Kereeva A.R.

2 nd year undergraduate student of the speciality «Economy» - 6М050600

Zhetysu State University named after Ilyas Zhansugurov

THE ESSENCE AND ECONOMIC CONTENT,THE CONCEPT OF SUGAR INDUSTRY EFFECTIVE DEVELOPMENT

Science provides many formulations that define the market as an economic category, which is a different form of economic relations between the different economic agents, decision makers in the process of distribution and exchange of produced goods. Market relations can be distinctive in some countries due to historical, social, and other characteristics of the development of market relations, but in the general they characterize the market as a complex and multi-layered economic system.

We consider it necessary to study the sugar market as thesummarizing term that characterizes a certain type of economic performance and formation of economic relations, which is based on the market mechanism. In this case the sugar market relations are not limited to exchange, and include all the commodity-money relations thatregulate the production, sale and consumption of food products [1].

That division of labor was the primary cause of the development of the labor products exchange. The division of labor and the market are related; theyfunction and develop in close cooperation in the historical aspect. However, to reduce the sugar market as an economic category only to the sphere of circulation and exchange in the form of commodities is an error, since the sphereof exchangeis one of the components of reproduction - intermediate between production and consumption.

The state of the raw materials source has a special importance. Management of development resources base is essentially based on theoretical foundations of industrial production placing.Principles of industrial location are the original scientific principles that guide the state in its economic policy in terms of the planned distribution of the productive forces.

Basic principles of placing raw materials and industrial sugar production are:

- The location of the industrial production of sugar near the sources of raw materials or areas of consumption (depend on the ratio of the volume of raw materials and finished products), subject to the production of the required products with the minimum of delay production;

- To ensure that the pace of development of expanded reproduction and growth of labor productivity in manufacturing is required to locate suitable for growing sugar beet climatic zones;

- A rational division of labor based on territoriality in order to best specialization of certain economic areas, and the creation of clusters.

Basis for the development and deployment of the sugar industry of our country are mainly the land, climatic and soil resources.The sugar production is one of the highly industrialized and energy intensive industries, which manufactories are located in two regions of the country.

In Kazakhstan sugar-beet industry is one of the leading food industry contribute to the expanded reproduction of sugar beet.

Closer distribution of production to the raw material sources and across the country helps to avoid excessive long-distance transport of raw materials, fuel, materials and finished products to the places of consumption. The transportation over long distances raises the cost of transport, raises the cost of production and reduces production efficiency. Underlying these factors shaped the concept of raw materials, establishing evidence-based guidelines of public policy in this area to make informed investment and other economic decisions in guaranteed availability of resources, including technology and innovation.

Production concentration is the greatest thing in the food industry. It affects the placement, primarily due for large companies that need to have adequate raw materials. The circle of suppliers is widening with the growth of the enterprise.For the large enterprises is more difficult to select items of their placement and selection of industrial sites, the implementation of measures to create infrastructure, environmental protection and ecological safety of production, etc.

The industry concentrated in the areas of production and consumption has less effect on it due to reduced transport distance. The most important industrial and food processing industry can be ranked depending on the placement of the transport factors as follows: dairy, meat, flour, cereal, sugar beet, confectionery, and bakery.

In a market economic system access information about supply and demand of products and raw materials is becoming a prominent factor of facility location. Enterprises located in areas with well-developed telecommunications infrastructure, have notable competitive advantages [2].

Beet-sugar production is a complex dynamic system, which is under the influence of various factors, including climatic, constantly changing. It must be controlledin order to develop these changes in the right direction, which provides its stability. In the pre-reform period, when the planning system limited the freedom of action of enterprises, and the dynamics and structure of production were determined to adopt plans that basically created the sustainability, and in relation with the other factors of production they provided a systematic approach to the management in order to achieve the production and economic indicators.

The transition to a market economy has led to the rupture of linkages both within the sugar industry, as well as with related industries engaged in his service, but according to the law of Ashby "unmanaged part of any of it fall off."The loss of control over the basic structural units of sugar industry turned a sharp decline of the sugar and the deterioration of the major industrial and economic performance. The primary reason for this was the discontinuation of government support and funding restriction. The liberalization of foreign trade during the period when the country entered market economy and the lack of tax protection measures allowedforeign sugar producers an uncontrolled import to cover the gaps in resources. In this case, the import volume reached a critical level which could lead to the collapse of the industry. Low profitability of sugar production limits its extended reproduction properties.

Market reforms in the economic system were due to objective economic necessity, but reform strategy could be quite different if the institutional reforms were initially subject to economic laws, which, in turn, had its impact on improving the efficiency of the industry and its transition to an innovative model of development.

The present level of agricultural production characterized by the slow growth raises the problem of food security in the country on the first place among the other state priorities that need to be solved urgently. Therefore, a reliable supply of food to the population at the expense of domestic production is of strategic importance. In dealing with this problem there is a special role of agribusiness, the economic importance of which is inextricably linked to the consumer of the value of their products and, above all, food products, which are paramount to the normal life of any human being [3].

Structurally, agribusiness is a subsystem of social production, which includes three areas:

- Group of industries engaged in the production of industrial production for all agricultural industries, production and maintenance of agriculture;

- Directly agriculture itself;

- Industry engaged in the procurement, storage, processing of agricultural products and bringing it in processed form or another form to the consumer.

It includes a number of grocery sub-complexes, the main ones are the grain, meat, milk and fat. Italso includes beet-sugar industry. The structure of the sugar industry is very similar to the structure of agriculture. It operates manufacturing sector specific inputs for cultivation and processing of sugar beet and sugar beet enterprise itself directly and scope of processing, service and trade.

If we are not considering the first sphere we can say that beet-sugar industry is in fact three interrelated single purpose important for agribusiness sector. The first is important in the structure of production of major agricultural products in crop area, the second - refers to the basic branches of the food industry, the third - is the service sector, which includes wholesale and retail trade. The role of trade in sugar production has risen sharply with the transition to a market economy.

Sugar industry is one of the largest food industries. Picture 2 shows a block diagram of interaction among the sugar beet production, which shows the complex and diverse system of forward and backward linkages within the system.

Beet-sugar industry acts as part of a higher level, as certain subsystem interacting with other subsystems through a variety of intra-and inter-industry linkages. It acts as a complete system, differing in certain completeness and therefore has a typical separate economic analysis of the elements of its components.

It should be noted that in the economic literature regarding sugar production are some of the terms such as "sugar industry", "beet sugar industry", "sugar industry", "beet-sugar economy", "sugar beet subcomplex" "beet-sugar production," etc.

To our point of view, the most far-reaching is the term "beet-sugar industry," which is the author's interpretation is as follows: "beet-sugar industry - a complex of industrial, economic and organizational system of interconnected structures of agriculture and food processing industry, trade and service sectors, aimed at production, distribution and management of sugar beet in Kazakhstan, and are common in the goal to satisfy the full necessities of the country in the sugar. "

Being an integral part of APC, beet-sugar industry is influence on its basic sectors (economy, social services, environment, and politics), on the other hand beet-sugar industry feels the macroeconomic changes that determine its development.

Beet-sugar industry refers to highly industrialized and energy intensive industries, which enterprises are located in two regions of the country.

Beet-sugar industry is one of the leading branches of the food industry in Kazakhstan. The main purpose of the sugar beet production is sustainable supply of the country by the socially important food product - sugar. The main criteria that characterize the solution to this problem is ensuring the per capita consumption of sugar-based recommended medical standards in the amount of 37 kg. per year, as well as the ability to produce part of the production for export.

Integration in the market economy with reduction of consumption of animal origin food due to its high cost greatly enhanced the role of sugar in the diet of many social groups, especially those with low incomes, as a source of quick energy replenishment needs, because of its widespread availability and low cost.

The importance of sugar in the food supply is also determined by the technological ability to create its reserves as at the regional level and at the level of the center. Sugar is a mass product with a permanent capacious market sales, it can be stored for a long time and to be widely used by households for various domestic preparations, may be purchased for the future and has a relatively strong demand at any time of year. In the period of social upheaval and economic instability in commodity-money circulation sugar is a highly liquid commodity, a kind of "currency", and one of the relatively common barter goods.

Public sugar consumption is a pure through retail and food service, as well as through the use of other food products, in which production it is necessary to use.

There are several methodological problems in determining the criteria of economic efficiency of sugar industry.

To our mind the effectiveness of sugar beet production is achieved when resources are allocated in a way that allows obtaining of the maximum possible benefit with the efficiency growth of beet sugar production.

Studying the effectiveness of sugar beet sugar industry and related pricing, we have to consider that agricultural production enters as a central part of APC. It determines scales and rates of development of APC fund producing industries by the production goods, and determines the scale and pace of development of the processing industry and infrastructure by its results.

Agriculture is peculiar by the features of the account value of resources and results. The conditions of the problem, conditions for finding the principle of pricing in the agricultural sector follow from it.

In the sugar industry pricing across the three sub-sections:

1) pricing in the sugar beet - definition of evidence-based purchasing price for sugar beet;

2) pricing in the food industry - setting a minimum wholesale price of sugar;

3) pricing in infrastructure - setting the retail price of sugar.

The interaction of objective calls for the establishment of science-based prices for both raw materials - sugar beet, and the final product - sugar [4].

Used literature list:

1 Moldashev AB.Integration development in agriculture.Almaty, Kazakh Research Institute of Economics and Agribusiness, 2000.

2. Esirkepov T.A.,Musabayev N.O. Agricultural Integration: Theory and Practice. Almaty, Kulzhahan, 2001., Pp. 13-14.

3. Sharipov A.K. Current situation in the sugar industry of Kazakhstan. / / 2009. - № 3 "KazEUhabarshysy."

4. Espolov T.I. Efficiency of agriculture in Kazakhstan. -Almaty: Gylym, 2002.