Vertical integration as a factor of enhancing competitiveness of farming houses

. Globalization processes in economy, transition towards sustainable development model require new ways of adaption to competitive environment. In situation of uncertainty, competitiveness agriculture depends on opportunity of effective interaction between all members of creation and promotion of product from manufacturers of raw material to distribution. It is effective collaboration creates the conditions to elevate competitiveness of all stakeholders. Practice of existing vertically-integrated companies in Ukraine, suggests that this form of engagement can provide lengthy competitive advantages for all participants of association and improve the standard of sphere of the village. Methods. The research is conducted on the basis of system and process approaches to the use of modern methods of change management. The works of domestic and foreign scientists are the materials for this study, as well as their own observations and developments. Such research methods are used in the written article as: comparative and analytical, observation, as well as statistical method of presenting information. Results. The article describes current state and development prospects the agrarian sector of Ukraine, the main results of activity, analyzes a number of negative trends, that hinder of effective activity of agriculture production, including the reduction of gross production of agriculture, need to diversification of the market narrowing of financial base of development of the agriculture, reduction in the number of small agriculture. Position on promising directions of the development of agro- industry market, namely the establishment vertically-integrated groups.Discussion. Future scientific researches should aim to find incentives for stimulating integrational ties in the agrarian sector of the Ukraine.Keywords: integration, integration associations, economic effect, cost savings, development, profit, competitiveness.