THE FORMS OF INTERACTIONS AMONG THE SUBJECTS OF AGRO-INDUSTRIAL INTEGRATION

DOI 10.32651/197-53

Issue № 7, 2019, article № 10, pages 53-59

Section: Cooperation and integration

Language: Russian

Original language title: ФОРМЫ ВЗАИМОДЕЙСТВИЯ СУБЪЕКТОВ АГРОПРОМЫШЛЕННОЙ ИНТЕГРАЦИИ

Keywords: INTEGRATION, VERTICAL INTEGRATION, AGRO-INDUSTRIAL INTEGRATION, INTEGRATED FORMATIONS, ECONOMIC CLUSTERS

Abstract: Agro-industrial integration is a natural form of interaction among economic entities, economically, technologically, and organizationally united in a single product chains, covering all their links: from the production of agricultural raw materials to the production and sale of final products. Integration relations are traditionally considered in the context of three components: technological, economic, and organizational. Agro-industrial integration is a classic case of vertical integration associated with ensuring the interaction of economic entities operating at different stages of the formation of the final product values in the agri-food complex. It is proposed to consider sets of incentive causes, constraints and risks, directions, types, and forms of integration as the essential characteristics of vertical agro-industrial integration. Territorial product clusters are recognized as an effective form of organizing the subjects’ interaction in agro-industrial integration, within which the integration relations reach the fundamentally different level as a result of the emergence of conditions ensuring the mutual benefit of cooperation between the integrating subjects and the realization of a complex of their economic interests based on a fundamentally different system of inter subjective relations and "soft" governmental impact on the processes of intra cluster interaction. The cluster model for the integration relation development is considered the most promising form of development of agri-food systems, and clusters are viewed as the optimal tool for creating the system of inter-subject relations between participants in the agro-industrial integration interacting within the boundaries of localized economic areas. The use of the advantages of territorial concentration and the possibility of establishing strong and long-term formal and informal relations among the economic integration subjects objectively determine higher flexibility of cluster structures and the efficiency of functioning of all their elements.

Authors: Makarevich Liliia Olegovna, Ulezko Andrei Valerevich, Reimer Valerii Viktorovich