THE ROLE AND IMPORTANCE OF DIVERSIFICATION IN ACHIEVING THE SECURITY OF AGRICULTURAL BUSINESS

Abstract

A significant aggravation of competitive factors and complication of business environment factors characterizes the development of modern business. Ensuring the security of the functioning of business entities requires the selection and use of practical tools for minimizing risks and threats. One of the most influential and widespread tools for achieving the state of security of companies is the diversification of their economic activities. The security of business entities in the agricultural sector is essential for the economy and society. The choice of options for the development and achievement of the state of security is influenced by a significant number of factors, the set and nature of which form the basis of a choice between diversification and specialization of economic activity. The article examines the modern determinants of diversification development in the agricultural business. With the implementation of the principles of sustainable development in the practical activities of agricultural management, diversification acquires a new meaning and functionality. The modern understanding of the content of agro-diversification takes into account the need for sustainable development of agriculture and rural areas. In this context, diversification can be considered a marketing approach to management, a method of reducing risk and achieving business security, a tool for achieving sustainable development goals, and increasing the human capital of agricultural businesses. The article examines the main bonuses that agro-diversification can provide under the principles of sustainable development. The main instruments of diversification in the context of a strategic mechanism for reducing risk and increasing the security of agribusiness are defined. As such tools, the following are proposed: expansion of the range of crops, revival of livestock industries, expansion of organic production, and intensification of the development of non-agricultural activities (rural, green tourism). The prospects and bonuses from the diversification of activities of agricultural enterprises for agriculture and rural areas, which are of a strategic nature of implementation, are substantiated. The modern spectrum of views on the essence and functional content of agro-diversification is outlined, considering the principles of agribusiness's sustainable development.