Theoretical Bases of Development of Agro-Product Integration Relations
Hutorov A. O.

Hutorov, Andrii O. (2019) “Theoretical Bases of Development of Agro-Product Integration Relations.” The Problems of Economy 3:37–46.
https://doi.org/10.32983/2222-0712-2019-3-37-46

Section: Economics and national economy management

UDC 334:001.8

Abstract:
The aim of the article is to generalize and systematize the theoretical bases of development of agro-product integration relations. The genesis of integration of products is investigated, its relationship with value chains is shown. The principles of the implementation of agri-product integration relations are generalized. The interconnection of the production typology of agricultural manufacturers and agri-product integration is established. Organizational and economic basis for realizing the strategic potential for the development of product integration relations in the agricultural sector of the economy, the basis of which are the production typology and economic classification of agricultural producers, are enhanced. This, along with improving closed value chains, leads to the formation of an integrated system for organizing and locating agricultural production, the main link in reproduction of which, at the micro level, are integrated business entities, at the meso level – professional production associations and clusters, at the macro level – the agri-food sector, at the mega level – global production networks. A continuum of agro-product integration strategies is formed (full integration, partial integration, quasi-integration, non-integration, franchising), conceptual schemes for their implementation are developed. The integrity coefficient of the chain of creating surplus value is proposed as an indicator of the development of agro-product integration relations.

Keywords: agro-product integration, integration relations, value chain, strategic integration potential, agricultural sector.

Fig.: 8. Formulae: 1. Bibl.: 14.

Hutorov Andrii O. – Doctor of Sciences (Economics), Professor, Chief research scientist, Department of Organization of Management, Public Administration and Administration, National Science Centre «Institute of Agricultural Economy» (10 Heroiv Oborony Str., Kyiv, 03680, Ukraine)
Email: Gutorov.Andrew@gmail.com

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