Journal of Economics

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.