Prerequisites for agro-industrial integration development

Abstract

In this article, the author attempts to identify and analyze the main prerequisites of agro-industrial integration in Ukraine at the institutional level: the institutional environment and transaction costs; forms and mechanisms of interaction between the participants, the measures of state support. The implicit constraints of integration processes in the investigated area were examined. A combined approach to a reasonable assessment of the benefits of integration was proposed. Finding a balance between the obvious economic interests and implicit constraints will actively involve farmers in the integration processes and thus contribute to the removal of the domestic agricultural sector out of the crisis.