Business models of investments in agro-food systems

Authors

DOI:

https://doi.org/10.31617/zt.knute.2020(109)09

Keywords:

business model, investment projects, principles of responsible investment, agro-industrial systems, outgrowing, contract farming, distributive farming, joint ventures, farmer alliances.

Abstract

BackgroundThe2008 food price crisis waspowerful impetus for launchinglarge-scale investment process in developing countriesHoweverthe revitalization of the investment process has gradually causednegative impact on local communities.Although the urgency of providing best international practices that encourageprivate investor to findbalance between their own and local interests is urgentgovernments of the countries continue to encourage further investmentsdeprived of clarityconsistencyand orderin the field of agriculture.
Analysis of recent research and publicationsInternational organizationssuch as the Committee on World Food Securitythe Organization for Economic Co-operation and Developmentthe Food and Agriculture Organizationpay considerable attention to this issue.
The purpose of the article is to provide contextual guidancepractical advice on the possibilities of different investment models in the context of the principles of responsible investment in the agricultural sector.
Materials and methodsThe following scientific research methods have been appliedanalysissynthesiscomparisongroupinggeneralizationOfficial papers of international organizationspractical and theoretical publications of foreign scientists were used in the article.
ResultsThe article describes the basic agro-food systems in view of their investment needswhich are the result of accumulated problems in the areas of food qualityfood accesshunger and obesity problemsunbalanced nutrition and health problems of the nationThe principles of responsible investmentwhich have recently become dominant in the development of agricultural areas in many countries around the worldare usually nominal in nature and are leveled by the implementation of investment projectsThe article gives examples of effective combination of investor financial interestssocio-economic interests of the state and local communities.
ConclusionThe problems associated with responsible investment in agro-industrial systems are still quite acute at this stageHoweverwith the assistance of international organizationsthe first steps have been taken to overcome the asymmetry of power between the investor and the local communities of the recipient countries

Author Biography

Liliya SAMSONOVA, Kyiv National University of Trade and Economics

Candidate of Economic Sciences, senior lecturer at the Department of World Economy

References

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Published

2020-04-15

How to Cite

SAMSONOVA Л. (2020). Business models of investments in agro-food systems. oreign rade: conomics, inance, aw, 109(2), 115–129. https://doi.org/10.31617/zt.knute.2020(109)09

Issue

Section

FINANCE AND INVESTMENTS