O. Savchuk

Seed production is the basis of agriculture and one of the major branch , providing a stable food production. Ukrainian seed industry has a long tradition and great potential, but not yet fully realized, and requires urgent reform. Seed industry was not ready to function in the new market conditions, including the competition of producers, free pricing, the choice of the production process, the choice of partners, the responsibility for the results of their activities, etc.

Among the many reasons - poor resource base.   As a result we have insufficient amounts of seed production and the level of quality. The need for reorganization of the industry, the aim of which is to build a new organizational and economic model of seed, which helped to increase the economic efficiency of economic links. Creating a robust interactive information system of business relations between the originators of varieties, seed producers and consumers, which will form the optimal ratio of supply and demand, and price situation. Further improvement of state regulation of the seed industry, will ensure the development of the domestic seed production, its protection from unscrupulous vendors and foreign manufacturers operating in the Ukrainian market. Vegetable seed industry is fairly specific, since it deals with a wide range of different species and varieties of vegetable crops. This requires specific technologies and approaches in the production of their seeds, and requires infrastructure and logistics. New players to enter the market of production and sale of seeds is difficult despite the high profitability of the sector seed (20-50%) and a high demand for seeds. This is primarily due to low purchasing power and vegetable producers significant initial costs. However, the reorganization of the old organizational structures in seed is accompanied by the emergence of new enterprises, which differ in size, ownership of the means of production, business activity, economic relations, regional location and seed production of certain crops, and so on. Having achieved better economic benefit, companies can not only due to manufacturing improvements, but also by the choice of  more appropriate organizational structure of their relationship.

The modern world, which is characterized by the globalization of the world economy, standardization of business processes, distribution and subsequent improvement of information and communication technology, the advent of computer networks allows organizations to build a more flexible relationship than vertical integration, and more predictable than the market, which makes it possible to use a more adaptive management framework organizations - a hybrid. Such a structure can be achieved by the use of ICT and e-commerce, which will create a network form of organization of relations between subjects of seed. Network forms are more flexible and adapted to the environment and can respond quickly to changes, and autonomy and market orientation of companies - members of the network will forward them to the client-oriented strategy. Transferring some of its functions to other network participants, companies can strengthen their core functions, to meet their higher quality by developing new approaches and technologies. Reducing transaction costs in the interaction of business entities in the network is also evidence in its favor. Consequently, the using a network of inter-firm organization of subjects of Seed science and using on  its base  eCommerce, іn our opinion, is the best tool for the efficient operation of seed farms.

Key words: vegetable seeds, restructuring, network form of organization, e-commerce.