Experts believe that the development of the country is impossible without improving the state of the agricultural sector and the establishment of transport and logistics infrastructure. The economy has been growing for three years, but mostly due to domestic demand. But this factor is not stable. Therefore, it is worth looking for new ways to consolidate the position of the state in the world market. One of the promising areas is agriculture, where the logistics of the agro-industrial complex requires cardinal reforms.
How the logistics of agro-industrial complex and agriculture affects the development of other industries
Experts believe that an important impetus to development may be the improvement of the logistics sector. It is necessary to focus all forces on the creation of alternative ways of transporting products.
The cost of transporting grain accounts for 18% of all costs in the logistics of the agro-industrial complex. If to compare with other countries, in Germany this figure is 8%, in the USA – 6%. Despite a smaller percentage, in these countries, more finance goes to passenger transportation and delivery of high-tech products.
The state has excellent potential for the development of the logistics sector, due to its convenient geographical location. But at this stage of development of the state can not take full advantage of all the possibilities. The problem is the neighborhood with the aggressor country, transport relations with which are terminated. This situation allowed to revise priorities and focus on meeting the demand in the domestic market. To do this, it is necessary to increase the industrial capacity, which will allow supplying higher quality products at a high price.
The development of agriculture is impossible without the reorganization of engineering and logistics agriculture.
Most of the profits of farmers go to update the technical support, which includes equipment, fertilizers, plant protection products, and soil care. In addition, farmers’ funds also cover infrastructure development – the creation of elevators, processing plants and storage facilities for the crop. As a result, the country’s agriculture will be able to reach a new level only if related areas are sufficiently developed. AIC is an incentive for innovative solutions in the logistics and technology industry.
According to experts, there is an acute issue with raw materials. In recent years, foreign capital investment in this sector has grown, but they cannot provide powerful development that would give a significant increase in production volumes.
The multiplication model of the agro-industrial complex affects import-dependent industries, such as agricultural engineering and the chemical industry. Funds received from the export of products are spent on the purchase of foreign equipment and fertilizers, and therefore do not return to the country.
Agriculture and logistics of the agro-industrial complex require comprehensive measures for development, which will significantly strengthen the economy of the state.