Doctor of  Science (in Economics) Velychko O. P.

Dnipropetrovsk State Agrarian and Economic University (Ukraine)

Doctor habil. Ramanauskas J.

Klaipeda University (Lithuania)

EVOLUTION OF PRODUCTION-LOGISTICS SYSTEM IN AGRIBUSINESS

 

This issue is extremely essential for Ukraine nowadays, especially under the circumstances of integration towards economy of the European Union, formation and development in a new structure of agriculture, increase in producing capacities and export of food produce as well as increase in total role of agrarian sphere for the economy. Agrarian sector is one of the few sectors in economy of Ukraine which during different crises succeeded in keeping stability of its own development in fact on the background of general economic recession. At that the potential of agrarian enterprises at world markets has not been completely realized yet [1].

The attraction of the agrarian business in Ukraine during the last few years has been actively growing. According to FAO Ukraine is considered to be among the five most prospective agrarian countries. Furthermore demand and prices for food produce have been growing steadily at world markets during the last time. Under those conditions the effective task to develop agriculture is its further intensification and harmonization. It is also necessary to create integrated production-logistics systems which provide economical steadiness and stability for development of agricultural entrepreneurship [2].

It is worth paying attention that features of agribusiness to a big extent are connected with specific missions of different forms of entrepreneurship in organizational structure of agriculture. Among them in agrarian sphere of the world economy the most distinct ones are private-corporate and farming-cooperative forms of activity. Both of them have the right to exist at the same time and carry out different useful functions. Owing to that the agrarian sphere in most developed countries is not viewed exclusively as a producer of food and a source of income to state budget but it is viewed as a complex social-economical system focused at the same time both on economical, ecological and social development of agrarian territories.

At that in the system of producing either of these forms tends to enlarge the process of land utilization with the purpose of applying economic advantages or effects from scales of agricultural business. But reaching the same aim is carried out using absolutely different ways: through rent relations and concentration of private capital as well as democratic unions of many producers for common performance of producing functions.

Negative traits are evident both in organization of logistical activity of different forms of agricultural entrepreneurship. Besides in corporate agrilogistic consequent stages of supply, maintenance of production and distribution are located within control from one side or several sides, and in cooperative – logistical chain is controlled through democratic management and multiple equal co-ownership. The purpose of the former is to maximize corporate financial results, while the purpose of the latter is to minimize logistical costs and increase in profit for members of the cooperative.

At that complex grounding of solutions and estimation of risks is an essential component of effectiveness in the system of state management in modern conditions. Such an issue becomes essential during the mentioned transformational changes in the society. An example of that could be the experience of carrying out agrarian reform in Ukraine in the second half of the 1990s.

Considering the mentioned above the research on the process of transformation and development of production-logistics enterprises in agrarian sector of economy of Ukraine is a very actual and important topic [3].

 

The list of references:

1. Abromavičius looking for markets agricultural sector in the west (2015) [Åëåêòðîííèé ðåñóðñ]. Ðåæèì äîñòóïó :  http://www.ukrpole.com/en/news/abromavichus-ishet-rynki-sbyta-agrarnogo-sektora-na-zapade

2. Ramanauskas, J. & Stašys, R. (2015) Review of the Monograph by Oleksandr Velychko “Logistics in the System of Management of Enterprises in Agrarian Sector of Economy”, Management Theory and Studies for Rural Business and Infrastructure Development, Vol. 37, No. 4, pp. 598-602. DOI: 10.15544/mts.2015.51 [Åëåêòðîííèé ðåñóðñ]. Ðåæèì äîñòóïó :  http://mts.asu.lt/mtsrbid/article/view/973

3. Velychko O., Velychko L. & Ramanauskas, J. (2016) Transformation and development of production-logistics enterprises in Ukrainian agrarian economy, Management Theory and Studies for Rural Business and Infrastructure Development, Vol. 38, No. 1, pp. 70-87. DOI: 10.15544/mts.2015.51 [Åëåêòðîííèé ðåñóðñ]. Ðåæèì äîñòóïó :  http://mts.asu.lt/mtsrbid/article/view/973