Classification and development factors of the agro-industrial complex production infrastructure

Classification and role of the agro-industrial complex production infrastructure

Infrastructure — a set of industries and services that support primary production.

Production infrastructure consists of enterprises and organizations involved in material and technical supply, procurement, industrial-technical and transport services, power transmission lines, land reclamation and irrigation facilities, and other industries ensuring the normal functioning of agricultural production.

For agricultural enterprises, specific specialized services such as agrotechnical services, plant protection services, veterinary services, and artificial insemination are of particular importance. In addition, production infrastructure includes repair and technical services. Along with production infrastructure, social and market infrastructures are also distinguished. Fig. 8.1 shows the classification of infrastructure according to several criteria.

The composition and level of development of enterprise infrastructure in agriculture are influenced by:

• external (objective) factors — natural and climatic conditions, relief, water supply, development of the transport network, location of the enterprise, and its distance from transport hubs and product sales points;
• internal factors — the organization's ability, using its own and borrowed funds, to create infrastructure necessary to ensure uninterrupted production: on-farm roads, storage facilities for grain, potatoes, and vegetables, workshops for machinery and equipment repair, garages, sheds and areas for machinery storage, fuel and lubricant warehouses, land reclamation structures, manure storage facilities, and the electrification of production facilities.

The dynamics of commissioning major agricultural enterprise capacities are shown in Table 8.1.

F i g. 8.1. Classification of agricultural infrastructure

The efficiency of production infrastructure manifests itself in the reduction of product losses, timely delivery for processing, preservation and improvement of product quality, increased labor productivity, and lower material and monetary costs per unit of product. The payback period for capital investments in production infrastructure facilities is 3–5 years.

Capital investments are correlated with the effect provided by the operation of the infrastructure facility, which is expressed in savings of labor and material-monetary resources, additional products due to the reduction of losses, an increase in revenue from the sale of higher-quality products, savings on machinery repairs, etc. The state of an industry enterprise's local infrastructure depends on the infrastructure support of the agro-industrial complex of the region, province, or territory, and its development is under the jurisdiction of local authorities.

Social infrastructure and indicators of capacity development

Social infrastructure — facilities for housing and utilities, education and culture, medicine and sports, catering and trade, and public transport — serves the individual, their needs, and interests. It creates favorable conditions for effective production activity and ensures normal social and living conditions for the rural population, including employees of agricultural enterprises and their family members.

T a b l e 8.1. Commissioning of agricultural capacities in the Russian Federation

1585,4 3207,1 5271,7 7044,0 10923,0 20134,2 628 poultry places Grain storage, thousand tons

210,4 168,5 291,1 252,0 299,9 975,2 579 Vegetable/potato storage, thousand tons

13,3 9,2 41,0 53,1 70,9 68,9 749 Hay storage, thousand tons

13,2 14,1 4,1 5,9 1,2 4,8 34 Silage/haylage structures, thousand m3

22,4 38,4 42,2 94,2 76,7 182,0 474

In the 1990s, in rural areas of the Russian Federation, due to a lack of funding, there was a decrease in the commissioning of social facilities and a reduction in their availability to the population. In 1996, during the period of reform and reorganization, social infrastructure facilities were transferred from the jurisdiction of agricultural enterprises to local authorities, as almost all enterprises were operating at a loss or ceasing their activities. However, this measure did not improve the social services for the rural population. While in 1990, a total of 90,000 club and cultural center seats were built across Russia, in 2008, only 4,800 seats were built; for preschool institutions, the figures were 84,000 and 2,600 seats, respectively.

An important indicator of the development of rural social infrastructure is the availability of paved roads. Their construction, which requires large investments, practically ceased during the 1990s and 2001–2005. In 1985, 9.6 thousand km of such roads were built; in 2006, only 0.7 thousand km; in 2008, 1.1 thousand km. The commissioning of these facilities in rural areas intensified from the first years of the implementation of national projects. For example, in rural areas, the commissioning of residential houses increased from 1833.9 thousand m2 in 2003 to 2279.6 thousand m2 in 2006 and to 15,095.2 thousand m2 in 2008.

The goal of the Federal Targeted Program "Social Development of the Village until 2012" is to satisfy socially significant human needs. The effects of its implementation are diverse: ◊ retention of youth and qualified personnel in rural areas; ◊ creation of new jobs; ◊ increase in the life expectancy of rural residents; ◊ creation of conditions equal to urban ones for obtaining education; ◊ overcoming the unfavorable demographic situation; ◊ improvement of the cultural level of the population; ◊ preservation of traditions and revival of folk crafts.

The primary source of funding for the creation of social infrastructure in rural areas is state federal and regional resources, investments from municipalities, and agro-industrial entities. Agricultural enterprises themselves ensure the creation of infrastructure facilities in units, brigades, farms, and workshops. These include occupational health services, medical stations, showers, canteens, break rooms, and other local social infrastructure facilities, including transport vehicles for delivering workers to production sites.

of sectors providing core market activities, which consist of the buying and selling of goods. Market infrastructure includes the material and technical base of trade and distribution enterprises and exchanges (buildings, structures, equipment, etc.), as well as their transport and information support. The most important elements constituting market infrastructure primarily include: ◊ commodity, stock, raw material, and currency exchanges providing intermediary services to buyers and sellers; ◊ trading houses, fairs and auctions, exhibitions and sales, chambers of commerce, etc.; ◊ labor exchanges and employment centers serving labor markets; ◊ communication infrastructure - advertising and information services, consulting companies, transport, and communications; ◊ credit and financial elements of market infrastructure.

The development of foreign trade relations requires the functioning of the customs system and its infrastructure.

The efficiency of market infrastructure is manifested in the reduction of transaction costs, timely satisfaction of buyer demand, and reduction of producer losses.

Investments in the renewal of fixed assets of market infrastructure components pay off through increased sales efficiency, reduced costs per unit of sold product, and the preservation of the product itself and its quality. Among the measures for the development and regulation of market infrastructure for the agro-industrial complex and agriculture, the following are particularly relevant: ◊ development of exchange trading, allowing the agricultural producer to sell exchange-traded goods at market prices without intermediaries and monopoly structures; ◊ information support for agri-food markets; ◊ attraction of state and private investments for the development of wholesale and retail trade; ◊ training of qualified personnel for work in the field of market and other types of infrastructure.

Define property. 2. What is the essence of the three main legal powers regarding property? 3. What does the right of disposal of property mean?

What is characteristic of real estate and what is its main component? 5. What constitutes a property complex? 6. What condition must necessarily be met before a transaction in the real estate market? 7. For what purposes are real estate valuation results used? 8. What benefit do its owners derive from capital? 9. Can capital belong to an individual? 10. What types of capital are distinguished in economics? 11. What is included in physical capital? 12. What does the concept of "human capital" mean? 13. What relates to legal capital? 14. What does the concept of "authorized capital" include? 15. What is the difference between the categories of "capital" and "investment"? 16. Define the concept of infrastructure. 17. Which specific services belong to agricultural infrastructure? 18. What factors determine the composition and level of infrastructure development? 19. How is the efficiency of production infrastructure manifested? 20. What is characteristic of the development of social infrastructure in rural areas? 21. Which social infrastructure facilities are necessary at an agricultural enterprise? 22. List the main elements of market infrastructure. 23. How is the efficiency of market infrastructure manifested?

by man resources that are used to obtain products and provide services. They consist of objects of labor and means