Development of the commodity circulation system of small-scale fruit and vegetable producers

Abstract

Purpose: the authors consider the optimal allocation problem of a regional fruits and vegetables logistics and processing network in this article. Discussion: Because of the Russian agrarian economy transformation, food markets emerged that largely depended on local small-scale production. The products of small-scale sector are competitive in price, but have low commercial qualities. A significant part of the income generated in the selling process distributed in favor of various intermediaries. The authors assume the creation of regional fruits and vegetables logistics and processing networks on a cooperative basis will allow small-scale agricultural producers to overcome the intermediaries’ price dictatorship and obtain a new product quality level. Results: the authors proposed a computation methodology for the optimal regional logistics and processing network placing on the economic and mathematical modeling basis. The methodology approbation results on the Lipetsk region data confirmed the possibility of model practical use for the agricultural products selling infrastructure design.