Organizational development of agro-industrial complex on basis of cooperation and integration
Expediency of organizational development of the agro-industrial complex of the economy on the principles of cooperation and integration has been proved. This allows to improve organizational and economic relations between enterprises of the agriculture and food industry. Two approaches have been gro...
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nasplib_isofts_kiev_ua-123456789-1148982025-02-23T20:01:03Z Organizational development of agro-industrial complex on basis of cooperation and integration Організаційний розвиток агропродовольчого комплексу на засадах кооперації та інтеграції Организационное развитие агропродовольственного комплекса на основе кооперации и интеграции Ivanov, S. Perebyynis, V. Oleksenko, L. Svitlychna, A. International and Regional Economics Expediency of organizational development of the agro-industrial complex of the economy on the principles of cooperation and integration has been proved. This allows to improve organizational and economic relations between enterprises of the agriculture and food industry. Two approaches have been grounded: the first is based on the developed raw material basis; the second is limited with a lack of agricultural raw materials. The model of cooperation of agricultural enterprises and enterprises of the food industry has been formed. Доведено доцільність організаційного розвитку агропродовольчого комплексу економіки на засадах кооперації та інтеграції. Це дозволяє удосконалити організаційно-економічні зв’язки між підприємствами сільського господарства та харчової промисловості. Обґрунтовано два підходи: перший, що ґрунтується на розвиненій сировинній базі; другий, що обмежений недостатньою кількістю сільськогосподарської сировини. Сформована модель кооперації сільськогосподарських підприємств і підприємств харчової промисловості. Доказана целесообразность организационного развития агропродовольственного комплекса экономики на основе кооперации и интеграции. Это позволяет усовершенствовать организационно-экономические связи между предприятиями сельского хозяйства и пищевой промышленности. Обосновано два подхода: первый, основанный на развитой сырьевой базе; второй, ограниченный нехваткой сельскохозяйственного сырья. Сформирована модель кооперации сельскохозяйственных предприятий и предприятий пищевой промышленности. 2016 Article Organizational development of agro-industrial complex on basis of cooperation and integration / S. Ivanov, V. Perebyynis, L. Oleksenko, A. Svitlychna // Економічний вісник Донбасу. — 2016. — № 4 (46). — С. 41–46. — Бібліогр.: 8 назв. — англ. 1817-3772 https://nasplib.isofts.kiev.ua/handle/123456789/114898 338.43:334+664 en Економічний вісник Донбасу application/pdf Інститут економіки промисловості НАН України |
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International and Regional Economics International and Regional Economics |
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International and Regional Economics International and Regional Economics Ivanov, S. Perebyynis, V. Oleksenko, L. Svitlychna, A. Organizational development of agro-industrial complex on basis of cooperation and integration Економічний вісник Донбасу |
| description |
Expediency of organizational development of the agro-industrial complex of the economy on the principles of cooperation and integration has been proved. This allows to improve organizational and economic relations between enterprises of the agriculture and food industry. Two approaches have been grounded: the first is based on the developed raw material basis; the second is limited with a lack of agricultural raw materials. The model of cooperation of agricultural enterprises and enterprises of the food industry has been formed. |
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Article |
| author |
Ivanov, S. Perebyynis, V. Oleksenko, L. Svitlychna, A. |
| author_facet |
Ivanov, S. Perebyynis, V. Oleksenko, L. Svitlychna, A. |
| author_sort |
Ivanov, S. |
| title |
Organizational development of agro-industrial complex on basis of cooperation and integration |
| title_short |
Organizational development of agro-industrial complex on basis of cooperation and integration |
| title_full |
Organizational development of agro-industrial complex on basis of cooperation and integration |
| title_fullStr |
Organizational development of agro-industrial complex on basis of cooperation and integration |
| title_full_unstemmed |
Organizational development of agro-industrial complex on basis of cooperation and integration |
| title_sort |
organizational development of agro-industrial complex on basis of cooperation and integration |
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Інститут економіки промисловості НАН України |
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International and Regional Economics |
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| citation_txt |
Organizational development of agro-industrial complex on basis of cooperation and integration / S. Ivanov, V. Perebyynis, L. Oleksenko, A. Svitlychna // Економічний вісник Донбасу. — 2016. — № 4 (46). — С. 41–46. — Бібліогр.: 8 назв. — англ. |
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Економічний вісник Донбасу |
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| fulltext |
S. Ivanov, V. Perebyynis, L. Oleksenko, А. Svitlychna
41
Економічний вісник Донбасу № 4(46), 2016
UDC 338.43:334+664
S. Ivanov,
DrHab (Economics), Academician of the Academy of Economic Sciences of Ukraine,
“International Centre of Research of Social and Economic Problems
of Cooperation Modernization and Development“,
V. Perebyynis,
DrHab (Economics), Academician of the Academy of Economic Sciences of Ukraine,
L. Oleksenko,
PhD (Economics),
Poltava University of Economics and Trade,
А. Svitlychna,
PhD (Economics),
Polatva State Agrarian Academy
ORGANIZATIONAL DEVELOPMENT OF AGRO-INDUSTRIAL COMPLEX ON BASIS
OF COOPERATION AND INTEGRATION
Problem statement. When development is dis-
cussed, what is meant is progressive development under
which qualitative changes in the system, including or-
ganizational ones, are positive. Objectively, according
to the criterion of novelty, this condition can be more
perfect or seem so. Development is associated with pro-
gress because it is a universal trend of the nature and
society evolution. It is in this sense that we can speak
about development as transition from the simple to com-
plex, from lower to higher. However, everything is not
so good when what we discuss is not evolution in the
biological sense but individual development, ontogeny
of an organization as a system, particularly, the agro-in-
dustrial complex as a social and economic organization.
Development of the agro-industrial complex can be
not only progressive but regressive as well, when degra-
dation, transition from the highest to the lowest, less per-
fect, occurs. The life cycle of an organization includes
both progressive (creation, growth, maturity) and re-
gressive (recession, liquidation) development.
Both progress and regression have their opposites:
under the condition of rapid progress, it is possible to
lose sustainablity and caution; while under the condition
of regression, it is possible to prevent decline of certain
parts of the agro-industrial sector as an organization. In
this case, development appears to be the most vivid
manifestation of the dialectical law of unity and struggle
of opposites.
Any organization is between the desire for progress
and regressive standstills and retreats (caused by inter-
nal and external destructive barriers), between ongoing
work to organize itself and disorganizing circumstances
and routine.
Development of the agro-industrial sector is due to
instability, volatility, bifurcation. Instability contributes
to selection of the better. Progress and regress are
closely interrelated and constitute a dialectical unity.
There is no progress without regress and vice versa. Due
to this, organizational development of the agro-indus-
trial sector is unstable to some extent.
Unresolved conflicts between economic agents of
the agriculture and industry constitute one of the reasons
for an insufficient pace of their economic growth. Co-
operation and integration is an important mechanism for
eliminating these contradictions.
A special position is occupied by enterprises of the
food industry, which, in our opinion, constitute an inte-
grational foundation for effective development of food
production. They perform basic functions of coordinat-
ing to establish sustainable and mutually beneficial eco-
nomic, industrial and technological relations, to ensure
rational use of their capacity. They act as organizers and
integrators of complex productional and technological
processes of food production and satisfying require-
ments of the public in them. It allows to create a strong
export potential of the country and ensure an access to
the world food markets.
Analysis of the latest studies and publications.
To develop a full readiness of an organization to accept
changes, its management has to provide capacity for
such a perception in the very structure of an organization
and its administrative actions. This realization led to cre-
ation of the concept of organizational development in
the 1960s [1, p. 538]. As a result of its rapid evolution,
managements were able to achieve methods and proce-
dures for system diagnosis, planning, implementation
and support of changes to improve efficiency of an or-
ganization.
According to O. Winnie [2, p. 367], subpurposes of
the organizational development include changes in
treatment of work, changing behaviour and stimulating
changes in the structure and policy. As R. L. Daft [3, p.
390] notes, organizational development is carried out at
the expense of adapting to changes in the external envi-
ronment, skills to resolve emerging problems, improve
internal relations. According to M. Biro’s [4] views,
S. Ivanov, V. Perebyynis, L. Oleksenko, А. Svitlychna
42
Економічний вісник Донбасу № 4(46), 2016
basic objectives of the organizational development in-
clude: achieving the consistency between an organiza-
tional structure, processes, strategy, personnel and cul-
ture; developing and creating new organizational solu-
tions; developing an ability of self- renovation and self-
regeneration.
In particular, the monograph [5] is devoted to or-
ganizational development of agricultural enterprises.
Since enterprises of the agro-industrial complex are lo-
cated mainly in rural areas, organizational development
of the economic subjects in this sphere of the economy
is inextricably linked to functioning of rural settlements
[6].
The aim of this article is to highlight the results of
the research of organizational development problems of
the agro-industrial complex of Ukraine on the coopera-
tion and integration principles, which allows to improve
organizational and economic relations between enter-
prises of the agriculture and food industry.
Presentation of the baseline of the study. The
made analyses allow us to state that organizational de-
velopment is:
- a planned long-term process aimed at setting
goals, organizing activities, motivation and control (and
adjustments if any are necessary);
- a process based on the system approach and con-
necting a potential of an enterprise with its technology,
structure and management;
- a process focused on solving problems of an or-
ganization by using various theories and scientific re-
searches (including behaviorism);
- a process in which an organizational design is ex-
ercised, consultants are involved where it is appropriate;
- a training process that involves staff retraining
and is a means of formulating organizational culture.
In our opinion, development of an organization is
due to the following factors:
1) changes in the external environment;
2) transformation of an organization derived from
operation of market forces, change of characteristics of
the "input" of an organization, transition to a new organ-
izational structure, new technology, changes in motiva-
tion of employees and others.
It has been established that development of an or-
ganization is based on the laws of ontogeny, composi-
tion and proportionality, self-preservation, competition,
economy of scale and transition to new scientific ap-
proaches and management principles (table 1).
Organizational development of the agro-industrial
complex of the economy is closely related with consid-
ering operation of the above examined laws, and
knowledge of them allows to select the most effective
ways to achieve the stated objectives.
Implementing organizational and integrational
fuctions by enterprises of the food industry is primarily
due to a higher level of industrialization of production
processes. Integration of processing enterprises and ag-
ricultural enterprises promotes to shaping parity of eco-
nomic relations between them, increasing production of
competitive food commodities. As a result, it allows to
obtain high economic performance by eliminating con-
tradictions between economic entities.
Table 1
Fundamental laws on which organizational
development is based
Law Essence of law
Law of on-
togeny (law
develop-
ment)
Each material system tries to achieve
the greatest total capacity while un-
dergoing all or a part of stages of their
life cycle
Law of com-
position and
proportion-
ality
Each material system tries to save all
the necessary elements (a composi-
tion) which are in a prescribed ratio
and prescribed subordination (a pro-
portionality) in its structure
Law of self-
preservation
Each material system tries to save it-
self (to survive) and mobilizes its full
potential for this (source)
Law of com-
petition
The objective process of washing-out
of organizations being unable to
maintain a competitive position in the
markets of goods and services
Sources: designed on the data [7, p. 36-37; 8, p. 27-35].
This is due to the following factors:
1) reduction of logistics costs for storage and trans-
portation of agricultural commodities by reducing a dis-
tance of their transportation and a number of shipments;
2) a part of secondary raw materials (waste) ob-
tained in the result of processing agricultural commodi-
ties may be used for feed purposes;
3) selection and implementation of advanced tech-
nologies is achieved (from the beginning of cultivation
of agricultural raw materials to the sale of products of
their processing);
4) there emerge conditions and opportunities for
creation and development of an economic mechanism of
managing inter-sectoral processes in the sphere of food
commodities production based on considering and bal-
ancing economic interests of all the participants of the
agro-industrial complex.
Domestic agricultural raw materials precessing in-
dustry mainly supplies the public with food. However,
outdated technological equipment of many processing
enterprises hinders development of deep product pro-
cessing, expanding a range of commodities, their pre-
packing, packaging and others. There is a need for mod-
ernization and reconstruction of the existing material
and technical basis, transition to new food manufactur-
ing technologies, use of marketing tools while studying
market needs, etc.
The problems of economic relations between agri-
cultural producers and processors have not been solved
S. Ivanov, V. Perebyynis, L. Oleksenko, А. Svitlychna
43
Економічний вісник Донбасу № 4(46), 2016
completely. This hinders an increase of high-quality,
safe food production. There is an urgent need to adjust
economic relations between agricultural and industrial
enterprises by addressing disparity in prices. It is diffi-
cult to ensure an increase of product competitiveness
without creating economic conditions for mutually ben-
eficial cooperation of the agro-industrial complex trans-
actors.
Due to better financial opportunities, processing
enterprices usually become integrators of the regional
agro-industrial complex. Each such company and pro-
ducers of agricultural commodities constitute a primary
agro-industrial area of the regional agro-industrial com-
plex.
A quantitative composition of agro-industrial areas
depends on their territorial location, production capac-
ity, actual transport connection and other factors. Given
a location and size of primary areas, selection and breed-
ing centers, breeding farms, enterprises manufacturing
animal feed may be formed. These and other units are
determined by a rational size and concentration of pro-
duction of the respective kinds of commodities.
A few primary agricultural areas together with a se-
lection and breeding center, breeding farms and enter-
prises manufacturing animal feed can form a secondary
agro-industrial area of the regional agro-industrial com-
plex of a cluster type. They can include industrial enter-
prises manufacturing engineering tools. Their number is
predetermined with an available location, production ca-
pacity and consumer demand.
Regional agro-industrial complexes form the na-
tional agro-industrial complex. The national agro-indus-
trial policy is implemented within its bounds that pro-
vides for development of agricultural production, its in-
dustrial processing, domestic and foreign food markets
and rural areas.
Organizational development of the agro-industrial
sector should include improvement of production rela-
tions based on cooperation and vertical integration of
agricultural and processing enterprises.
In our opinion, one of the options for integration is
a union of agricultural producers and processors on the
joint-stock basis. The following principles and ap-
proaches should be conditions for activities of such
agro-industrial units:
- a voluntary accession;
- preserving legal and economic independence of
enterprises and organizations that are part of an inte-
grated formation and their ownership of the means of
production;
- common distribution of work caused by operation
of the law of work time economy;
- economic separation and appropriation of labour
division products by primary producers, processors and
trade;
- economic interest in development of integrated
production of a certain type of food;
- economic responsibility for the outcomes of joint
activities;
- a contract system of organizational and economic
relations between primary producers, processors and
trade;
- interconsistency and mutually beneficial eco-
nomic relations between individual producers.
According to international and domestic experi-
ence, benefits of close-ended production associations,
including primary producers, processors and commer-
cial enterprises, are obvious. Importantly, a joint stock
company forms its own stable raw material base. Enter-
prises-shareholders gain opportunities for ensuring pro-
duction development and reducing production costs. An
income from activities of integrated companies will al-
low to increase a share of state revenues.
The economic interest of structural units making
up an association is primarily based on profits, which
they can obtain by improving a range and quality of the
final products, better use of resources. In an integrated
formation, profits consist of obligations to the state and
profits distributed throughout a chain of integrated pro-
duction, taking into account contribution of each partic-
ipant in the process to the final result. Each subject of an
integration should receive funds immediately after end-
ing of a production cycle. Total profits incorporated in
all the kinds of prices should be calculated on a uniform
methodological basis for all the participants of an inte-
grated unit.
At the same time, the following approaches to dis-
tribution of profits can be used:
a) in proportion to all costs incurred (costs of pro-
duction and services);
b) in proportion to the value of main production as-
sets and working capital, taking into account a speed of
rotation of each component of capital.
In our view, a regulatory cost value should be de-
termined at an average of a group of enterprises belong-
ing to an integrated unit. At the same time, it is neces-
sary to avoid an undue overstating of production costs
related to organizational and technical shortcomings of
activities of integrated companies.
Economic organizations whose production costs
are lower than the standard value will have higher prof-
its derived from the sale of the final result and its distri-
bution among subjects of an integrated system. Con-
versely, agricultural enterprises having higher produc-
tion costs will get less profit per unit of produced raw
materials and, therefore, per unit of production costs.
At processing enterprises, production costs should
also be determined on the standard basis taking into ac-
count a technology level, opportunities for mechaniza-
tion and automation of production, loss prevention and
so on.
Under the conditions of integration, it is possible to
organize a processing industry on the give and take basis
when a manufacturer as an owner of the final output can
S. Ivanov, V. Perebyynis, L. Oleksenko, А. Svitlychna
44
Економічний вісник Донбасу № 4(46), 2016
use it voluntarily. In this case, an agricultural producer
pays to an processing enterprise with raw materials or
money to compensate processing costs, refrigeration
processing services, production storage and other ser-
vices at negotiated rates. They are set on the basis of ac-
tual costs for a prior month and standardized earnings.
In the agro-industrial sector, the following direc-
tions for improving industrial relations are appropriate
(fig. 1).
If there are sufficient quantities of raw materials, it
is expected to attract enterprises to participate in the
management of economic activities. Economically, it is
achieved by mutual penetration of capitals of enterprises
through an assignment of shares or joint establishment.
A balance of strategic interests is created in this way.
Shares of the authorized capital of enterprises of the
food industry and agriculture have to be equivalent or
have a certain imbalance depending on a regulation pur-
pose.
This option is implemented if a processing plant
does not lack raw materials. Provided breakeven, such a
scheme allows to use advantages of specialization and
concentration of production. Even so, an enterprise loses
a certain part of profits due to selling raw materials but
not a finished product. However, practical implementa-
tion of this option of improvement of economic relations
in the food sector is problematic because shares belong
not to the company as a whole but to concrete sharehold-
ers and a mutual assignment of shares may be imple-
mented only on a voluntary basis.
Fig. 1. The main directions of improving industrial relations in the regional agro-industrial complex
One of the main problems for many enterprises of
the food industry is a lack of raw resources. In such cir-
cumstances, cooperation of processing and agricultural
enterprises, establishment of vertically integrated struc-
tures, enterprises of a single technological cycle provid-
ing direct investment in the agriculture are appropriate.
Based on this, cooperation is an effective way to
improve economic relations in the agriculture. On the
basis of cooperation, tasks to provide enterprises of the
food industry with raw materials and agricultural enter-
prises – with material resources and investments can be
accomplished (fig. 2).
In this case, the main problem may be a division of
payment for products (raw materials) into money and
material (barter) components by agricultural enterprises.
If there is a lack of funds, the purpose of such balance
of payment is obvious - the money part has to be di-
rected to remunerate for labour, given its significant im-
pact on labour productivity. The second part can also be
paid in a money form. But on this occasion, an enterprise
has to purchase material resources on its own that con-
tributes to transaction costs.
If there is such a scheme, providing material re-
sources of agricultural enterprises is done in a larger
amount compared to cases when resources are pur-
chased by enterprises for the same cost. Thus, a pro-
cessing plant can supply resources to agricultural enter-
prises for a profit or with guaranteed covering turnover
costs and transaction costs.
Based on cooperation, enterprises of the food in-
dustry can attract credit resources from commercial
banks which are not available for individual agricultural
enterprises because of great production risks and ab-
sence of adequate liquidity as well as a small amount of
attracted loanable funds.
A processing enterprise has better conditions to at-
tract a loan due to the following factors:
- more likely repayment because profitability of
processing enterprises exceeds a nominal interest on
loan. Given a real rate (a nominal rate minus inflation),
repayment can be guaranteed with high probability;
Directions of improving industrial relations in the regional agro-industrial complex
If there are sufficient
quantities of raw materials
If there are insufficient quantities
of raw materials
Antitrust regulation is
balancing strategic in-
terests of agricultural
enterprises
and regional proces-
sors- monopolists
Cooperation of
agricultural and
processing enter-
prises
Creating agricul-
tural associations
ultimately linked
to sources of eco-
nomic resources
Creating integrated
enterprises with a
full cycle of
production of raw
materials and
finished products
S. Ivanov, V. Perebyynis, L. Oleksenko, А. Svitlychna
45
Економічний вісник Донбасу № 4(46), 2016
Fig. 2. A model of cooperation of agricultural enterprises and enterprises of the food industry
- availability of liquid assets that can be used as se-
curity;
- possibility of attracting large amounts of credit
resources.
In this case, a processing plant can be a manager of
loans for agricultural enterprises, monitoring effective-
ness of their use and ensuring their repayment.
Due to cooperation, it is possible to supply second-
ary products, such as skim whole milk, to agricultural
enterprises in terms of an offset and using other forms
of mutually beneficial cooperation. The introduced
scheme of cooperation does not limit a number of par-
ticipants and provides independence of a processing en-
terprise and agricultural enterprises.
In our opinion, an effective economic lever is not
raising prices but investing in specific projects to in-
crease agricultural production. Investment projects in
the agro-industrial sector require effective management
of resources, for which vertically integrated organiza-
tions can be created. Depending on the scale of specific
projects and conditions, in particular, it is possible to es-
tablish two-stage integrated organizations (fig. 3).
In the presence of such an integration, enterprises
of the food industry and agricultural enterprises are on
an equal footing concerning subordination. It can be cre-
ated on the basis of direct submission (if these are gov-
ernment enterprises), on the basis of a holding or other
forms of joint establishment (in the case of private en-
terprises). Such associations facilitate an access to credit
resources (as banks can also be their shareholders), as
well as to material resources (if an organization includes
enterprises of other sectors).
Fig. 3. A scheme of a two-stage integrated
organization
To avoid excessive taxation, it is promising to cre-
ate non-profit organizations where a partner association
is carried out on the technological, organizational and
economic basis. This scheme has the following features:
- using benefits of specialization and concentration
of production;
Managing company
An enterprise of the
food industry
Agricultural
enterprises
Payment to agricultural enterprises
for raw materials
A material component:
supplies in larger quantities
compared to capabilities of
agricultural enterprises for
the same charge due to
discounts when purchasing
A monetary
component - not
less than costs of
a relevant
consignment of
raw materials
Distribu-
tion of
loan parts
Supplies of
secon-dary
produc-
tion in
terms of an
offset
Loans at a commercial bank
Large wholesale supplies with
payment of money at cut rates
Material resources
Providing a processing enterprise
as a manager and guarantee of repayment
Supplies of
raw
materials
Agricultural enterprises
A processing enterprise
S. Ivanov, V. Perebyynis, L. Oleksenko, А. Svitlychna
46
Економічний вісник Донбасу № 4(46), 2016
- development of a common price policy in the in-
terest of all participants;
- a possibility to get financial resources on favour-
able terms and attracting investments for agricultural en-
terprises;
- risk insurance (insurance companies will work
with such associations with greater pleasure due to re-
ducing a probability of risk);
- solving social problems at lower cost.
However, in this version of integration, there is an
appropriate market gap between agricultural enterprises
and processing enterprises which leads to loss of income
in the agriculture. Agricultural and processing enter-
prises remain independent to a certain measure but at the
same time purchase and sale of agricultural raw materi-
als for processing is not excluded.
Conclusions. Thus, the important areas of organi-
zational development of the agro-industrial complex
are: firstly, antitrust regulation, cooperation and integra-
tion of agricultural production and its processing; sec-
ondly, creating a competitive environment that requires
attracting investments.
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Іванов С. В., Перебийніс В. І., Олексенко
Л. В., Світлична А. В. Організаційний розвиток
агропродовольчого комплексу на засадах коопе-
рації та інтеграції
Доведено доцільність організаційного розвитку
агропродовольчого комплексу економіки на засадах
кооперації та інтеграції. Це дозволяє удосконалити
організаційно-економічні зв’язки між підприєм-
ствами сільського господарства та харчової промис-
ловості. Обґрунтовано два підходи: перший, що
ґрунтується на розвиненій сировинній базі; другий,
що обмежений недостатньою кількістю сільського-
сподарської сировини. Сформована модель коопе-
рації сільськогосподарських підприємств і підпри-
ємств харчової промисловості.
Ключові слова: організаційний розвиток, агроп-
родовольчий комплекс, сільське господарство, хар-
чова промисловість, кооперація, інтеграція.
Иванов С. В., Перебийнос В. И., Олексенко
Л. В., Светличная А. В. Организационное разви-
тие агропродовольственного комплекса на ос-
нове кооперации и интеграции
Доказана целесообразность организационного
развития агропродовольственного комплекса эконо-
мики на основе кооперации и интеграции. Это поз-
воляет усовершенствовать организационно-эконо-
мические связи между предприятиями сельского хо-
зяйства и пищевой промышленности. Обосновано
два подхода: первый, основанный на развитой сырь-
евой базе; второй, ограниченный нехваткой сельско-
хозяйственного сырья. Сформирована модель ко-
операции сельскохозяйственных предприятий и
предприятий пищевой промышленности.
Ключевые слова: организационное развитие, аг-
ропродовольственный комплекс, сельское хозяй-
ство, пищевая промышленность, кооперация, инте-
грация.
Ivanov S., Perebyynis V., Oleksenko L., Svit-
lychna A. Organizational development of agro-in-
dustrial complex on basis of cooperation and integra-
tion
Expediency of organizational development of the
agro-industrial complex of the economy on the princi-
ples of cooperation and integration has been proved.
This allows to improve organizational and economic re-
lations between enterprises of the agriculture and food
industry. Two approaches have been grounded: the first
is based on the developed raw material basis; the second
is limited with a lack of agricultural raw materials. The
model of cooperation of agricultural enterprises and en-
terprises of the food industry has been formed.
Keywords: organizational development, agro-in-
dustrial complex, agriculture, food industry, coopera-
tion, integration.
Received by the editors: 30.10.2016
and final form 28.12.2016
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