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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.
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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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