Vertical Integration as a Tool for the Agricultural Development of Territorial Communities

Abstract

The relevance of the study is determined by the need to increase the efficiency of agricultural production and strengthen the economic self-sufficiency of territorial communities through the implementation of vertical integration mechanisms for small and medium-sized enterprises. Purposeof the article is to identify the main incentives and obstacles to the formation and development of integration processes for small and medium-sized enterprises specializing in the cultivation of oil crops, as well as to examine the potential of vertical integration at the level of territorial communities. Methods. The study applies a systemic approach to examining integration processes in the agricultural sector, which made it possible to comprehensively assess the impact of vertical integration on community development. Comparative and economic analysis, structural-logical, generalization and induction methods were used, along with empirical methods of observation and statistical data analysis to evaluate current trends in the production and processing of oil crops within territorial communities. Results. The article highlights the significance of Ukraine’s agricultural sector under the conditions of full-scale war and reveals the key drivers of vertical integration. It substantiates that vertical integration enhances production efficiency, supports the creation of closed production and sales chains, strengthens the financial stability of agricultural enterprises, and promotes the development of social infrastructure in rural areas. The main directions for intensifying integration processes are identified, including the stimulation of cooperation, improvement of state support mechanisms, and attraction of investments. Scientific contribution. The research deepens the theoretical foundations of vertical integration in the agricultural sector and substantiates its role as a tool for improving the financial stability and competitiveness of small and medium-sized agricultural enterprises at the community level, contributing to the formation of an effective model for their sustainable development. The proposed model can serve as a practical basis for strengthening the financial sustainability and self-sufficiency of local agricultural communities during periods of wartime and post-war recovery.