Theoretical aspects of functioning of agro-food chains and features of their development in Ukrainian
Authors: Varchenko O.O. 
Published: October 2019

The peculiarities of creation and functioning of agro-food chains based on the study of scientific works were generalized, which allowed to establish a variety of approaches to the definition of agro-food chains and their structure. The study describes the understanding of agribusiness supply chains based on global and local approaches to their functioning, and the "smart" supply chain of agro-food. The main flows in the agro-food chain have been identified, namely: physical (agricultural raw materials, agro-food, logistics operators etc.), information, financial flows, as well as knowledge and experience of management.
The purpose of the article is to synthesize scientific approaches to understanding the concept of supply chain and agro-food chain in domestic and foreign practice, systematization of the principles and basic business processes of their functioning, as well as identification of the main factors of the external and internal environment of their functioning in modern conditions. It is highlighted that the main approaches to the interpretation of the supply chain are process and object approaches, both in foreign and domestic practice.
Particular attention is paid to the specifics of the functioning of global agro-food chains, which are not considered by academics as buyer-seller relations in the open market, but as coordinated chains of interactions that occur under the influence of key agents in these chains. These leading global chain members control other members of the chain, which has led to increased pressure, primarily on agricultural producers and processors.
The scientific opinions on the understanding and specificity of the functioning of alternative supply chains of agro-food, which give rise to economic, social and / or environmental benefits, are generalized. The directions of development of local agro-food chains in domestic conditions and their influence on creation of competitive rural territories are grounded.
The factors of the external and internal environment of functioning of agro-food chains and the directions of influence of their changes on the stability of their development, in particular, globalization of climate change, innovation development, and others, are systematized. The necessity of developing additional adaptations to the listed changes in other sectors – transport, storage and energy systems – has been proved, which actualizes the need for strengthening integration and cooperation between the participants of the supply chain.
The main goals of the functioning of agro-food chains are highlighted: increase of competitiveness of products, achievement of economic interests of all participants of chain, sustainable development of rural territories, more efficient satisfaction of needs of end users. Achievement of these goals can only be achieved on the basis of observance of the principles of sustainable development and innovation of the chain, resource-saving development of production activities.
It is emphasized that the question remains, both in practical and methodical aspects, as to the distortion of the information flow in agro-food chains, especially in chains with a large number of participants and numerous connections between them. In domestic practice, the issue of improving the quality and safety of agri-food products in agricultural supply chains needs to be actualized.
Key words: supply chain, agro-food chain, global chains, local agricultural chains, demand chains, logistic chains, "smart" chains.