THE CORPORATE ECONOMY IN THE REGIONAL FOOD SECURITY SYSTEM

DOI 10.32651/191-7

Issue № 1, 2019, article № 2, pages 7-12

Section: Program-target management of development of agricultural production

Language: Russian

Original language title: КОРПОРАТИВНАЯ ЭКОНОМИКА В СИСТЕМЕ ПРОДОВОЛЬСТВЕННОЙ БЕЗОПАСНОСТИ РЕГИОНА

Keywords: DISPROPORTIONS OF REGIONAL DEVELOPMENT, ECONOMIC DOMINANCE, FOOD SELF-SUFFICIENCY, CONCENTRATION OF PRODUCTION, REGIONS OF LOCATION, CONDITIONS OF FORMATION, AGRO HOLDINGS, INTEGRATION

Abstract: The consolidation and integration of economic entities is an objective process of the country's economy development, associated with the concentration of capital and the development of productive forces. In the agro food complex, the most common form of integration is holding associations. The functioning of regional agro holdings causes an increase in the region’s self-sufficiency in food. However, the concentration of production in one agricultural holding might lead to economic dominance in the food market. This makes it possible to control the market situation, set high wholesale selling prices for their products and have preferential treatment from regional authorities. However, priorities and interests of agro holdings change over time. They can expand into other geographic markets. At the same time, there are risks of production assets withdrawal from the territory and deliberate bankruptcy. This makes food rations in the region vulnerable. When choosing a region for locating new industries, the potential demand for food, the purchasing power of the population, as well as the business conditions created by the authorities, have a significant impact. Due to the regions differentiation in terms of socio-economic development, interregional agro holdings have a dual influence on the food markets functioning and food security of regions of location. The region, which is a commodity zone, becomes vulnerable to food security. The functioning of federal agro holdings contributes to increasing the country's food self-sufficiency and increasing the export potential of the Russian economy.

Authors: Botkin Oleg Ivanovich, Sutygina Alevtina Sutygina, Sutygin Pavel Fedorovich