Analysis of integration processes in agribusiness and agro-food formation of clusters in Ukraine

Authors: 

Stanasyuk N. S., Olihovsk M. V.

The modern relationships between the units of agro-industrial production during the
transition state of the market economy in Ukraine are analysed. The conclusions about the
creation of favorable conditions for the effective management of the agro-food business are
made, in particular building of the integration food-chains between the agro-enterprises that
have to change the traditional production chains. The creation of agro-food clusters for
combined solution of the development problems of the agrarian enterprises is offered in order
to raise the functioning effectiveness of the entire agro-industrial complex of Ukraine. The
main links of the integration food-chains have become suppliers, manufacturers of agricultural
and industrial production, wholesale and retail businesses that operate as a single system.
Creation of the integration food-chains lead to increase the competitiveness of products,
increase sales and save costs. The main feature of tight integration links between agricultural
enterprises are common interconnection activities and resources, protection of interest and
support initiatives of the subjects, the relationship between organizational units and
employees. In the paper the establishment of integrated structures are proposed, which will
form the farmers from production structure that meets the priority directions of development
of the agro-food sector in the region, what would increase the level of regional agro-food
system. The establishment of regional integrated structures will significantly reduce
transportation costs and minimize business risk. The creation of agro-food clusters for combined solution of the development problems of the agrarian enterprises is offered in order
to raise the functioning effectiveness of the entire agro-industrial complex of Ukraine.