Scientific Journal of KubSAU

The article shows the economic mechanism of operation of the vertical cooperation of small agricultural farms and their quantitative characteristics. There is great attention paid to the work of Revising Union; and there are shown: its objectives, its stabilizing role in lending to small businesses, and the volume of regional lending. The proposed project is meant to improve the current economy mechanism of vertical cooperation, to increase efficiency of regulation of the development process of consumer cooperatives of small farming with future possibility of public offering of constituent entities of the production infrastructure created with participation of the state. The authors recommend creating joint infrastructural facilities for small business with active engaging of the government, which will increase currently low motivation of participants of small-scale agricultural farming (SAF) in building a new cooperation. It is recommended to actively enhance the process of creating of infrastructure of economic activity, the state features in the construction of production, supply, logistics, processing, marketing and other necessary for practical objects in the form of storage facilities, slaughterhouses, depots mine-mineral fertilizers etc. It is proposed to enhance preparation and retraining of personnel for working with small farms and especially in their consumer cooperatives. To increase efficiency of the informative-consultative instrument of development of small business by adding more state funding, more actively implement a scheme of public-private partnerships with cooperatives of small agricultural farming. The crucial condition for successful development of SAF is lobbying interests of participants of small agrarian business by giving opportunities from regional Chambers of commerce and industry, by establishing associations of small forms of management to protect interests of participants in use of land, resources provision, lending, product sales, and other important concerns

It is being said that the competitive position of subjects of small agrarian farms (SAF) are often provided with increasingly innovative approaches with flexibility of internal management, the ability to quickly adapt to constantly changing conjuncture market. However, as practice shows, the direction of development in small economies does not act as a priority of modern agricultural policy in this field, often dominated by declarative intent rather than running behind these statements required volumes of investment in regulation of subjects SAF development. It is noted that there the following actions should be taken: to supply the participants of small agricultural farms with necessary land resources; to create an affordable banking scheme for obtaining investment credits, subsidies, and cooperative credit for small business entities; to expand the scope of production and service; to continue development of opportunities for industrial cooperation, joint logistics, processing, marketing research, and marketing of products; to facilitate the access of small actors to local retail markets. A high rate of inflation, directly affecting the cost of credit, fuel prices, updating the technical and material base of production, and difficulties with working capital are still remaining the major problem. The solution to these problems would be enhancing the market competitiveness of small agrarian businesses

The problem of determining the correct potential market size for commodity products produced by small businesses is a subject of a great importance, as the excess of unsold products become a source of loss and default of management. Sales of produced agricultural and food produce for subjects of small business is crucial and, therefore, is a subject of increased interest. The author notes that today the main thing is not to produce products, but to effectively realize what is being produced. For this reason, for manufacturers of products, the correct prediction of production volumes given the potential market size is a problem of current interest. For more accurate results, the author recommends dividing the consumer groups of the population depending on the level of food consumption. To achieve that, it is suggested to divide consumers’ social, specific, and other characteristics. These essential features are accounted by the instrumentation panel surveys. The proposed approach with the right content recommended formula allows to define and model the volumes of agricultural products, which the market is able to absorb; to plan specific levels of production of subjects of small farms, the volume of product offerings that will find buyers, what will significantly reduce the risks of losses and occurrence of illiquid stocks

The article systematizes the singularity de-velopment and management of small farms (SFB), analyzes their competitive position, the technique of definition of the capacity of their market segment, is a model of a con-sumer cooperative multi SFB

The article describes a new method of modeling and factor analysis of industrial competitiveness, using the methodology of the transactional analysis in the study of competitive processes involving industrial enterprises

Domestic and foreign experience of operation of the segment of "small" rural economy shows that its capabilities are still being used not completely out of the difficulties and risks of development. The main reason for the slow dynamics of the modern development of subjects of small farming (SAF), according to the authors, is the inaccessibility of the credit market in this sphere since the key rate of the Central Bank at 10.5%, which is too high and, therefore, significantly reduces the efficiency of the investments in this risky industrial sector. In addition, the most narrow «neck bottle» is remaining a unit of realization of products of small businesses. The authors propose a refined definition of "small agricultural businesses" that differs from the previous definitions by its conciseness and by including small enterprises of not only 1-st production, but also the 2-nd processing of agricultural sector. The study revealed that the most distinctive features of small agricultural forms are: high autonomy, independence, and self-protection from adverse environmental factors. The authors propose to adjust the long-term regional development program, and suggest the method of determining the capacity of the market for products of small agricultural farms with possibilities of a differentiated accounting of consumers by their income, residency, and consumption of domestic and other animals. They believe that the problem of affordability of lending and perfecting of system of marketing of small agricultural farming today is largely able to solve with the multi-level agricultural credit and sales-living cooperatives. The authors believe that the government should create a high-in-demand SAF productive assets and then transfer them to the operational management of cooperatives, with subsequent transformation of them into equity of the small participants of cooperatives

It is noted that the grain commodity market is the basis of the Russian agro-industrial complex. Earlier the state support was about $4 billion, in 2016 it is expected to reach 237 billion rubles (less than $3 billion). Russia's accession to the WTO brought its farmers more minuses than pluses, less regulation opportunities, protection of the market. The urgency of improving the development methodology, development of practical recommendations for the decision of efficiency enhancing of the grain market, increased due to the globalization of socio-economic processes in the world. Over the last 5 years in the Krasnodar region state support of agro-industrial complex amounted to 32 billion rubles ($0.4 billion), or 1 664 rub/ha ($20/ha) in 2014. Today, once again the growth of prices for supply of industrial resources has overcome the growth of prices for production of agriculture products that seriously has limited the development of the agro industry. The authors consider that the success of the grain industry depends on combination of the following factors: 1) modern equipment and technology; 2) qualified professionals; 3) state financial support; 4) reasonable credit resources. Now nobody needs production at any cost, it necessary to lower the cost of grain, to get the maximum profit and invest it in modernization of the enterprise. To increase productivity, to produce more at a less cost. For producers of grain it's time to invest in the development of their own livestock, or they will be late for this growing market. This vector of development will improve the stability of the grain business and the accompanying livestock, will reduce the seasonal dependence of financial flows, reduce unit costs, increase profitability, competitiveness, expand business, create new jobs, increase the number of its buyers

The paper clarifies the conceptual apparatus of subjects of small farms in agriculture, sup-plemented theory of the balance development of the market products, systematized the in-struments of state control of the development process of SFB in AIC subject to the condi-tions of economic space WTO

The article highlights high level of agricultural production and promising export potential of the Krasnodar region. The authors provide analysis of market segments of export growth in grain business, consider opportunities of increasing competitiveness by improving production of grain, import substitution, and focusing on export. It is noted, that the cost of imported food in value chain terms in our country had reached an enormous rate, and that government had realized the need of strengthening food security and transferring production of traditional produce, which are forming the basis of consumption of the local population, to the domestic market. The authors point out that we need temporary moderate state protectionism and protection of the domestic market with the aim of modernizing the economy, attracting investors in the important fields of production with high risks. The main problems and solutions that will help to further successful implementation of this strategy in the sectors of grain economy are also defined. The article shows that the Krasnodar region has the most effective rural industrial structure, the best climate in the country, enlarged crop rotation, cheap labor resources, extensive experience in agricultural business. The authors propose adopting a set of measures of reducing systemic risks and enhancing competition in grain business; to reduce lending rates to 3-5 % to revive the lost ground in livestock breeding, particularly in pig and cattle, the basis of which is the production of grain, and also improve the scheme of distribution of state support

The economic position of the agricultural sector of the Krasnodar region and the place of small business in economy of the region is considered. It is noted that in structure of agricultural production of the country today the region produces 8%, in gross regional product – about 13% of the total material production. The main share of agricultural production is still produced by agricultural organizations, in 2013, they generated more than 61% of total production, farm population - 24%, domestic farms - 15%. Regional plant growing today produces more than 72% of all agricultural products. In the sphere of animal husbandry, the authors recommend stabilizing dairy herd, to restore the normal functioning of pig farms, build and reconstruct farms and complexes, to increase the supply of quality feeds, to restore the productivity of animals and poultry, the quality level of the staffing industry. It is noted that the production of milk has become a pretty beneficial business; its profitability has risen to 37%. But meat production remains unprofitable due to weak motivation of investing, and problems with lending. There are also serious problems in technical support, especially to the sector of small farm management. As a result, producers suffer from significant financial losses due to the great timing of major agricultural companies. Attention is drawn to the unused opportunities of leasing machinery and equipment, negative policy of low wages for rural workers, and high number of farms which are in bankruptcy proceedings. To increase the stability of development of the agrarian economy, the authors recommend taking into account the peculiarities of financial-economic activity of small rural businesses