Integration and Diversification in Modern Agribusiness

Abstract

The processes of agro-industrial integration and diversification are actively developing, take on new forms, and increase the functioning efficiency of individual agricultural enterprises and the agro-industrial complex [AIC] as a whole. The authors consider the regularities in the development of agricultural integration, the benefits of integrating agricultural production, and the processing of raw materials into finished products. Depending on the business environment, various organizational forms of integration are used with varying degrees of economic and organizational ties (from partial interaction of sub-sectors to a full-scale production chain). Currently, the basis of the national economic security of domestic agriculture is the development of high-tech production and the activation of innovative high-tech processes. Along with the introduction of new technologies and technical means, diversification is of great importance, i.e., the development of new industries related to the refinement and processing of products into ready-to-use products, along with the traditional production of agricultural raw materials. The free market establishes the volumes, nomenclature, and assortment of products. The economic significance of diversification processes in modern agribusiness is considered. The authors analyze the prerequisites and motives for diversification and its types to increase the economic viability of business. The measures for processing poultry meat into semi-finished products in a poultry farm are proposed.