Agrarian provision integration in the sector of livestock production: state, tendencies and results
Mudrak R.P., Doctor of Economics, , Uman National University of Horticulture
Випуск №92. Частина 2
The material base of agroindustrial integration is the detailed public division of labor on the fundamentals of specialization and cooperation. It is based on the action of fundamental economic laws - competition, increase in labor productivity and saving of the amount of the production.
The law of competition needs the continuous search of means of increase in labor productivity from subjects of economic activity. At first it can be achieved with the help of the detailed public division of labor.
The scale of the production can increase the effect of the last one – allows to achieve the minimum expenses in case of maximum amounts of production in every price level on factors of production, the end product and in case of available effectiveness of employment of resources.
Cooperation – is logical continuation of formation, functioning and development of narrow-specialized technological chains, which begin from the production of raw material and end by their processing and production of ready produce.
That’s why the formation and functioning of interdepartmental complexes is the objective condition of competitiveness of public production.
1) in livestock branch of domestic agricultural enterprises there is still the process of recession – in 2016 the production of gross output (in constant prices) was 52,6 % in comparison with 1990, and the highest index in 2013 was 56,1 % in comparison with 1990.
2) one of the negative consequences of crisis of livestock sector of agricultural production was the end of relationships between agricultural producers of livestock raw material and industrial enterprises of their processing.
3) during the last years since 2013–2016 there has been the decrease in the amount of cattle for the enterprises that can process these products. The dairy production has had the same problem since 2007. It indicates the continuing of the process of reducing the traditional vertical relationships between enterprises of dairy and meat subcomplexes of agro-industrial complex.
4) since 2010 there has been the positive tendency to renovation of relationships between agricultural enterprises and milk-processing plants due to the reduced rate of milk that can be taken for processing from private farms.
5) there is an immediate growth of the value of alternate canals of supply of livestock raw materials to industrial enterprises – it was taken for processing of selfmade raw material. In 2016 its rate was 75,7% of the whole cattle that was taken to processing enterprises and it has increased for the last 5 years to13,8 p.p. More than 70 % of produce due to this canal is poultry meat. We can admit that live poultry that come for processing due to the canal, was self-produced output.
6) in poultry sector of meat produce subcomplex of agroindustrial complex, the traditional relationships between branches among separate and financially independent agricultural and industrial producers were gradually transformed to vertical ones due to the technological aspect of the relationship between structural branches of the leading company-agroholding.
7) Ukrainian market of poultry meat is in general the state market due to aspects of oligopoly at the level of production. Due to the amount of poultry meat production the most active producers are joint-stock partnership «Myronivka bakery» and «Agromars complex».
8) in the future we can wait for the increasing rate of poultry meat which is produced by agroholdings in home market. It increases the risks of definition of non-competitive monopoly (monopoly high) prices and it demands the increasing attention from the Antimonopoly Committee, the Committee of protection of consumers rights and nongovernment public organizations to the results of actions of these companies.