Сборник международной научно-практической



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Сборник зимней школыы 2019

 
Introduction 
The most indispensable and outstanding facet which is ought to be inferred is that the 
comprehending of particular relevance in modern conditions in the construction of an economic 
mechanism that ensures the effective, balanced and stable improvement of the industries that form 
the agro-industrial complex. For the supporting functioning of agriculture, which is represented 
by a sufficiently huge number of large, medium-sized producers, and is subjected to monopoly 
"pressure", both from serving and processing enterprises, and from trading networks, it seems 
necessary to systematically consider the concept of agro-industrial complex. This will allow a 
deeper understanding of the laws, principles, methods, forms of construction and realization of 
effective organization of agricultural production, in cooperation with enterprises in other areas of 
the agricultural complex based on cooperation, and collaboration of new concepts of strategic 
management.
It highly likely to argue that the formation of the agro-industrial complex as a special 
complex of the economy was found in the 70s-80s and due to the processes of agro-industrial 
collaboration, which guarantee the interconnection of those separated from agriculture functions 
for the production and processing of agricultural raw materials on new technical-technological and 
organizational principles. Those processes were associated with major technological advances in 
agriculture: the moving to integrated mechanization, mass pharmacy and land reclamation. It is in 
the field of agriculture integration processes can be exactly seen by the formation of the agro-
industrial complex. Inside of the agro-industrial complex the integration of economic sectors that 
ensure the reproduction of food and industrial consumer goods from agricultural raw materials in 
agreement with the needs of society and the requirement of the population. In general, the 
following forms of integration links in the agro-industrial package can be differentiated: 
- association of rural producers for the organization of processing industries; 
- unification of processing enterprises and commodity producers for joint processing and 
sales of products 
- the formation of inter-district associations of the regional (margin, regional) level; 
- the creation of agro-industrial formations by enterprises and organizations of various 
industries. 
The meaning of the agro-industrial aggregate of collaborated structure that includes all 
sectors of the economy involved in the production of agricultural products, their processing and 
bringing to the consumer. With a view to a deeper understanding, in table one, a number of 
definitions of the agro-industrial complex are systematized. 


263 
Although, it must be underlined that the examine concepts of the “agro-industrial complex” 
emphasize the essentially significant line as “an aggregate or complex of industries”, which, in our 
point of view, makes it possible to treat the agro-industrial complex as an economic and legal 
system based on the functional interaction of economic sectors. The economic legal approach to 
understanding the agro-industrial complex makes it possible to build a management mechanism 
based on the principles of a system-value ,indeed, cluster approach, highlighting strategically 
important zones. 
From those context ,it can easily be inferred that, the value chain is a method of classification 
from feedstock to final consumers by strategically important activities, which is intended to 
understand the sources of costs and sources of differentiation . Each step of the chain has its own 
optimal scale, consequently, additional value takes place in various organizations, companies, 
firms or divisions of a large industry corporation. 
It is common phenomenon and idisputable fact that the activities of a particular organization 
are considered in relation to the value chains of suppliers and consumer value chains. J.Foster, 
H.Horngren, S.Datar value system is called the supply chain and is comprehended as the flow of 
goods, services and information, passing from the initial link (the initial producer) to the final 
(final consumer) .In the most common form, the value system of the agro-industrial complex can 
be represented as the economic basis of its functioning, which is shown in first picture. 
Simply saying, the agro-industrial complex is distinguished by a high degree of 
differentiation of types of activity and the complexity of interrelationships of all subjects, 
therefore, there is a huge potential to optimize and streamline the value system itself. Integration 
and coordination of actions of all parts of the chain involved in the process is a problematic 
managerial aspect in the value system. A strategically vital zone in the value system of the agro-
industrial complex is agricultural production, it is impossible to store, process and sell that which 
is not produced. At the same time, agricultural production cannot exist without modern agricultural 
technologies, agricultural equipment, seeds, and other necessary activities that ensure its normal 
and effective functioning. 
Simply saying, the agro-industrial complex is distinguished by a high degree of 
differentiation of types of activity and the complexity of interrelationships of all subjects, 
therefore, there is a huge potential to optimize and streamline the value system itself. Integration 
and coordination of actions of all parts of the chain involved in the process is a problematic 
managerial aspect in the value system. A strategically vital zone in the value system of the agro-
industrial complex is agricultural production, it is impossible to store, process and sell that which 
is not produced. At the same time, agricultural production cannot exist without modern agricultural 
technologies, agricultural equipment, seeds, and other necessary activities that ensure its normal 
and effective functioning. 


264 
Pic. 1
. Scheme of concepted formation in agro-industrial complex 
And the production itself does not exist for the sake of the production of the product, but for 
the end user, which is formed in the integration interaction with other valuable activities.
integration of valuable activities is a legal aspect of the functioning of the agro-industrial complex 
and it is implemented in various forms. 
At the present, integration processes are actively developing in the Kazakhstan, Russian 
Federation etc. In order to understand the reasons for the increased activity, it is necessary to 
determine the advantages that integrated structures receive over farms not participating in 
integration processes. First of all, in terms of the integrated formation of the agro-industrial 
complex, it has more opportunities to increase production efficiency, owing to: 
- optimal use of all resources; 
- independence from suppliers of raw materials; 
- organization of diversified production; 
- cost optimization;
- increasing the number of jobs; 
- improving the infrastructure of rural settlements;
- reduction of migration of the working population; 
Agro-industrial integration as a whole will allow to connect the economic interests of all 
agricultural producers and participants of the value system. As well as it will allow building a 
mechanism for managing the agro-industrial complex which basis in such concepts as the 
formation of an agro-industrial cluster and highlighting the “growth pole” with regard to the 
territorial and branch specifics. 


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