STRATEGY OF AGROHOLDINGS AND FARMS DEVELOPMENT: NEW INSTITUTIONAL FORMS OF ACTIVITY COOPERATION
Issue № 7, 2018, article № 11, pages 71-78
Section: Cooperation and integration
Original language title: СТРАТЕГИЯ РАЗВИТИЯ АГРОХОЛДИНГОВ И ФЕРМЕРСКИХ ХОЗЯЙСТВ: НОВЫЕ ИНСТИТУЦИОНАЛЬНЫЕ ФОРМЫ КООПЕРАЦИИ ДЕЯТЕЛЬНОСТИ
Abstract: In most industries and sub complexes of the agro industrial complex there are processes of horizontal and vertical integration, which increases the risk of monopoly formation at the regional or federal level. Despite the constant attention of government and state support the processes of agricultural producers cooperation in order to overcome the abuse of market power are developing very slowly. At the same time, some of the agricultural holdings have already reached such sizes of production, when a further increase in its scale leads to an increase in costs, while the effect of the scale of processing and logistics is far from exhausted. However, most agro holdings continue to increase production volumes, falling into the trap of the "path dependence". The concept of "interim institutions" considered in the article allows us to reconsider the classical approach to the implementation of economies of scale by both large and small-sized producers. The proposed model for the development of agricultural production on the basis of integration of independent agricultural producers in the production and economic chains of large agribusiness on market principles allows to overcome the negative consequences of the "path dependence" with minimal costs for all participants in the industry. Farmer, while remaining a recipient of income and preserving the possibility of visual control of the production process, provides access to the expert competencies of the agro holding-integrator and loan capital. Agro holdings, without going beyond the effective scale of production of agricultural products, guarantee themselves a market for high quality raw materials at an acceptable price for reproduction, they are able to more fully realize the economies of scale at other stages of the production process, thereby reducing the total costs of final products.