Abstract:

Current conditions of agricultural development are responsible for the manifestation of destabilizing factors for the conditions of production and marketing activities and for the possibility of expanded reproduction, the effect of which is the reduction of the economic stability of agricultural producers. Under such conditions, the need for commodity producers to use an approach that involves the development of a sound economic strategy and its implementation in the direction of continuous adaptation to environmental factors is reinforced. The purpose of the study is to develop theoretical positions and practical recommendations for the development of diversification measures, as a factor in the leveling of production and economic activity of agricultural enterprises.

Assessing the level of efficiency of agricultural enterprises, there is a clear picture: the dispersion of productive and financial resources leads to a decrease in the efficiency of their functioning. The most optimal in terms of efficiency are farms that produce 2-3 types of agricultural products, which are part of the livestock and plant industries, and that minimizes production risks.

Consequently, in the case of agribusinesses diversifying into related industries, that is, when existing technologies and equipment can be used to produce new products, this allows us to determine the widest possible range of diversification in related industries. So, if income after diversification is greater than the amount of existing income and income growth, further diversification is appropriate, since it allows you to reduce specific fixed and conditional fixed costs (cost savings are positive).