Shevchenko O. V.

Dnipropetrovsk State University of Agriculture and Economics (Ukraine)

"GREEN" (ENVIRONMENTAL) LOGISTICS IN AGRARIAN SECTOR OF ECONOMY

 

Strengthening of environmental, social and moral problems and the growth of the living standard of population increase people worries on the results of the economic activity in the agricultural sector.

The modern stage of entrepreneurship development considers logistics as one of the factors of environmental preservation, since logistics performs functions of supply, moving, storage and delivery of finished products to customers.

The modern system agrologistics in Ukraine has the following features [1]:

– insufficient level of provision of agricultural producers with storage facilities for the storage of grain, fruits and vegetables;

 the poor state of roads, access roads and the deterioration of their transport and operational performance because of excessive vehicle loading, which leads to deterioration in the quality of goods and increases the delivery time, increasing its cost;

– imperfection of the system of wholesale distribution of agricultural products;

– slow consolidation of small producers to create or join existing agricultural service cooperatives, which would allow the formation of a consignment of products for distribution and reduce logistics costs.

As a result, the modern state of agricultural logistics does not meet requirements and cause economic losses to the agricultural producers and other financial institutions that participate in the promotion of agricultural products on the markets.

As above factors have an unfavourable impact on the environment, so in terms of the environment, the concept of agricultural logistics must consider not only resource-saving logistics processes, but also the reduction of harmful emissions and the disposal or recycling of residues. "Green" (environmental) logistics combines the given guidelines [3].

The main purpose of "green" logistics management is to obtain integral ecology and economy result as the effect of process optimization in the flows of the production logistics system, which will ensure: reduction of rejects and loss of resources during storage and transportation; reduction of waste and improving the overall environmental quality of products (services).

To achieve its goal "green" logistics provides the following measures to reduce harmful effects on the environment and improve the economic result of the business activities:

– selection of raw materials suppliers according to the criterion of maximum reduction of production waste (what materials it uses, how recycles waste,  how reduces fuel consumption, etc);

– adherence to the policy of "zero defects";

– reduction of inventory through planning system improvement and costs regulation as a consequence of reducing the amount of waste produced over the same period of time;

– transportation by optimal routes, which implies the reduction of empty vehicles mileage;

– use of reverse containers to facilitate reuse packaging materials and reduce waste;

– improvement of the packaging in which products are stored.

Realizing significant losses due to agrologistics suboptimal structure, Ukrainian agrarians initiate self-improve of their own logistics system, but it's not enough: all the events have unitary and chaotic character. Effective formation of a "green" logistics must become a mandatory element of improving the infrastructure of the national economy as it will increase the farms profitability by reducing overhead costs, reduce the length of goods turnover and to create a continuous chain of material management, that in general will help to reduce losses of crops grown, improving the population supply with food products at more affordable prices, promotion of products of domestic agricultural producers on international markets, increasing environmental conservation and energy independence.

However, despite the prospects and the performance of "green" logistics introduction, this area remains very expensive and has advantages only in the long term perspective [4]. Therefore, the government needs to encourage farmers to reform by implementing a system of credits, harmonized tax laws and other levers of influence. After all, "green logistics" is an example of socially useful and business and income symbiosis of ecology and economy, which satisfies conditions such as environmental preservation and profitability growth of agricultural activities [2].

 

The list of references:

1. Zhurakovs'ka L. A. Pershocherhovi zakhody shchodo rozvytku ahrarnoyi lohistyky v Ukrayini [Åëåêòðîííèé ðåñóðñ] / L. A. Zhurakovs'ka. – Ðåæèì äîñòóïó : http://www.niss.gov.ua/articles/1589/

2. Mashchak N. M. Stratehichna uzhodzhenist' lohistychnoyi diyal'nosti pidpryyemstva na ekolohichnykh zasadakh / N. M. Mashchak // Marketynh i menedzhment innovatsiy. – 2011. – ¹4. – S. 282.

3. Rodrigue J.-P. Green logistics (the paradoxes of) / J.-P. Rodrigue, B. Slack, C. Comtois. – London : Pergamon – 2001. – P. 339–350.

4. Rogers Ds. An examination of reverse logistics practices / Ds. Rogers. R. Tibben-Lembke // Jounal of Business Logistics. – 2001. – # 22 (2) – P. 129–145.