Diversification as a strategy of sustainable development of agricultural enterprises

Serhiy Nikitchenko


Introduction. The economic expediency of the diversification of production activities is determined by its impact on the economic and financial state of the enterprise, since the result of any diversification should be the reduction of risk and the emergence of synergistic effects, especially in the field of finance, thanks to the possibility of free intra-company transfer of funds to the most dynamically developing areas of activity. The effect of diversification largely depends on the choice of directions (vertical integration, diversification based on existing types of activities, creation of conglomerates).

Goal. On the basis of the generalization of the scientists' research, propose an author's approach to the development of the theoretical foundations of the strategy of diversification of the production and economic activity of agricultural enterprises.

Method (methodology). The theoretical and methodological basis of the research is a systematic approach to the study of social processes and organizational and economic problems that arise in the activities of agricultural enterprises. The research methodology provides for the use of generally accepted provisions of economic research and the development of specific methodological approaches for in-depth study of the issues.

The results. It has been established that diversification can be carried out with the aim of: strengthening the company's position on the market relative to its main competitors; timely response to changes in the economic situation; transfer of capital from traditional or low-profit industries to new knowledge-intensive and promising or highly profitable industries; equalization of industry seasonal fluctuations and risk reduction; investment of free funds.

In the agrarian sphere, we have highlighted the following main areas of diversification: multidisciplinary activity of agricultural formations; increase in the share of ancillary industries and industries; mergers and acquisitions in the activities of integrated structures; expansion of non-agricultural activities in rural areas in order to increase incomes and employment of the population.


diversification; agricultural enterprise; specialization; integration; strategy

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DOI: http://dx.doi.org/10.35774/econa2022.04.058

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Science Works Journal "Ekonomichnyy analiz"

ISSN 1993-0259 (Print)  ISSN 2219-4649 (Online) DOI: 10.35774/econa

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