Development strategy of vertically integrated agro-industrial companies as a pricing tool for food products

Abstract

In connection with the current trends in the agro-industrial conjuncture, it is becoming increasingly urgent to solve the problem of ensuring the economic security of the state, the financial and economic recovery of industry-forming enterprises and the welfare of the population. Taking into account the high interest in the transformation of food markets, the object of this study was the internal management strategies of large agro-industrial companies. The subject of the study is the mechanism of food pricing by regulating the value chain in agricultural holdings of the full production cycle (having a vertically integrated organization of the operational and production process). The article provides an analysis of changes in the price index for socially significant food products for the period 2020–2021 and its impact on the cost of a minimum set of food products, which is considered an important indicator of the standard of living of the population and in the current situation accounts for an excessively high proportion of the average income of citizens. To solve the identified problems and ensure a high level of food security, a mechanism for managing the development strategy of vertically integrated agro-industrial companies is proposed as a way to achieve the minimum cost of finished products and rational management of its creation chain. Due to the closed production cycle, agro-industrial companies offset the negative impact of external factors on pricing, and are also more independent of suppliers of raw materials and in matters of the organization of operational activities. The practical significance of the research is to develop and substantiate ways to reduce social tension and provide the population with socially significant, high-quality and affordable food by reducing the cost of producing agro-industrial products while creating and developing a vertically integrated organization of the production process.