Business models of investments in agro-food systems




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


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


Prjami investycii' (akcionernyj kapital) v ekonomici Ukrai'ny / z Ukrai'ny za vydamy ekonomichnoi' dijal'nosti (za periody z pochatku roku, shhokvartal'no). Derzhavna statystychna sluzhba Ukrai'ny [Direct investments (share capital) in the economy of Ukraine / from Ukraine by types of economic activity (for the periods from the beginning of the year, quarterly). State Statistical Service of Ukraine]. (2019). Retrieved from [in Ukrainian].

Principles for Responsible Agriculture and Food Systems. Committee on World Food Security. (2014). Retrieved from [in English].

Performance Standards on Environmental and Social Sustainability. International Finance Corporation. (2012). Retrieved from [in English].

Guidance for Responsible Agricultural Supply Chains. OECD-FAO. (2016). Retrieved from [in English].

Responsible Land-Based Investment: Practical Guide for the Private Sector. USAID. (2015). Retrieved from [in English].

Principles for responsible agricultural investment that respects rights, livelihoods and resources (PRAI). UNCTAD. FAO. IFAD. World Bank. (2012). Retrieved from [in English].

Vhugen, D. (2016). Responsible governance of tenure: a technical guide for investors. Food and Agriculture Organization of the United Nations. Retrieved from [in English].

Minot, N., & Ronchi, L. (2015). Contract farming: risks and benefits of partnership between farmers and firms. Viewpoint: public policy for the private sector, 344 [in English].

Glover, S. & Jones, S. (2016). Can commercial farming promote rural dynamism in sub-Saharan Africa? UNU-WIDER. Retrieved from [in English].

Mirza, H., Goodman, Z., & Agostini, A. (2015). Responsible Agricultural Investment: Drawing upon Best Practices in Existing Initiatives. Transnational Corporations Journal, 22 [in English]

Berger, T. & Cotula, L. (2017). Improving Accountability in Agricultural Investments: Reflections from Legal Empowerment Initiatives in West Africa. International Institute for Environment and Development [in English].

Sharov, O. M. (2015). Pytannja strategii' zaluchennja prjamyh inozemnyh investycij u konteksti dotrymannja interesiv ekonomichnoi' bezpeky derzhavy [Issues of foreign direct investment attraction strategy in the context of respecting the economic security interests of the state] Strategichni priorytety – Strategic priorities, 1 (34), 41-50 [in Ukrainian].

Nagachevs'ka, T. V., & Plastovec', N. S. (2015). Osoblyvosti inozemnogo investuvannja na riznyh stadijah global'nogo vyrobnycho-zbutovogo lancjuga agrobiznesu [Features of foreign investment at different stages of the global agribusiness production and supply chain]. Visnyk Kyivs'kogo nacional'nogo universytetu im. Tarasa Shevchenka – Bulletin of Taras Shevchenko National University of Kyiv,8 (173). Series: Economics. Retrieved from [in Ukrainian].

Mel'nyk, T. M., & Kasjanok, K. G. (2017). Problemy zaluchennja ta vykorystannja mizhnarodnyh investycij v ekonomici Ukrai'ny [Problems of attraction and use of international investments in the economy of Ukraine]. Marketyng i menedzhment innovacij–Marketing and innovation management,1, 253-270. Retrieved from [in Ukrainian].

Global Trends in GDP, Agriculture Value Added, and Food-Processing Value Added. FAOSTAT. (2017). Retrieved from [in English].

Peretvorennja nashogo svitu: Porjadok dennyj u sferi stalogo rozvytku do 2030 roku. OON [The transformation of our world: an Agenda for sustainable development until 2030.UN]. (2018). Retrieved from [in Ukrainian].

Neshejm, M. K. (2015). Model' dlja ocinky vplyvu prodovol'choi' systemy. Instytut medycyny SShA [A model for assessing the impact of the food system. US Institute of Medicine] [in Ukrainian].

Vybor investicionnyh reshenij dlja formirovanija bolee ustojchivyh pro­dovol'stvennyh sistem. Postojannyj komitet sistemy Organizacii Obedi­nennyh Nacij po voprosam pitanija [The choice of invest ment decisions to create moresustainable food systems. The United Nations Standing Committee on Nutrition]. (2016). Retrieved from [in Russian].

Responsible Agricultural Investment (RAI): Knowledge into Action Notes series. The World Bank. (2018). Retrieved from en/topic/agriculture/publication/responsible-agricultural-investment [in English].



How to Cite

SAMSONOVA Л. (2020). Business models of investments in agro-food systems. oreign rade: conomics, inance, aw, 109(2), 115–129.