Green, Blue and Digital Economy Journal (Dec 2020)

ANALYSIS OF THE POTENTIAL AND OPPORTUNITIES FOR AGRICULTURAL PRODUCTION AND AGRICULTURAL PROCESSING IN UKRAINE

  • Svitlana Kushnir,
  • Serhii Zasoba

DOI
https://doi.org/10.30525/2661-5169/2020-2-10
Journal volume & issue
Vol. 1, no. 2

Abstract

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The objective of the article is to study the possibilities of agricultural production and agricultural processing and search for the prospects of development of the industry of Ukraine. Methodology. The following analyses are carried out: profitability and cost-effectiveness (rate of return) of the agricultural products, the level of consumption of basic food products in Ukraine, availability of agricultural machinery at agricultural enterprises, the structure and growth rate of purchase of agricultural machinery at agricultural enterprises of Ukraine. Results. It is proved that a low level of profitability in the agricultural sector is a significant violation of price parity – there is a deterioration in the ratio of the prices of agriculture producers for sold products, and prices for acquired industrial goods, and for the services of commercial and technical purpose, i.e. there is a situation of non-conformity of revenues and costs of agricultural production. It should be noted that the level of the development of the agricultural complex, first of all, is determined by the quality and volume of food consumed by the population. Practical implications. During the country's independence, the profitability of production of all major products has decreased significantly and negative trends are observed. Comparing the data of 2019 with 1990, we can see that part of the profitable production has transferred to the unprofitable. The analysis of the dynamics of consumption of major food groups over the past two decades shows that for the period from 2000 to 2014 there was an increase in consumption of milk and dairy products by 12%; meat and meat products by 65%; eggs by 86.7%; potatoes by 4%, vegetables and melons by 60.5%; fruits, berries and grapes by 78.5%; fish and fish products by 32.1%; oils by 39.4%. During this period, there was a decrease in the positions of bread and bread products by 13% and sugar by 1.4%. Value/originality. The low intensity of the agricultural sector of Ukraine is largely due to the neglect of the requirements of agricultural machinery and production technology. It is important to apply the required amount of mineral fertilizers, which is one of the important technological requirements for growing crops. Therefore, the effective development of this industry requires a modern, effective and scientifically sound financing program by attracting investment and soft loans.

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