Abstract

In order to ensure the region's population with food promising direction of development of agro-industrial complex is the vertical integration. The article summarizes foreign experience of vertically integrated structures formation in the agro-industrial complex. Special emphasis is made on the methods and ways of small agriculture producers’ integration into agro-business. Authors studied the indexes of the current condition and agro-industrial complexes (AIC) development tendencies in the EU countries, agro-holdings dynamics, as well as the structure of used farmland in the EU countries. Authors also present the results of the largest multinational corporations’ activity, formed due to active integrating processes in agro-business sphere. Authors underline the peculiarities of integration bonds formation in the EU countries’ agro-industrial complex. The author believes that the further development of the vertical integration depends on the process of institutional mechanisms perfection. They provide the enlargement of small farms’ participation in the present-day AIC market.

Highlights

  • 1.1 The Concept and EssenceAgro-industrial complex (AIC) is one of the main generators of employment and profit and plays the major role in food provisions manufacture and the problems of undernourishment solvation

  • Agro-industrial complex is a combination of industrial branches dealing with production, processing and sale of agricultural products as well as of the branches serving functioning of agricultural enterprises including agricultural machinery

  • The main condition of agro-business activation can become the development of integration processes

Read more

Summary

Introduction

Agro-industrial complex (AIC) is one of the main generators of employment and profit and plays the major role in food provisions manufacture and the problems of undernourishment solvation. Agro-industrial complex is a combination of industrial branches dealing with production, processing and sale of agricultural products as well as of the branches serving functioning of agricultural enterprises including agricultural machinery. The term ‘agro-business’ stands for collective entrepreneur activity in the sphere of agro-industrial complex (AIC), including supply of agricultural raw materials, manufacture and processing of agricultural products and its distribution among the final consumers. Joining up of the enterprises, participating in different kinds of activity in AIC field, allows to use various kinds of resources (manufacturing, financial, investing, human resource, raw materials and others) more effectively, to use the scientific technical potential, to provide competitiveness of agricultural production and food products

Methods
Results
Discussion
Conclusion
Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call