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Paper abstract:

Currently, in the economy of agriculture, forestry and fisheries, food and processing industry of the Kyrgyz Republic, which are the main components of the agricultural sector of the country, there are quite deep issues of the systemic pattern, which determines the importance and need to modernize this field and transfer it to an innovative way of development. The basis of modernization is the need for scientific justification and practical application of new agro-industrial formations that promote a vertical integration, combining agricultural production with processing, marketing, supply and agro-services. The development of these fields is caused by an objective economic process associated, on the one hand, with the social division of labor and its specialization, scientific and technological progress, natural, climatic and economic conditions. On the other hand - with the need for interaction between specialized sectors and types of agricultural and industrial production. Agricultural subjects enter into this unifying movement, trying to reduce the risk associated with their professional activity, dependence on climatic conditions, the spontaneity of the agricultural market, seeking to increase the competitiveness of agricultural production and, accordingly, its profitability. Processing and service enterprises and organizations also want to ensure the stability of income due to the presence of a reliable raw material base, better use of raw materials, improving the quality of their products, their cheaper prices and the expansion of markets. The choice of one or another type of interaction between economic entities depends on the production and economic situation in the regions of the country, the state of the food market, forms of capital association and participation in their management, the capabilities of advanced (parent) enterprises of the agrarian sector.