Models of agrarian business development in international practice

Abstract

In conditions of the world economy globalization, regional trade and economic integration of countries, and increased sectoral competition, agricultural business remains a strategically important branch of the national economy of any state. Its activities are based on the regulatory legal framework for creation and functioning of agro-industrial complex entities, state regulation and support of agriculture, development of rural areas, food export incentive, formation of external and internal trade infrastructure. The world agrarian economy demonstrates the use of various models of efficient agro-industrial production management, providing for solution of national food security and increasing the export potential of the industry. The paper presents typology of agriculture by types of land use at various levels of social and economic development of countries, identifies the main world producers, exporters and importers of agri-food products. Review of the state regulation system and support of commodity producers in Australia, Argentina, Brazil, the European Union, India, Indonesia, Canada, China, Russia, and the United States has been carried out taking into account implementation of the international rules of the World Trade Organization. Various types of agricultural business models, sales systems, depending on production specialization of individual states, regions, enterprises and aimed at development of vertical integration, combination of marketing and logistics functions within one company, changes in the commodity structure along the sales channels in the domestic and foreign markets, have been systematized. The competitive advantages of the Republic of Belarus in the context of development of priority areas of agricultural business have been substantiated and the key risks having significant impact on the strengthening of production, sales and export potential have been analyzed. The issues Covered in the paper are of interest in preparation of draft state programs for social and economic development of the national agro-industrial complex, strategy in the field of export of agricultural products and food products for the period up to 2025.