Shmarov D. Economic regulation of the integrated development of the processing link of the agricultural sector of the region

The paper carries out structuring of the determinants of a low level of integrated development of the processing link of the agricultural sector of the national economy. According to this structuring there are such determinants: raw material orientation of the agricultural sector, insufficient level of waste disposal, outdated technical and technological base, lack of modern state financial support, industry excesses. It is established that the main priorities for ensuring the integrated development of the processing link of the agricultural sector in the conditions of turbulence and volatility of global food markets are increasing the level of utilization of existing capacities in processing and food production; reorientation of unused production sites of processing and food production to the production of biological fuel and other material and material substances of biological origin in accordance with new energy indicators and market fluctuations in target markets; establishment of primary and in-depth processing of agricultural raw materials directly on the basis of agricultural business entities; application of modern waste-free and low-waste technologies; diversification of the production program of processing and food production; restoration of processing industries specializing in the processing of industrial crops as the raw material basis of non-food segments of the processing and food production sector; transition to food quality and safety standards and regulations adopted in the EU. It is determined that the necessary prerequisite for the integrated development of the processing sector of the agricultural sector is the structural, sectoral and product-reproduction restructuring of the raw materials link of the agricultural sector. They provide for the restoration of the traditional pre-crisis agricultural specialization of certain natural climate zones and administrative districts; overcoming structural excesses in the raw materials link of the agricultural sector; the creation of complex agricultural production; reorientation of certain categories of agricultural producers to import substitution; restoration of acreage of agricultural crops with a long rotation period (horticulture, viticulture, berry growing). Studies have shown that the institutional forms of ensuring the integrated development of the processing link of the agricultural sector are: cooperation of subjects of agricultural business and processing and food production; service and sales cooperation of small and medium-sized agricultural producers and processing and food production; associative and cluster integration of producers of agricultural raw materials and processing enterprises; the formation of agro-industrial associations with a highly diversified structure; the creation of processing and food production with the participation of foreign and transnational capital. Based on the critical analysis and theoretical generalizations of the existing author's approaches to ensuring the complexity of the development of processing and food production in the work, the author's concept of a set of principles for building a regulatory mechanism for the integrated development of the processing link of the agricultural sector is formed. The work formed the subject-object basis of economic regulation of the integrated development of the processing link of the agricultural sector, covering subjects of regulatory influence, which provide advisory services, fiscal and financial and credit support, implementation of European Technical Regulations and standards of food quality and safety, protectionist measures. A promising model of integrated development of processing and food production in the Volyn region has been formed and its impact on structural changes in the agricultural sector of this region, as well as on the processes of complex formation in the economy of this region as a whole, is revealed. Studies have shown that the characteristic features of the development of the raw materials segment of the agro-industrial complex of this region are: the concentration of labour-intensive types of agricultural production in rural households; the concentration of export-oriented industries in agricultural enterprises; a high level of monopolization of the agricultural raw material market; the underdevelopment of the infrastructure for storing agricultural raw materials in the rural household sector. It is established that the characteristic features of the development of the processing segment of the Volyn agro-industrial complex are: absorption of a significant number of processing and food production by vertically integrated corporate structures; excessive use of numerous imported ingredients in food production; a high level of unused production sites in the reproduction process of processing and food production; high energy intensity of processing agricultural raw materials and food production.