Posts Tagged ‘grain products’
DEVELOPMENT PROBLEMS grain products sub IN MODERN CONDITIONS
Article EF Amirov, graduate student, a senior lecturer of agricultural economics KGSHA
Grain and its products are the main food of the population, suitable for long storage, transportable if necessary redistribution of the country.
Grain is the major source of income is not only and not for its manufacturers, it poses a significant portion of the proceeds of food industry. Particularly important is the evaluation of grain production in terms of social significance, reliable supply of the population with bread and cereal products, as well as foods derived from products of grain processing. Therefore, to ensure national food security grain and its products are of particular importance as food of strategic importance.
The common problems for all businesses grain products sub are now a number of factors. These are: the unpredictability of the grain market, the lack of information about the situation developing on him, various restrictions on free trade by the municipal authorities; insolvent consumers, the rising costs of production, storage and processing of grain, growing competition and high interest rates the bank for the use of credit and lack of space available for bidding, auctions, tenders, etc. The grain market today dominates the intermediary by dictating the conditions of sale and the producer and consumer zernoproduktsii.
Stimulating the development of Russian grain market is expedient to perform in four directions.
In the first direction, in order to achieve a sustainable supply of grain to stimulate increased production and optimize the structure providing improved relations between the species, the production of marketable grain groups, increase in the proportion of strong and durum wheat.
Should be refined and improved medium-term credit programs of grain producers and increase the funds of the Federal Leasing Fund for the grain-producing farms.
In the second direction, ie To meet the increasing demand for corn, the most realistic recovery in Russia (as far as possible to the volume of 1990) and animal husbandry. Primarily, this can be pigs and poultry as the most maturing industries to meet the needs of the population of the Russian regions, in the production of this industry. Obvious need to increase also reserve and insurance funds, which require activation of the State in this direction.
By the third direction – promoting growth in the structure of supply in the market share of grain products (flour, cereals, breads, rolls, pastries, etc.) – should note the following. Obviously the general trend of decreasing amounts of grain because of organizational reasons and changing economic conditions. Analysis showed that increasing the share of export of grain from the territories, regions, republics of the Russian Federation in the 90-ies. Twentieth century. at lower its output, has led to underloading production capacity of major grain processing enterprises. Regions with sufficient potential across the range of grain processing and production of the required number of bakeries use these powers only for 50 – 60%.
Partial utilization of the productive capacity of processing enterprises, in turn, increases the cost of production and does not give the required amount of financial revenue for their renewal and reconstruction. Proportion of obsolete equipment by major grain processing enterprises exceeds 30%, there is a considerable reduction of production capacities, especially those with the least congestion.
One of the biggest in scale reductions occurred in the baking industry – almost twice. And the most obvious process in the countryside. Russia’s population (mostly rural) due to declining purchasing power has increased to bake bread at home, which is directly one of the factors reducing the production of bread and bakery products operating bread-baking plants and bakeries.
Loss of integrity of the technological system “production – processing – sale of products in grain products sub contributed greatly to elect the procedure of privatization of the third sphere of agribusiness (mainly by a variant of corporatization). As a result, the total volume of shares in privatized to date, harvesting and processing enterprises, the share of grain producers is only 15-16% of the shares. The owners of these businesses are usually private individuals, companies, firms.
In these circumstances, the desire of grain producers receive a larger share in the final price of the product (flour, cereals, breads, etc.) promotes the growth of those who sells such products are produced by processing corn directly on farms or in giving conditions. As a result, the most progressive agricultural enterprises in Russia now have their own mill production (input is 5-10 tons per shift), and almost a third of enterprises prises built and equipped with a bakery – are serious competitors of grain processing enterprises. Their competitiveness is achieved by relatively low-cost raw materials (recycling their own grain), savings on marketing products through its sales network for the labor force (the level of payment in rural areas is two times lower). At the same time on the processing quality characteristics in small shops significantly inferior to large processors, because the output of flour mills small lose on average about 15-20%.
Large specialized grain processing enterprises and elevators to compete with small industries are forced to open up new, sometimes unusual for them to production, to provide various services. Thus, large-scale industrial production mill, occupying a volume of production of flour more than 60% have mastered the production of utility for bread, pastry and confectionery, and bakery company, in turn, equip their mills.
It updates the ordering of the integration process. At the present time has been extended a special type of integration – diversification – which essentially consists in the penetration of large companies in other industries with which it is neither a direct nor an indirect production linkages. When the principles are used to diversify investment and innovation resources – to create large market structures, which combine in a single cycle of grain production, processing, organizing the implementation of grain and products therefrom, providing technical re-grain-producing industries, the introduction of new technologies. This increases the proportion of grain producers in the final product (for example, in bakery products) to 30-35%, giving them the profitability necessary for extended reproduction. The share of processed grain in total sales to rise by almost 1,5 times. That is, the economically rational action massive market structure can improve the value-added grain products sub, while creating conditions for the formation of the grain market, the relevant important economic and soil-climatic potential of Russia. Stimulating the development of such structures also contributes to the problem of “collapse” of the “shadow” market.
For the fourth direction of the grain market, increased exports of grain – must, of course, their production in excess of domestic demand, the structure and quality are competitive on world markets.
Achieving these strategic goals is possible in the implementation of economic instruments and regulatory nature of the market as commodity intervention to ensure the establishment of “buffer” stocks of grains and enhance the maintenance of price on it; pricing agreements, limiting trade allowances, the introduction of deposit grain, machinery warehouse receipts; preferential tariffs, special credits, tax holidays to grain producers, the development of exchange trade, promotion of corporate business entities, closing a full cycle “production – realization” in the grain market and its products.
EFFECTIVE FUNCTIONING grain products sub AIC REPUBLIC OF
Grain grocery subcomplex – structural formation of agro-industrial complex (AIC), which functions in a full economic independence, whose ultimate aim is to satisfy the rational needs of society in the grain and its products throughout the year, while reducing labor and material means to obtain products.
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TOWARDS INTEGRATION grain products sub
Among all crop varieties, which play an important role in human nutrition, special and nothing irreplaceable position belongs to grain production. Characteristically, in all stages of development of human society, the rise and fall of many economies has been directly linked to fluctuations in the level of development of a new grain production.
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ECONOMIC ESSENCE grain products sub AIC, its structure and functions
Recognized the direction of determining the structure of agriculture is to distinguish this industrial-economic system of product verticals. Such formations include, in particular, grain products subsystem. The implementation of the product approach allows to clearly define the purpose grain products sub, to clarify its structure, to provide an independent tselerealizuyuschuyu system.
The meaning of the selection sub as a separate production facility is to provide a coordinated, balanced development of all branches and functional units included in it. One of the major subcomplexes is grain products. Industrial and economic system of industries and functional departments involved in the production of grain and its products, related common goals and economic interests of grain products sub AIC. Its formation and function was based on a number of processes. On the one hand, as the industrialization of agriculture, the translation of its material and technical base of the industrial base the differentiation of the agrarian sector. On the other hand, the social division of labor, increasing the number of independent branches, enterprises, divisions puts the elements of economic structure in a large dependence on each other, from the supply of means of production, their availability of material, financial and human resources.
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IMPROVING THE EFFICIENCY OF STRUCTURAL ELEMENTS OF THE REGIONAL grain products sub THROUGH ECONOMIC MECHANISM OF DISTRIBUTION OF VALUE ADDED
Over the past 40 years, the share price, which is received by agricultural producers in all countries, gradually decreases in proportion to the share price, which is obtained businesses that recycle and sell agribusiness products [1].
For example, a grain grown in agriculture, before becoming a final product – the bread, goes through four stages of processing:
1) collecting, sorting and threshing grain in agriculture;
2) cleaning, drying and storage in elevators;
3) grinding grain mills;
4) baking bread at bakeries.
If, say, the price of grain produced in agriculture, is n units, then when it is handling and processing in the three subsequent stages of this price is still three times the cost of production is included in the elevator, mill, bakery and eventually four summed up at the score of the output of all industries.
However, the real value created at each stage of grain handling and covering the cost of production and income, appears only in the form of wages, depreciation, and profits of this particular company. Therefore, to avoid multiple re-bills, GDP should act as a value of final goods and services and include only the value created (added) at each intermediate stage of processing.
Value added (D) – a value created during the manufacturing process at the enterprise and covers a real contribution to enterprise value creation of a particular product, ie wages, profits and depreciation particular company. Therefore, the value of consumed raw materials, which were acquired from suppliers and the creation of which the company did not participate in the value added generated by the business product is not included.
In other words, the value added – is the gross output of enterprises (or the market price of output) minus the current material costs, but with the inclusion of deductions for depreciation (as the fixed assets of enterprises involved in the creation of a new cost of production). In Soviet practice, this figure was known as value added products [2].
To date are known, the five strategies to increase value added, which remains at the grain producers:
1. The creation of such products, which is characterized by particularly high quality or other characteristics that increase its competitiveness in the market.
2. The decrease in operating expenses, such as through co-operation.
3. Sales of different products together in one package.
4. Production of such grain production, which improves the production efficiency of other structural elements of grain products sub. Example – producers can grow a new variety of wheat with higher gluten content. This will allow the bakery to produce the best products, and they will pay a higher price grain producers.
5. Possession of processors.
In assessing the structural elements of grain products sub, which form the extra cost, we must remember the difference between creating and increasing value.
The increase in cost occurs through a change in cost allocation between these structural elements of grain products sub. These changes are designed to receive agricultural producer a larger share of the cost of goods paid by the final consumer. For activities to increase the share value, which receives a commodity producer, include:
1. Direct Marketing.
2. Vertical integration.
3. Association of producers.
4. Cooperation.
All these activities aim to increase the share of the cost of production for grain producers through their participation in several stages of production, processing and marketing.
Literature
1. Shinkarenko RM value added in agricultural production: ways to increase profitability [electronic resource]. – Mode of access free. – Http://www.uainsur.com/ua/agrar/riski/risk
2. Niyazmetov SH.R GDP and GNP: identification, distribution and settlement [electronic resource]. – Mode of access free.
Structural aspects of grain products sub – 1
The article deals with the structural aspects of grain products sub revealing the essence of this economic system. The characteristics of each of the structural aspects of the phenomenon of product sub. Proves the necessity of such structuring.
Grain products sub though, like other grocery vertical agriculture is characterized by particularly complex. Analysis of the current state of grain products sub allowed the author to organize a number of features inherent in the studied grocery subcomplex and on this basis to propose the following classification of different types of structures, grain products subcomplex.
Grain products sub APC as a complex system has four Main structural aspects: organizational, Reproductive – functional, territorial (regional), and component.
The organizational structure of the investigated product subcomplex includes, according to the candidate as the following elements:
- industries producing capital goods for all the structural elements of grain products sub;
- Rural Agriculture, exercising production grain products and raw materials;
- industry providing bring grain production to the consumer (harvesting, processing grain storage, transportation and implementation). In their number include: flour, cereals, Feed Mill and Pasta industry;
- infrastructure.
Infrastructure grain products sub includes businesses and organizations that serve grain products sub AIC. They provide conditions for the development of production and livelihoods of the population [1].
Reproduction – the functional structure of grain products subcomplex is of five stages of agricultural production:
- production of capital goods;
- agricultural production;
- production Food items consumption of grain products;
- Industrial and Technical Service all stages of the reproductive process;
- implementation of the final product grain products subcomplex consumer.
Reproduction – functional Structure grain products subcomplex shows the ratio of the basic technological production stages of the final product grain products subcomplex and the role each of them in the formation of its value [2].
Territorial (regional) structure of grain products subcomplex includes all the relevant sectors within This territory ie in scale country, republic, region, etc. Their main objective function – the optimization of the dimensions of agricultural and Industry Product of grain raw materials for own production needs of the local population and sales and exchange with consumers other regional grain AIC [3].
Component aspect of structure grain products subcomplex is in presence connectedness separate areas functional areas (blocks) areas and agro-cycles (circuits). The main elements of the component structure of grain products integrated sub are grain food subcomplexes, which are developing on the basis of certain agro-cycles.
Agro-industrial cycle (chain) – is the union of interrelated stages one Production process, which covers production, processing and implementation of grain products. Agribusiness cycles serve basis for the formation of the grain product subcomplex.
Formation of grain products subcomplex and especially its territorial organization depends on the cumulative effects of natural and socio-geographic factors.
However, each factor in particular affect on formation grain products subcomplex in a certain direction.
The greatest influence on the formation of a definite structure grain products subcomplex have the socio-geographic factors as the level of economic development in the territory, scientific and technological progress, the needs of the population products food settlement patterns and the level of security manpower.
Structural proportions in the development of grain products sub is becoming an important factor that contributes to its normal functioning.
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