THEORETICAL FUNDAMENTALS OF THE ESSENCE AND CONDITIONS OF OCCURRENCE OF ASSOCIATED FORMS OF AGRICULTURAL BUSINESS

Abstract

The article reveals the essence and features of the associated forms of agribusiness, economic content and prerequisites for entrepreneurial activity in the agribusiness system, socio-economic preconditions for the emergence of associated forms of agribusiness in the vertical integration of producers. It is proved that the final stage of agrarian reform in Ukraine should be characterized by a high level of civilization of business relations, further integration and formation of associated forms of agrarian business, development of business structures in serving the needs of agriculture, rural population, employment. Vertical integration as the basis of agrarian business leads to the emergence of agricultural cooperatives as a form of pooling the capital of entrepreneurs interested in achieving certain socio-economic results that can only be achieved through joint action. Based on the study, it was concluded that the more the producer pays attention to the development of agricultural production, the less time and opportunities he has to operate effectively in other, related areas. Thus, the development of production for the commodity producer naturally becomes an alternative to successful market activity, which, ultimately, determines the efficiency of the entire economy. In view of this, the problem of combining production and market activities, agricultural producers can solve by reaching such a level of production that will allow to maintain their own specialized supply services and sales networks, processing and other enterprises. However, there is an optimal size of production, and the growth of agribusiness is not necessarily more efficient and effective, the diversification of activities impairs manageability. The second way to find opportunities to combine production and market activities is to use the services of market intermediaries on a contractual basis. Since all intermediaries work for profit, the interests of the producer are in conflict with the interests of intermediaries. In contrast to the first two, the third way in which agricultural producers can not only ensure the harmony of production and market activities, but also become equal, competitive market participants – is the way of vertical integration and creation of associated forms of agricultural business to penetrate into agricultural production of the sphere of activity to ensure control over the movement of products created in the economy and to make a profit.