THEORETICAL AND METHODOLOGICAL APPROACHES TO THE FORMATION OF VALUE-ADDED CHAINS IN LIVESTOCK PRODUCTION

Abstract

The article substantiates the need to rethink traditional approaches to forming added value in agricultural production, considering modern economic realities. The evolution of the concept of added value is revealed based on classical economic theories, as well as the idea of economic value added (EVA), which allows considering profit, capital costs, intellectual resources, and innovations into account. Key methodological approaches to structuring the value chain are identified, particularly based on M. Porter's model, which distinguishes primary and auxiliary business processes. It is noted that in the conditions of globalization, the participation of enterprises in international value-added chains is of particular importance, which requires strategic management and technological re-equipment. The article considers the concept of the formation of the theory of added value, the life cycle of a product as a value chain, and the main elements of the global value chain, reflecting the study's general theoretical framework. Particular attention is paid to the industry specifics of livestock farming as a component of the agro-food complex. It is determined that added value in this area is formed based on a multi-stage production and sales cycle, which includes feed production, animal husbandry and breeding, primary and secondary processing, packaging, storage, transportation, marketing, and sales. It is substantiated that the largest share of value growth falls on the stages of processing and distribution, which necessitates the need to review the role of intermediaries and introduce unified approaches to calculating costs and revenues. It is summarized that to increase the efficiency of value chains in livestock farming, it is advisable to introduce digital technologies, strengthen cooperative ties, develop infrastructure and improve management decisions.