Economy, finances, management: Topical issues of science and practical activity

LEVCHUK  Kostyantyn, Doctor of History, Professor, Head of Department of the History of 

Ukraine and philosophy, Vinnytsia National Agrarian University (21008, Vinnytsia, 3, Sonyachna str, 

e-mail: ki_levchuk@i.ua)

The creation of subsidiary enterprises and industries in agricultural enterprises is historically inevitable and economically logical stage of agro-industrial integration. The combination of agricultural production with industrial increases the economic efficiency of management, improves the seasonal use of labour resources, promotes the creation of additional jobs in the countryside, the development of social infrastructure, increasing the production of additional quantities of food products, construction materials, consumer goods.

The main attention in the research of subsidiary production has focused on the present stage of development of agriculture in Ukraine. Insufficient attention is paid to the study of problems and achievements in the development of subsidiary farms in the conditions of socio-economic transformations of the first half of the 90-ies of the XX century.

The basis of the source of the research is the documents of the Department for the development of agriculture and subsidiary production of agriculture and food management in the Vinnytsia region for the years 1992-1996, which are first introduced into scientific circulation.

 The need for normative regulation of the formation and functioning of auxiliary industries arose even during the time of the USSR. On June 20, 1973, the Council of Ministers of the Ukrainian SSR adopted Resolution No. 280 "On measures for the reconciliation of the activity of subsidiary enterprises and craft industries in agriculture". Prior to the ministries and departments, the task was to ensure the further development of subsidiary enterprises and industries in the collective farms, state farms and other agricultural enterprises (main on the processing and storage of agricultural products, the production of construction materials and consumer goods from local raw materials), so that they contribute more complete and uniform within a year of labour resources and strengthen the economy of farms, development of production.

The article deals with the formation and development of subsidiary enterprises in agricultural enterprises of Vinnytsia region. It was clarified that the reform of the agrarian sector, begun in the early 90's of the twentieth century, the introduction of market-based mechanisms of management took place against the backdrop of aggravation of crisis phenomena in the Ukrainian economy. Hyperinflation, the rapid decline of industrial production, the destruction of economic ties between economic entities of the former USSR negatively affected the development of agricultural production.

It was found that the production activity of households somewhat offset the pace of decline in production in agricultural enterprises. Established that the newly established farms remained small-scale, with a low intensity of production.

Quantitative and qualitative indicators of activity of subsidiary enterprises are considered. In the early 90's of the twentieth century in collective farms, state farms, there were more than three thousand subsidiary enterprises, which replenished the regional market with consumer goods of food and non-food groups. In particular, 430 subsidiary enterprises engaged in the production of building materials. There were 78 brick factories, 10 enterprises for the production of big bricks, 315 quarries for the extraction of non-metallic materials. Processing enterprises produced flour, cereals, oils, sausages, canned fruits and vegetables, mineral water, and others. The average annual number of employees was 18.6 thousand people.

It was found that the monopoly of state enterprises for the processing of agricultural products, the low level of procurement prices, the lateness of settlements with commodity producers and the lack of public procurement forced collective farms to increase their own processing capacity.

Development of subsidiary enterprises in agricultural enterprises of Vinnytsia region during the first half of the 90's. occurred against the backdrop of a decline in agricultural production. Households of the population partially replaced the decline in agricultural production in the region. The farms practically did not receive financial assistance from state structures. In these conditions, subsidiary production and industries performed in addition to traditional, well-known functions, and also special, characteristic of the period of the economic crisis of the 1990s, namely: creating the necessary commodity reserves for barter operations of farms under hyperinflation and providing their workers with almost all food products and some industrial goods.

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