Energy aspect of vertical integration in agriculture

Abstract

The paper investigates the state of energy aspects of agricultural integrated companies. The study proved that the integration in the agricultural and industrial complex should be viewed more broadly including bioenergy production. The scheme of relationships within vertical integration has been developed. The comparative efficiency of vertically integrated and non-integrated companies has been examined. Farms and agro-food processing facility strive to reduce energy dependence. On the basis of researches, a new scientific definition has been suggested: an agro-energy company or the agro-energy vertical. For the agro-energy company, the ways of vertical and horizontal integration building have been considered. The authors' vision of the feasibility of alternative fuel production has been presented. Efficiency of biogas production and its utilization (including by-product) has been calculated. It has been proved that the use of by-products increases the profitability of biofuel production. © 2017, Kaprint. All rights reserved.