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Vertically integrated structures in agriculture regarded as a way to overcome the crisis phenomena

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  • E. Aunapu

Abstract

The agricultural reforms in Siberian regions have had consequences such as a drop in production and sale, a decrease in tillage quality, sown areas, crops productivity and etc. This is a result of the disintegration taking place in an agricultural complex and, first of all, a result of a law marketability of the producers. To change the situation is required to concentrate resources and to build large vertically integrated structures which include all stages of production from building a resource base to selling final goods. For example, in the Altai Krai 7,1% of the agricultural enterprises, which till 9,5% agricultural land, are included in the integration processes. These enterprises provide 9% of jobs in the regional agricultural sector and sell 11% of the agricultural product in the krai. More than 70% of enterprises have become profitable.

Suggested Citation

  • E. Aunapu, 2006. "Vertically integrated structures in agriculture regarded as a way to overcome the crisis phenomena," Journal "Region: Economics and Sociology", Institute of Economics and Industrial Engineering of Siberian Branch of RAS, vol. 3.
  • Handle: RePEc:nos:regioe:2006-3_12
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