LOCAL SOCIO-ECONOMIC DEVELOPMENT AND AGROHOLDINGS: THE CASE OF AGROINDUSTRIAL HOLDING “MIRONIVSKY HLIBOPRODUCT”

Abstract

Agricultural holdings produce a significant part of agricultural products in Ukraine. They increase production capacity using the resource potential of agricultural regions. This study presents an attempt to assess the benefits received by the territories from the location of enterprises of the agroindustrial holding “Mironivsky Hliboproduct”. Based on the system-structural analysis, the historical and geographical features of the development and location of enterprises were studied. The development of the company was influenced by factors of different levels (local, national and international). At the local level, climatic conditions, land resources, infrastructure and labor resources are the most influential factors. The main operating segments of the agricultural holding and the connections between them are described in detail. The formation of a vertically integrated structure has become an important competitive advantage of the agro-industrial company. This makes it possible to control the production process, quality and cost of production, provides high economic efficiency of production. Agro-holding enterprises are significant employers in their regions; they assure a better balance in local labor markets. The initiatives of enterprises to develop local infrastructure, housing for workers, improving their skills are important for the local economies. A comprehensive assessment of the levels of socio-economic development of the territories showed that large agricultural enterprises do not always have a decisive influence on the state of the local economy. A clear positive trend was found for areas where large areas of agricultural land are involved and processing is developed. Most of the administrative districts during the period of increasing production of the agroindustrial holding (2003–2018) deteriorated their positions compared to other districts. This is a signal for the local authorities to find ways to diversify the rural economy through both the development of farms and non-agricultural activities.