The Role of Economic Concentration in Agriculture

Abstract

In article theoretical questions of specialisation and concentration of an agricultural production are taken up, long dynamics of gross output of plant growing and animal industries is resulted, the structure total and an agriculture commodity output is investigated. The basic directions on perfection of specialisation and concentration in the agricultural enterprises are defined.

Introduction

I. INTRODUCTION

The specialization of agriculture is one of the forms of social division of labor, which characterizes the production direction of administrative and economic units for obtaining a certain type of agricultural product, which is the main one for a given region or economy and occupies the largest share in the total volume of production.

The process of social division of labor is associated with the growth of productive forces. Strengthening the material and technical base of agriculture, increasing the supply of agricultural machinery and equipment, mineral fertilizers and combined feed by industry to collective farms and state farms, the use of the achievements of science and technology, the growth of the professional skills of workers, as well as the development and use of all other elements of the productive forces of society create an economic basis. to further the division of labor in agriculture, to accelerate the rate of its specialization and concentration.

The process of social division of labor occurs in all sectors of the national economy, including agriculture. However, agricultural production has its own distinctive features, reflecting the laws of economic and natural reproduction processes, in one way or another affecting the level of social division of labor in the industry. The peculiarity of agricultural production lies in the fact that in this industry a person deals, on the one hand, with machine industrial production, and on the other, with soil and living organisms. Therefore, the division of labor in agriculture cannot occur as deeply as it takes place in industry, where, along with the division of labor in the production of certain types of products, there is a division of labor in technological processes, in the production of individual parts or parts of products. The inextricable link between agricultural production and soil and climatic conditions also necessitates a geographical division of labor.

The specialization of an agricultural zone or a separate enterprise consists in identifying the main industry and creating conditions for its predominant development. It characterizes the production direction and determines the sectoral structure of the zone or economy.

The rational organization of production in most agricultural enterprises is achieved by specializing in one or two main branches of crop production and one or two animal husbandry, in combination with a number of additional and subsidiary branches.

The specifics of the specialization of agricultural production does not at all mean that each farm must have all sectors, sow all crops and breed all types of livestock that are possible under given natural and economic conditions. A large number of industries inevitably leads to their grinding, reduces the level of concentration of production, which negatively affects the efficiency of management.

The economic significance of the rational specialization of agricultural production lies in the fact that it creates conditions for more efficient use of the main means of production - land. On this basis, increasing the quantity and improving the quality of crop and livestock products is the main task of agriculture. Specialization opens up wide opportunities for further improving the use of rural labor resources, significantly changes the professional structure of crop and livestock workers, improves the qualifications and specialization of personnel, which ultimately contributes to an increase in agricultural labor productivity. Specialization is a decisive condition for increasing the efficiency of the use of capital investments and fixed assets, introducing the achievements of scientific and technological progress and best practices, as well as intensive technologies, into production. With specialization, cost reduction and an increase in the profitability of production are achieved.

In economic science and practice, depending on the object of specialization, the following forms of specialization are distinguished: zonal, inter-farm, on-farm and intra-industry. Zonal specialization is the production direction of agriculture of a zone, republic, region, administrative region. It characterizes the composition of the main, additional and ancillary industries, their combination and quantitative ratio.

Zonal specialization reflects the territorial distribution of agriculture. Economic specialization shows what the main commodity products are produced by this or that economy, determines the production face of each enterprise. The essence of on-farm specialization of agricultural production lies in the rational distribution of industries and the production of certain types of products by farm units, taking into account their specific conditions. With on-farm specialization, each department, farm, brigade specializes in the production of one or more types of products or one stage of the production process.

On a technological basis, branch and intra-branch specializations are distinguished. Specialization, in which an agricultural enterprise performs the entire technological cycle, up to the production of finished products, is called branch specialization.

Intra-industry specialization is based on the division of the technological cycle and the assignment of individual stages to different enterprises. At the same time, each farm does not carry out the entire finished cycle of production, but specializes in the implementation of a certain individual stage. Intra-industry specialization can also occur within one economy, when separate stages of obtaining products are carried out in different intra-economic units.

The main economic indicator that characterizes the specialization of an agricultural enterprise is the structure of commercial agricultural products and, above all, the share of products of the main industry, reflecting the level of specialization. The smaller the number of commodity branches, the higher the level of specialization, and, consequently, the more perfect the organization and efficiency of production.

The specialization of the economy to a certain extent is characterized by the level of marketability, the volume of marketable products per 100 hectares of agricultural land, the number of industries, the structure of gross output, fixed assets and capital investments, the structure of sown areas, livestock, as well as the density of livestock per 100 hectares of agricultural land . An indicator of the specialization of on-farm subdivisions is the structure of gross agricultural output.

The concentration of production is a reflection of scientific and technological progress. Strengthening the concentration of agricultural production is the most important prerequisite and condition for the further development of scientific and technological progress in the industry and increasing its economic efficiency.

In the concentration of production, the operation of the economic law of the superiority of large-scale production over small-scale production is manifested. According to this law, large-scale production has great technical and economic advantages compared to small ones.

The material basis of concentration in agriculture is the continuous improvement of the productive forces as a result of scientific and technological progress. In the absence of machines and manual labor, the concentration of production is very limited. As machines appear and production technology becomes more complex on this basis, an objective need arises to organize large-scale production by concentrating at one enterprise a greater number of means of production, labor and output.

However, the superiority of large-scale production over small-scale production is not unlimited, it has its limits. In agriculture, which is characterized by great complexity and dependence on objective natural, economic, technical, historical and other factors of production, the manifestation of the law of the advantage of large-scale production over small-scale production, all the more, is not absolute.

The concentration of agricultural production is carried out in two directions: within the enterprise and through inter-farm cooperation and the creation of highly specialized farms. In the first case, favorable material and technical conditions are created for conducting individual agricultural branches on a large scale due to their concentration in production units or in areas that have the best conditions for this industry. In the second case, the increase in the concentration of production is based on a further deepening of the division of labor in agriculture between individual enterprises or in the cooperation of a number of farms in the production of some agricultural product.

The process of concentration of agricultural production is carried out steadily. Each level of development of the productive forces and the organization of agricultural production corresponds to its specific size of farms and their subdivisions. Therefore, the problem of establishing the rational size of agricultural enterprises remains relevant. The rational sizes of farms, branches and business units in agriculture are those that, with a certain specialization and intensity, the achieved level of mechanization of production and the availability of labor resources, provide the most efficient combination and use of all factors of production and obtain the maximum output per unit of land area at the lowest labor costs.

The main goal of the specialization of agriculture is the systematic increase in the production of those products for the creation of which in a given region (farm) there are the most favorable natural and economic conditions that allow it to be produced at the lowest cost.

It goes without saying that specialization in agriculture in the production of any product does not exclude, but, on the contrary, implies a certain combination and combination with other sectors in order to more fully and rationally use the land, material and labor resources of the economy. As in industry, in agriculture the growth of the productive forces determines the social division of labor on the basis of the concentration and specialization of the production of products. At the same time, the nature and depth of specialization have their own characteristics associated with the characteristics of the industry itself, based on land and having a seasonal nature of production.

On the one hand, the development of productive forces creates favorable conditions for the concentration of production in agriculture, on the other hand, the very nature of agricultural production requires a combination of various sectors in it. In this, that is, in the unity of contradictions, caused, on the one hand, by the need to combine and, on the other hand, the requirements of the productive forces to reduce the number of industries in enterprises in order to increase the level of concentration of production in each economy, lies the dialectic of the development of specialization in agricultural production.

References

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