The structure of the agro-industrial complex

The agro-industrial complex is characterized by specific complexity. The ratio of industries that make it up determines its structure. This structure must be considered from different angles due to the multidimensionality of the subject of our study.

For example, the organizational and economic structure of the agro-industrial complex contains three areas:

• industries that produce means of production for all parts of the agro-industrial complex;

• direct agriculture producing food and raw materials for agriculture;

• industries that ensure the supply of agricultural products to the consumer (this includes: procurement, processing of these products, their storage, transportation and, directly, sales). These sectors include the following[4]:

§ food;

§ meat;

§ dairy;

§ fish;

§ flour and cereals;

§ mixed fodder;

§ light industry, which operates on agricultural raw materials;

§ trade in food products, selling agricultural products.

In addition, a separate area that does not have any industry affiliation is the production and social infrastructure that directly creates the conditions for the production of agricultural products, and, of course, the livelihoods of people, farmers. Here you can name the road transport economy, communications, logistics, storage system, warehouse and container management, industries of the non-material sphere of production, and the like. It is also significant that the infrastructure includes elements that, as a rule, cannot always be attributed to production. But the truth is, from the point of view of the approach that considers the economy as a whole, the social structure is just as inseparable, organically fitting element as the production structure. This thesis has a place to be, since it is the social infrastructure that determines and ensures the reproduction of the labor force[5].

For a more complete understanding, we give a description of each of the above areas of the agro-industrial complex.

The first are the following branches of industrial production:

• tractor and agricultural engineering;

• mechanical engineering for fodder production;

• microbiological industry;

• mechanical engineering for light industry;

• mechanical engineering for the food industry;

• mechanical engineering for animal husbandry;

• production of mineral fertilizers;

• repair and maintenance of fixed assets for agricultural purposes;

• rural construction;

• production of chemical fertilizers and other means of chemicalization, as well as means used for plant protection;

• agricultural aviation and the like.

The share of this sphere of the agro-industrial complex in the total volume of agricultural products is determined on the basis of an analysis of investments made by agricultural enterprises of all forms of ownership and accrued depreciation. According to experts, the share of the sphere of industries that produce means of production for agriculture in the final agricultural product ranges from 1/6 to 1/5. The area under consideration employs from 15 to 20% of all labor resources of the agro-industrial complex, up to 15% of non-current assets[6].

The second area is directly agricultural production. Here, from half to two thirds of the entire production potential of the agro-industrial complex and labor resources are employed. The discrepancy between prices for agricultural products and products of industries that produce means of production for the agro-industrial complex, as well as a significant disorder in the relationship of agricultural enterprises with trade and public catering organizations, has recently caused a tendency to reduce the share of directly agricultural production in the cost of the final one. The considered sphere of the agro-industrial complex includes two large branches: crop production and animal husbandry. In turn, each of them is structured into a number of sub-sectors. For example, in the crop industry, such sub-sectors are distinguished as: grain production; potato growing; flax growing; vegetable growing; beet growing; fodder production, etc. In general, depending on the chosen methodology of the approach, several dozen sub-sectors can be distinguished in the second sphere of the agro-industrial complex.

Enterprises and organizations that are engaged in the storage, processing, transportation and sale of agricultural products are classified as the third area of the agro-industrial complex. This area includes the following industries: dairy, meat, food, textile, footwear, transport services, trade services, and the like. It should be noted that most of the industries of the third sphere are predominantly characterized by multifunctionality. For example, freight transport, in the absence of agricultural goods, can relatively easily be re-profiled for the transportation of other types of goods, the textile industry, in turn, can carry out its work on imported raw materials, and the shoe industry on synthetic. Therefore, the attribution of this set of listed industries to the unified system of the agro-industrial complex is considered possible only when it can be sufficiently profitable. On the other hand, all agricultural enterprises, as a rule, are characterized by a limited choice of appropriate enterprises of the third sphere. This may lead to unjustified underestimation of purchase prices and the inclusion in the text of business contracts of conditions that can put service enterprises in a more advantageous position than manufacturing enterprises.

The reproductive and functional structure of the agro-industrial complex includes five stages of agro-industrial reproduction. These stages include:

• production of means of production;

• agricultural production;

• production of food, consumer goods from

agricultural raw materials;

• production and technical maintenance of all stages of the reproduction process;

• sale of the final product of the agro-industrial complex to the consumer.

The reproductive and functional structure of the agro-industrial complex determines the relationship between the main technological production stages of the final product of the agro-industrial complex and the role of each of these stages in the formation of its value. As the main direction of improving the reproductive and functional structure of the agro-industrial complex, we can single out the optimization of the proportions of development between individual stages and all stages of a single process of reproduction of the final product of the agro-industrial complex, taken in aggregate. The experience of the most developed countries of the world shows that the highest level of output of the final products of the agro-industrial complex (namely: food, clothing, footwear, fabrics) per capita, as a rule, is obtained where, in the structure of the complex, the share of industries that process agricultural products economy, much higher[7].

The territorial (regional) structure of the agro-industrial complex consists of the association of certain industries within a specific territory, that is, on the scale of any republic, region and district. Territorial agro-industrial complexes of districts and regions, in turn, act as constituent elements of a single agro-industrial complex of the region. Their main function can be called the optimization of the production sizes of agricultural and industrial products from agricultural raw materials of their own production for the needs of the population living in a given territory, and for sale and exchange with consumers of other regional agro-industrial complexes. A distinctive feature of regional agro-industrial complexes is that the specialization of agricultural production in a particular region has a significant impact on the specialization of their agro-industrial complexes.

• The product and raw material structure of the agro-industrial complex consists of: a food complex and a complex of non-food products. The food complex includes the following subcomplexes:

• grain products;

• potato products;

• beet sugar;

• fruit and vegetable canning;

• vodka and wine-making;

• meat;

• dairy;

• oil and fat.

The complex of non-food products includes the following sub-complexes:

• stern;

• textile;

• leather;

• fur, etc.

Each of these complexes and sub-complexes consists of enterprises specializing in the production of means of production, agricultural raw materials and their industrial processing, storage and sale of finished products.

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