THEORETICAL PRINCIPLES OF DIVERSIFICATION AS AN AGRICULTURAL INDUSTRY DEVELOPMENT STRATEGY

Abstract

The article is about the problem of diversification of agricultural enterprises as a development strategy. The importance of the diversification of agricultural enterprises is determined by the possibility of ensuring a high level of competitiveness in the local and global markets, innovative development, improving the efficiency of functioning in a market economy. The theoretical and methodological basis for the scientific research were the provisions of national and foreign economic science on the implementation of diversification in the context of the development of agricultural enterprises The term "diversification" is used in the scientific literature. However, there is no clear definition of this term, because it is the subject of study of many sciences (geographical, economic, social, environmental). In the system of market relations various aspects of diversification are demonstrated The essence of the concept of "enterprise diversification" is investigated, its place in ensuring sustainable development of the enterprise is determined. The problems in the implementation of diversification processes by agricultural enterprises in Ukraine at the present stage of agricultural development are identified. The role of production diversification in increasing the efficiency of agricultural enterprises is shown. The methodological principles of diversification of agricultural development are selected. Based on the peculiarities of the industry and existing problems, the introduction of diversified processes to ensure the development of agricultural enterprises is substantiated. The systematization of the reasons for diversification activities and the effects of its application will contribute to deepening the understanding of the importance of its role for the prospects of stable development of the enterprise, ensuring and strengthening its strategic stability. Based on the specifics of agricultural activities, the types of diversification are proposed, which will contribute not only to strengthening the competitive position but also to increasing competitiveness, increasing profits and profitability.