Theoretical foundations of agricultural business and the objective need for its development

Bardakov Vladyslav
PhD student at the Department of Management, Poltava University of Economics and Trade, Poltava, Ukraine, E-mail: V.bardakov@gmail.com, ORCID: https://orcid.org/0009-0008-0470-7974

Cite this article:

Bardakov V. (2024) Theoretical foundations of agricultural business and the objective need for its development. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Teoretychni osnovy agrarnogo biznesu ta objektyvna neobhidnist jogo rozvytku; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 12 (325), pp.69-76.

Abstract

The purpose of the article is to study the main categories of the agricultural sector and determine the role of agribusiness in the context of modern economic relations. The research is aimed at analyzing the structural elements of agribusiness, its interaction with other sectors of the economy, as well as assessing the impact of innovative technologies and commercial strategies on the development of agricultural entrepreneurship. To achieve the set goal, methods of analysis and synthesis, tabular, graphical, analogy, and comparison were used. It was established that the agricultural sector of the economy encompasses all types of activities related to the production, processing, and sale of agricultural products. It includes both crop production and animal husbandry, as well as other industries that ensure the country's food security. It was determined that agribusiness is part of the agricultural sector and includes entrepreneurial activities aimed at making a profit from the production and sale of agricultural products. The formulated vision of agribusiness is as an integrated subsystem of economic relations that encompasses the entire chain of food and raw material movement, starting from the supply of farms with material and technical resources and ending with the final consumer. These can be large agroholdings as well as small farms. The practical value of the article lies in emphasizing the importance of agribusiness for economic development, food security, and the preservation of natural resources. The article also highlights the role of innovation and technological progress in improving productivity and product quality, which is key to competitiveness in international markets. This makes it useful for developing strategies for the development of the agricultural sector in the context of globalization and climate change.

Keywords

agricultural sector, agriculture, agribusiness, agro-industrial complex of Ukraine, agricultural sector of the economy.

JEL classification: Q100; Q130; Q180; DOI: https://doi.org/10.32680/2409-9260-2024-12-325-69-76

UD classification: 338.43:631

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