Velychko O.P.

PhD in Economics, Associated Professor

Dnipropetrovsk State Agrarian University, Ukraine

Logistical infrastructure in agribusiness

In contemporary economic studies the general term “infrastructure” is mainly identified with different types of organizational management.

Thus І. Tsygaliuk and L. Babyk consider infrastructure as a set (complex) of establishments, organizations and other subjects of spheres of circulation, which provide the functionality for the market economy of a country or a separate business [1, p. 148].

Similar approach to defining essence of infrastructure can be found in works by Z. Gerasymchuk and Y. Podernia-Mosiuk. According to them infrastructure is a complex of organizations, establishments, middlemen, which task is in serving any social-economical system for providing the appropriate functionality of that system [2, p. 7].

Profound study of this issue in logistics was carried out by Ye. Krykavskyi and N. Chornopyska. Besides scientists also consider logistical infrastructure as a set of enterprises of different organizational-commercial forms which create organizational-economic conditions for passing of material, informational, financial and labor resources by creating the potential in the corresponding logistical services. However on the other hand they include in the term logistical infrastructure a set of buildings and constructions with necessary equipment for storing the goods, transportation and manipulation means, means of packing, means of receiving, transferring and processing of information and so on [3, p. 109-111].

However in most studies infrastructural elements of agrilogistics are considered in the general system of the producing infrastructure of the agrarian complex.

In our view the term logistical infrastructure in agribusiness should be connected with both organizational and intra- and between organizational establishments. It is reasonable to identify the following separate elements inside it which perform important logistical tasks and provide carrying out of logistical processes and display institutional-objective direction of development in logistics in agricultural sector of economy (Fig. 1).

Fig. 1. Main elements of logistical infrastructure in agribusiness

Source: Author’s development

At that change of material objects in logistical infrastructure in agribusiness is a consequence of management over development of providing logistics.

In general understanding components of theory of institutionalism are such institutions as a country, corporation, organization and establishment. To a certain extent they appear in the system of logistical infrastructure of agrarian entrepreneurship. Most often they achieve statuses of organizational-law forms.

Moreover agrilogistical infrastructure is also a set of objects which have specific location and versatile characteristics.

Furthermore important infrastructural objects in agrilogistics are buildings and constructions with necessary equipment for storing the produce, transportation systems and networks, centers of packing produce, distributing centers and so on. Most often they are intra-organizational logistical formations but could obtain the status of separate organizational or between organizational forms.

Infrastructural objects of agribusiness are connected with a chain of logistical business processes in the field of plant cultivation, among which one of the most important is the process of storing and transporting of the ready produce.

Institutional-objective development of providing agrilogistics is connected with the term “infrastructure” [4, p. 47]. Besides it is reasonable to distinguish institutional (corporations, providers, organizations, establishments and so on) and objective (constructions, buildings, means, systems, networks, centers and so on) elements in logistical infrastructure. Owing to that logistical infrastructure should be connected not only with organizational but also with intra- and between organizational logistical formations and vice versa.

In agrarian logistics important infrastructure object (buildings, constructions with necessary equipment for produce storing, distributional centers, transportation systems and networks and so on.) may achieve a status of independent organizational or between organizational forms, at the same time most often they are intra-organizational logistical formations.

One of the essential consequences of management in development of providing logistics in agrarian enterprises is a change of material objects of logistical infrastructure.

Reference:

1. Tsygaliuk, І.I. & Babyk, L.R. (2007). Ekonomіka pіdpryiemstva (v pytanniakh і vіdpovіdiakh) (Economics of enterprise (in questions and answers)). Kyiv: Tsentr uchbovoi lіteratury (in Ukr.)

2. Gerasymchuk, Z.V. & Podernia-Mosiuk, Yu.A. (2008). Ekonomіchna sutnіst іnvestytsіinoi іnfrastruktury regіonu (Economical essence of the investment infrastructure of the region). Zbіrnyk naukovykh prats Lutskogo natsіonalnogo tekhnіchnogo unіversytetu (Ekonomіchnі nauky) (Collection of works by Lutsk National Technical University (Economical Sciences)), 5(17), 5-7 (in Ukr.)

3. Krykavskyi, Ye.V. & Chornopyska, N.V. (2012). Logіstychnі systemy (Logistical Systems). Lvіv: Vydavnytstvo Lvіvskoi polіtekhnіky (in Ukr.)

4. Velychko, O.P. (2013). Innovative development in logistics and its connection with logistical management and management of logistics. Marketyng ta menedzhment innovatsii (Marketing and Management of Innovations), 1, 45-52