Introduction. The article examines the theoretical principles and practical approaches to the formation and management of distribution channels of an agricultural enterprise. The necessity of coordination of planning processes and functioning of each participant of the channel of distribution of agricultural products and functions, and, accordingly, the profit, as a reward for their performance, among the participants of the marketing channel is proven. Goal. The purpose of the article is to generalize the theoretical principles and practical approaches to the development of an algorithm for the formation and management of the product distribution channel by an agricultural enterprise with an orientation to long-term partnership between participants. Method (methodology). The following scientific methods of knowledge are used in the article: theoretical generalization, systematization, logical-structural, comparative and cause-and-effect analysis when formulating tasks, conclusions, as well as clarifying the concepts that determine the process and structure of product distribution, substantiating the requirements for the product distribution management model on agricultural enterprise levels; when systematizing and clarifying the principles of management of distribution channels; general scientific methods of research - analysis, synthesis, deduction, induction, formalization of criteria in the development of a management model for the distribution channel of agricultural products. The results. Approaches to the formation and management of product distribution channels are summarized, their advantages and disadvantages are systematized, on the basis of which the most rational algorithm for their formation by an agricultural enterprise is substantiated. The need to take into account the peculiarities of agricultural production and other factors that affect the organization of distribution channels has been proven. When analyzing them, it is advisable to list them in order of decreasing their impact on productivity. In order to evaluate the marketing channel of distribution, it is advisable to form an appropriate system of indicators and set their threshold values. The main principles of distribution channel management are systematized, which will allow implementing a marketing approach in distribution management. Qualitative interrelationships of changes in distribution channel parameters with changes in the resulting indicators of channel functioning have been determined, which should be calculated and given an economic interpretation, with the aim of forming a generalized opinion about the rational structure of the distribution channel and directions for its optimization. The algorithm for forming the distribution channel is substantiated, which is based on the use of the advantages of the analyzed methods and consists of several stages, each of which includes several sublevels and has an iterative nature. It has been proven that when forming a distribution channel, it is advisable to select channel participants and distribute functions among them, and accordingly costs and profits, taking into account the minimization of possible conflicts between participants, which will contribute to the manifestation of a synergistic effect and the formation of long-term partnership relations.