of organic agriculture, which must be applied in a balanced manner, considering the fulfilment of this sector's entire range of economic, social, and environmental functions. The authors based their research on the modern model of organic farming, “organic farming 3.0”, which is characterized by a shift in emphasis from a purely agricultural perspective to organic production as an agri-food system. An important role in forming the methodological basis of the study was also given to the “European Initiative for Sustainable Development in Agriculture” with its goal to merge the advantages of traditional industrial methods with the requirements of the organic agriculture. The answers to current climate and environmental challenges should be the zone of responsibility not only for the model of organic production but also be consistently addressed within the traditional industrial sector of the Russian agrarian economy.

A successful implementation of the strategy for sustainable development of organic production, however, is less beneficial without the targeted use of digital technologies. The main areas of their application and effects obtained include the following:

• cloud computing and large database technologies, which contribute to the development of precision farming as a key component of the fourth wave of modern, digital, revolution; precision agriculture means applying the precise and correct amount of different resources (water, fertilizer, pesticides etc.) at the correct time to increase crop productivity, maximize its yield and to improve overall environmental performance;

• use of industrial Internet and high-resolution satellite data, which not only can organize online monitoring of the quality of the interconnected technological chains of organic production, but also can contributes to the transparency of business processes, and, as a result, can maintain high quality and consumer confidence in organic products;

• computerization and robotization, which have significant potential in reducing the need for workers engaged in manual operations and the shortage of highly qualified personnel in rural areas;

• active development of digital platforms that facilitate the promotion of organic food by organizing networking between producers and consumers; such platforms reduce the number of intermediaries, combine manufacturers from different regions with minimal transaction costs, help realize economies of scale and reduce the gap between the supply and the demand for organic products in the regional context, etc.

The strategic development of agriculture should aim for its intensive development to meet the growing population's food needs and to increase the country's export earnings with targeted environmental measures. These measures should be coordinated with the tasks of the Paris Climate Agreement in 2015 to prevent irreversible climate change and environmental degradation. Of importance in this context are agriculture-servicing branches, including the production of mineral fertilizers, which are among the priority in terms of reducing greenhouse gas emissions.

The article focused on the model of organic agriculture, which plays a special role in reducing the risk of irreversible climate change and the risks of environmental pollution. For its accelerated development it is necessary, first, to form adequate institutional conditions that support this rapidly developing segment of agricultural production. The preparation of a package of regulatory documents that ensure the implementation of the Federal Law “On the Production of Organic Products” (No. 280-FL) has in modern conditions the greatest relevance. Second, in determining the strategic priorities for the development of organic agriculture, it is necessary to consider the diversity of natural and climatic conditions prevailing in different regions of the country, as well as the availability of appropriate production and socio-economic resources. And third, to achieve the goals of sustainable development, it is recommended to fully realize the potential of digital technologies.

Considering the three dimensions of sustainable development, the paper justified three groups of indicators, namely ecological, economic, and social, that form the basis for classifying regions of Russia to identify those that have the most favorable conditions for developing organic agriculture. Further, the authors suggested possible grocery niches for the development of organic agriculture and the supply chains corresponding to these niches, which can find effective application in the groups of regions that were defined in the article. The recommendations resulting from the analysis carried out in the article may be of interest both for business and for regulating bodies in charge of developing strategies for the organic agriculture in Russian regions.

This study also identifies several issues for analysis in subsequent publications. For sustainable development of organic agriculture, it is essential to balance supply and demand for organic products. Considering the importance of ensuring this balance, our focus was on the supply side. The formation of stable demand for organic products requires further study. These include ensuring the availability of organic food, including through effective social policies and reducing unjustified differentiation in incomes of various segments of the Russian population. The organic food segment also needs special marketing research to increase its export potential.

The next issue regarding the development of organic agriculture is to predict dynamics of GHG emissions. It cannot be said that production of organic products has no negative impact on the environment. Data on the environmental burden of organic farms in comparison with traditional farms is provided in several papers [Williams, Audsley, Sandars, 2006; Schulze, 2014]. There is an ambiguous impact of organic agriculture on GHG emissions. In this regard, it is of interest to simulate these emissions while implementing a strategy of agricultural development, including the organic sector.

There is a significant ongoing discussion in the Russian scientific literature on the need for state support for organic agriculture. Critics are concerned about the inability of this sector to solve the food security problem and provide the population with domestically produced environmentally friendly food. Their position is explained by the lower productiveness of organic agriculture in comparison with traditional. In terms of solving environmental problems, organic agriculture becomes not only a supplier of more environmentally friendly food, but also initiates a significant number of innovations related to the development of environmentally friendly technologies.

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