ORGANIZATIONAL AND ECONOMIC PRINCIPLES OF THE FORMATION OF INTEGRATION ASSOCIATIONS IN THE MEAT PRODUCT SUB-COMPLEX IN THE CONTEXT OF THE COUNTRY'S FOOD SUPPLY
Authors:   Bila Tserkva National Agrarian University, Svynous Ivan , Svinous Nadia ,   Bila Tserkva National Agrarian University, Shypylina Olesya ,   Bila Tserkva National Agrarian University
Published: February 2023

It has been proven that a model of the development of the meat product sub-complex is currently being implemented in Ukraine, which is based on vertically integrated industrial complexes with a full production cycle from feed mills to deep meat processing. Vertical integration is characteristic mainly for enterprises of poultry breeding, pig breeding and processing of their products, since in these industries there is a high level of concentration and mechanization, which contributes to the achievement of efficiency due to the scale of production in large business. It has been established that vertical integration of production makes it possible to ensure the raw material base of meat processing in the required volume and guaranteed quality; reduce transaction costs; minimize logistics costs through cluster development of the full production cycle in a certain territory; to optimize the tax burden due to the exclusion of taxes on intermediate products and the relocation of production to the territory with more favorable tax conditions; reduce business risks by distributing them to different market segments and controlling the entire production and sales chain; due to the provision of full control over the quality of raw materials and their complex processing, to expand the range, to respond to the changing demands of consumers, to increase the competitiveness of products, to reduce the cost price; improve information security of activities; to solve environmental problems with the help of waste-free technologies. Distribution relations in integrated formations of the meat product sub-complex can be built according to two models: price, which in practice can be applied in two variants: according to current market prices, or – according to estimated domestic prices; normative-distributive, which differs from the price model in that calculations are made not according to the intermediate, but according to the final result. We believe that now it is necessary to solve the problem of a balanced combination of a combination of large agro-industrial formations, medium-sized agricultural enterprises and personal peasant farms in the sub-complex, which allows to ensure the realization of the advantages of each form of management, economic growth in the industry and sustainable development of rural areas. The results of the conducted research provide grounds for determining the following areas of effective development of integration processes in the meat product subcomplex, on which it is proposed to focus the efforts of the state, business, industry associations and the scientific community: ensuring the effective entry of integrated structures into the global agro-food market; creation of a legal framework for property and distribution relations between participants of integrated structures, including the adoption of the Law of Ukraine on holding; development of scientific and methodological support in the field of organizational and economic mechanism of activity of integrated formations, taking into account the interests of all participants; concentration of investment activity of integrated formations on modernization of production and sales, development of breeding and genetic and fodder base.