FOOD RESOURCES 2019. Issue N 12. Article 19

19. DEVELOPMENT OF AGRICULTURAL INTEGRATION IN FOOD INDUSTRY
 
Sychevskyi M., Kovalenko O., Lukashenko N., Yurchenko N.
Pages: 168-183
 
Abstract
The subject of the research is the processes of formation and development of integrated formations in the agricultural and food sector. The aim of the research is to identify the features and benefits of agro-industrial integration for food processing enterprises, to justify the directions and mechanisms of influence of integrated formations on the market conditions of individual sectors of the food industry. Methods: system generalization, analysis and synthesis, calculation and analytical, comparison, graphic. Research results. The economic content of the agro-industrial integration has been determined, three types of it have been identified (horizontal, vertical, diversification), the expediency of vertical integration in the agro-industrial complex, which covers the entire food chain, has been proved. The benefits that participants in the integrated formation receive are identified. The organizational structure of the association for the production of milk and dairy products is reasonably justified. The directions and mechanisms of the influence of integrated formations on the situation of the market of products of the milk processing and sugar industries are established, companies' ratings are presented in terms of production volumes and revenues in these areas. It has been proven that the formation and development of integrated associations contributes to restoring broken economic ties, strengthening the resource base, providing guaranteed conditions for the supply of raw materials and finished products, improving the technological level and capacity utilization, expanding sales markets, reducing business risks and costs, and increasing competitiveness in the domestic and global market. Scope of application of research results. The research results are of a scientific and practical nature and can serve as a source of reference information on agro-industrial integration in the food industry. They can be the basis for further research and decision making on state support for the development of the main branches of the food industry. The presented analytical materials will be useful to economists and specialists of enterprises of the food and processing industry, specialists of government bodies, researchers, teachers, graduate students and students of higher educational institutions.
 
Key words: integration, integration processes, food industry, agroholding, development, milk processing industry, sugar industry
 
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