Methodical principles of the integrational processes of agro-industrial production

Abstract

Scientific approaches to the classification of integration types are under discussion in this article. The prime objective of the studies undertaken was to develop the scientific foundation to specify integration types to agrarian business, their directions and forms, and to generalize scientific approaches to the classification of integration. The development of agro-industrial integration is an intrinsic economic function. This process relates to a social division of labor and its area of concentration. Therefore, we may need to refer to cooperation between the branches of agrarian and industrial production. From here, it follows that in terms of productive forces development, their collaboration, combination, integration, which received a new impetus in the world practice as a result of the latest achievements in the scientific and technological advance, are being observed. Agro-industrial integration allows to agrarian companies to reduce the risk concerning the production, its dependence on environmental conditions, agricultural product market spontaneity, necessity to grow competitive production. Processing and operating companies in agrarian field are also interested in regular income due to firm raw material resources or market outlet and services. Consequently, it is necessary to finalize the directions to implement integration processes. At any time thereafter, determination of directions and forms for integration formation will guarantee to manufacturers (agrarian companies), processing and operating companies of agro-industrial complex, considering all advantages and disadvantages, the alternative for those types of integration formation, which would be viable, subject to the present conditions, and would provide high productive cooperation for agricultural and processing companies.