Models of agrarian business development in international practice

In conditions of the world economy globalization, regional trade and economic integration of countries, and increased sectoral competition, agricultural business remains a strategically important branch of the national economy of any state. Its activities are based on the regulatory legal framework for creation and functioning of agro-industrial complex entities, state regulation and support of agriculture, development of rural areas, food export incentive, formation of external and internal trade infrastructure. The world agrarian economy demonstrates the use of various models of efficient agro-industrial production management, providing for solution of national food security and increasing the export potential of the industry. The paper presents typology of agriculture by types of land use at various levels of social and economic development of countries, identifies the main world producers, exporters and importers of agri-food products. Review of the state regulation system and support of commodity producers in Australia, Argentina, Brazil, the European Union, India, Indonesia, Canada, China, Russia, and the United States has been carried out taking into account implementation of the international rules of the World Trade Organization. Various types of agricultural business models, sales systems, depending on production specialization of individual states, regions, enterprises and aimed at development of vertical integration, combination of marketing and logistics functions within one company, changes in the commodity structure along the sales channels in the domestic and foreign markets, have been systematized. The competitive advantages of the Republic of Belarus in the context of development of priority areas of agricultural business have been substantiated and the key risks having significant impact on the strengthening of production, sales and export potential have been analyzed. The issues Covered in the paper are of interest in preparation of draft state programs for social and economic development of the national agro-industrial complex, strategy in the field of export of agricultural products and food products for the period up to 2025. 

1. Quesnay F. Selected works on economics. Moscow, Sotsekgiz Publ., 1960. 551 p. (in Russian).

2. Smith A. An inquiry into the nature and causes of the wealth of nations. Petrozavodsk, Petrokom Publ., 1993. 320 p. (in Russian).

3. Ricardo D. Principles of political economy and taxation: selected works. Moscow, Eksmo Publ., 2007. 953 p. (in Russian).

4. Schumpeter J.A. Theorie der wirtschaftlichen Entwicklung. Capitalism, Socialism and Democracy. Moscow, Eksmo Publ., 2008. 864 p. (in Russian).

5. Hayek F.A. von. Prices and production. 2nd ed. London, Routledge, 1935. 162 p.

6. Chayanov A. V., Makarov N.P. The nature of the peasant economy and the land regime. Moscow, Liga agrarnykh reform Publ., 1918. 71 p. (in Russian).

7. Davis J.H. From agriculture to agribusiness. Harvard Business Review, 1956, vol. 34, no. 1, pp. 107-115.

8. Davis J. H., Goldberg R.A. A concept of agribusiness. Boston, Division of Research, Graduate School of Business Administration, Harvard University, 1957. 136 р.

9. Dobren’kov V. I. (ed.). American sociological thought. Moscow, International University of Business and Management, 1996. 557 p. (in Russian).

10. Davydenko L.N. Improving the mechanism of state regulation in the agricultural sector of the economy. Ekonomicheskie problemy agropromyshlennogo kompleksa: nauchnye trudy mezhdunarodnoi nauchno-prakticheskoi konferentsii [Economic problems of the agro-industrial complex: scientific papers of the international scientific and practical conference]. Minsk, 1999, pp. 18-25 (in Russian).

11. Dadalko V. A., Peshko D.A. State regulation of the agro-industrial complex development: foreign experience. Minsk, 1994. 111 p. (in Russian).

12. Dolan E. G., Lindsey D.E. Microeconomics. 6th ed. Chicago, Dryden Press, 1991. 588 p.

13. Fuglie K. R&D capital, R&D spillovers, and productivity growth in world agriculture. Applied Economic Perspectives and Policy, 2018, vol. 40, no. 3, pp. 421-444. https://doi.org/10.4324/9780429287954-3

14. Weltzien C. Digital agriculture – Or why agriculture 4.0 still offers only modest returns. Landtechnik, 2016, vol. 71, no. 2, pp. 66-68. https://doi.org/10.15150/lt.2015.3123

15. Ansoff H. Igor, assisted by McDonnell E.J. The new corporate strategy. New York, Wiley, 1988. 258 p.

16. Weissman A. Marketing strategy: 10 steps to success; Management strategy: 5 success factors. Moscow, Interekspert Publ., Ekonomika Publ., 1995. 344 p. (in Russian).

17. Belyatskii N. P., Veles’ko E.I. International personnel management. Belorusskii ekonomicheskii zhurnal = Belarusian Economic Journal, 2001, no. 3, pp. 50-61 (in Russian).

18. Day G.S. Market driven strategy: processes for creating value. New York, The Free Press, 1990. 405 p.

19. O’Shaughnessy J. Competitive marketing : a strategic approach. 3rd rev. London, Routledge, 1995. 749 p.

20. Lambin J.-J. Le marketing stratégique : une perspective européenne. 3rd ed. Paris, Ediscience International, 1996. 578 p. (in French).

21. Rudelius W., Avdyukhina M. V., Ivashkova N. I., Kerin R. A., Komissarova T. A., Kuz’min I. V. (et al.). Marketing. Moscow, DeNovo Publ., 2001. 706 p. (in Russian).

22. Coughlan A. T., Anderson E., Stern L. W., El-Ansari A.I. Marketing channels. 6th ed. Upper Saddle River, Prentice Hall, 2001. 590 p.

23. Baker M. (ed.). Macmillan dictionary of marketing and advertising. 2nd ed. London, Macmillan Press, 1990. 217 р. https://doi.org/10.1007/978-1-349-10064-4

24. Bowersox D. J., Morash E.A. The integration of marketing flows in channels of distribution. European Journal of Marketing, 1989, vol. 23, no. 2, pp. 58-67. https://doi.org/10.1108/eum0000000000546

25. Baygot M.S. Mechanisms for regulating the foreign economic activity of Belarus in the agricultural sector: issues of theory, methodology, practice. Minsk, Belaruskaya navuka Publ., 2010. 367 p. (in Russian).

26. Gusakov V. G., Daineko A. E., Baygot L. N., Kireenko N.V. Organization of marketing and business in the agricultural sector. Minsk, Belarusian Scientific Research Institute of Agrarian Economy, 2000. 232 p. (in Russian).

27. Belsky V.I. The economic mechanism of state regulation of agricultural production: theory, methodology, practice. Minsk, The Institute of System Research in Agroindustrial Complex of NAS of Belarus, 2018. 265 p. (in Russian).

28. Bychkov N. New in the development of holding companies. Agrarnaya ekonomika = Agrarian Economics, 2015, no. 3, pp. 2-18 (in Russian).

29. Voitko I.A. Development of the agricultural insurance system as a factor in increasing the efficiency of production and processing of flax products. Agropanorama , 2020, no. 3, pp. 39-43 (in Russian).

30. Gusakov V.G. Economy and organization of agriculture in the conditions of market formation: scientific search, problems, solutions. Minsk, Belorusskaya nauka Publ., 2008. 431 p. (in Russian).

31. The strategy for the development of agriculture and rural regions of Belarus for 2015-2020. Minsk, The Institute of System Research in Agroindustrial Complex of NAS of Belarus, 2014. 55 p. (in Russian).

32. Zapol’skii M. Methodological foundations of functioning of the intracorporate economic mechanism. Agrarnaya ekonomika = Agrarian Economics, 2015, no. 9, pp. 30-35 (in Russian).

33. Kiselev S.V. State regulation of agriculture in the conditions of a transitional economy. Moscow, Institute of Economics RAS, 1994. 179 p. (in Russian).

34. Cravens D.W. Strategic marketing. 6th ed. Boston etc., Irwin/McGraw-Hill, 2000. 752 p.

35. Myuller P. Evolutionary reforms in the economy of the Eastern European countries. Mirovaya ekonomika i mezhdunarodnye otnosheniya = World Eсonomy and International Relations, 1991, no. 6, pp. 65-76 (in Russian).

36. Nazarenko V.I. Food market in the West. Moscow, The Institute of Europe of the RAS, 2008. 295 p. (in Russian).

37. Shpak A.P. On the way of competitive development. Agrarian sector of the economy of Belarus in the recent period. Belaruskaya dumka, 2015, no. 6, pp. 68-73 (in Russian).

38. Gusakov V. G., Belsky V. I., Baygot L. N., Baygot M. S., Batova N. N., Kireenko N. V. (et al.). Improving the marketing system in the agri-food sector. Theory, methodology, practice. Minsk, The Institute of System Research in Agroindustrial Complex of NAS of Belarus, 2010. 252 p. (in Russian).

39. Kireenko N. V., Korinev V. L., Tomareva V. V., Golovkova L. S., Gornak A.A. Marketing in the management of a modern enterprise. Zaporozhye, Classical Private University; Minsk, 2010. 167 p. (in Russian).

40. Gordon M. P., Karnaukhov S.B. Logistics of product distribution. 2nd ed. Moscow, Center for Economics and Marketing, 2001. 196 p. (in Russian).

41. Magomedov A.-N. D., Belan A. I., Bekhchanova A. I., Brattsev V. I., Voroshilova I. V., Gasanova Kh. N., Dem’yanov N. S., Klyukach V. A., Kolonchin K. N., Martynenko O.V. Scientific basis for infrastructure development of the commodity distribution network of the agri-food market. Moscow, Nasirddinov V.V. Publ., 2012. 146 p. (in Russian).

42. Paptsov A. Contracting and sellers’ cooperation within the system of integrated relations in agrarian sector of European Union countries. APK: ekonomika, upravlenie = AIC: Economics, Management, 2008, no. 9, pp. 63-67 (in Russian).

43. Samarina N.V. Effective methods of promoting food products on the market. NTI i rynok [NTI and the market], 1988, no. 5, pp. 55-57 (in Russian).