The state of the food market : new signals and old problems

The current situation in the agro-food market is characterized by, on the one hand, the differentiation of food market saturation, and on the other hand, by a reduction in consumer demand. The fall of the real incomes of the population has led to lower consumer demand and an increase in the share of food expenditures in households, which is shown by an analysis of regional statistics. The recent rise in food prices casts doubt on the usefulness of protectionism. The author argues that protectionist policies should not lower the standard of living of the population, but rather combine market mechanisms with appropriate and timely support for those industries that are characterized by growing profitability and high investment return. Arguments are presented for utilizing “green box” tools (in particular, the food stamp program) and for lifting the embargo on food imports and differentiating between export and import customs duties, depending on the degree of market saturation and the formation of domestic markets.