PROBLEMS AND PERSPECTIVE FOR DEVELOPMENT OF AGROINDUSTRIAL COMPLEX OF UKRAINE
УДК 338.436(477)
Гайдук О.С., студентка 1 року ОС магістр
ХНЕУ ім. С. Кузнеця
The state of the affairs in the economy can be said with reasonable certainty by the nature of the processes taking place in the investment sphere. It is the indicator showing the general state of the country, the value of the national income, the attractiveness for other states. During this period the lack of investment in the branches which are strategically important for the successful pulling of the country out of the crisis can be called a complex problem in the Ukrainian economy. One of the most promising areas for investing is the agro-industrial complex (AIC), as it occupies a special place in the country’s economy and is one of the main economic sectors that determines the conditions for supporting the life of society.
The agro-industrial complex of Ukraine is the largest national economic complex and it includes 4 areas of activity:
- agriculture;
- branches and services that provide agriculture with means of production and material resources;
- branches engaged in the processing of agricultural raw materials;
- infrastructure block that includes the companies which deal with agricultural raw materials procurement, transportation, storage, trade in consumer goods, training for agriculture, construction in the fields of agro-industrial complex.
In the developed countries the agro-industrial complex accounts for a significant proportion of workers, fixed and working capital and GDP. The increase of the population’s standards of living and the provision of food security are largely dependent on the scope of the agro-industrial complex, the perfection of its structure and the efficiency.
Scientific research on the development of world agriculture is considered in the works of leading scholars – classics: S.L. Bru, J.M. Keynes, K.R. McConnell, P. Samuelson, A. Smith and M. Tracy. The study of the place and role of the Ukrainian state in ensuring the stable development of agriculture is presented in the works of such domestic authors: M.P. Vitkovsky, V.P. Galushko, M.Ya. Demyanenko, M.M. Iluk, M.V. Kalinchik, O.M. Karasik, S.M. Kvasha, I.V. Kobuta, P.A. Laiko, Yu.Ya. Luzan, І.І. Lukinov, V.M. Males, M.I. Malik, O.M. Mogilny, L.V. Moldovan, Ya.B. Oliynyk , B.J. Paskhaver, A.V. Fursa, P.T. Sabluk and others.
The purpose of this article is to conduct the analysis of the state in the agricultural sector of Ukraine, identifying existing problems and forecasting the development of the agricultural sector of the Ukrainian economy.
The agricultural sector (agriculture, food and processing industry) ensures food security and food independence of the country, generates 14% of GDP and approximately 55% of the consumption fund. The Prime Minister of Ukraine noted that the country occupies the leading position in the world as an exporting agricultural products country. 14% of GDP is formed by the agricultural sector and another 4% is the processing industry. In the budget for 2018, 7.3 billion UAH is foreseen for the support of the agricultural sector [1].
In addition the agro-industrial complex is one of the budget-creating sectors of the national economy, the share of which in the budget of the country is 8-9% and ranks second among the sectors of the economy in the commodity structure of exports.
Without exaggeration it can be admitted that the agro-industrial complex is the basis of the country’s living activity because it is the agro-industrial complex that includes the branches of the national economy that are responsible for the final production of foodstuffs. It is precisely on the efficiency of the functioning of the agro-industrial complex that the country provides food, feed for livestock and raw materials. Unfortunately, for many years the agro-industrial complex of Ukraine has had persistent problems that hinder the effective activity and regular development.
First and foremost, this is a poor supply of agricultural machinery and agricultural processing industry. It should be taken into account that most enterprises still use the outdated agricultural machinery and equipment with the degree of wear often more than 50%. It should be noted that the provision of equipment per unit of cultivated area in Ukraine is low and does not exceed 60% of the necessary technological needs. This leads to the increased load on the equipment and an increase in the failure rate of the equipment due to inoperability. Although today the most domestic companies produce quite satisfactory agricultural machinery at affordable prices and are ready to provide a high level of service and technical equipment. Therefore, in the case of lack of funds for the purchase of new equipment, it is necessary at least to take agricultural machinery for rent [2].
Secondly, information provision and economic infrastructure in the agro-industrial sector are developing very slowly at a generally low level of financial education in the sector. As a result the sector of agro-industrial complex is characterized by the seasonal flow of cash and lack of own current assets at high payables (a large proportion of which are fines and penalties for overdue payments). The banking sector and taxation system do not take into account the seasonal nature of production which creates the additional difficulties for agrarians.
Thirdly, the key problem of the agro-industrial complex was and still remains the weak social development of villages, which are the main motivators for the development of agriculture. The level of living in the villages and settlements is still considerably inferior to the urban one, thus also having a negative impact on the economy of the agro-industrial complex. There is no possibility of attracting and training young professionals, and this leads to the migration of inhabitants and the extinction of entire villages. As a result, the agriculture dies in the region, as it is the only source of income for the majority.
The process of urbanization remains popular among young people who live in the villages. On the part of the state it is necessary to carry out a number of measures to motivate the able-bodied population of rural areas so that they can have stable employment and salary working in the agricultural sector and thus increasing the standard of living in rural areas.
The development of the agricultural sector requires the formation of a rational structure of the resource potential and the creation of conditions for maximizing its use. In the conditions of development of market relations it is necessary to use scientifically grounded methods of ensuring stable development.
The stable development of the agricultural sector means the process of ensuring the material and ecological well-being of present and future generations, which is achieved by rational use of available resources, while preserving the balance of the natural environment [3, p.8].
The promising direction of the agro-industrial complex development is the review of the whole financial system in order to provide managers with the means to purchase mineral fertilizers, fuel and lubricants, other materials, quality feed in the quantities necessary for effective production. Also such urgent issues are raising wages of peasants which allow the involvement of specialists to the villages and, thus, solve the issue of shortage of skilled personnel.
Despite all the difficulties encountered in the industry, the agro-industrial complex of Ukraine has a great potential for the development and consolidation in leading positions.
Last year Ukraine gathered a record (64.2 million tons) grain harvest. It is created a share for the same record (41.6 million tons) for exports. The supply of agro-industrial products to the new, first of all Asian markets are increasing, the share of which, in contrast to the CIS region, is increasing. The basis for the institutional transformations in the field of management of profile state property is founded.
We cannot predict and take into account in advance the global factors affecting the Ukrainian agro-industrial complex – oil prices, climate changes, crops in food supply countries, world market conditions, although there is a hope that the super-cyclical low commodity prices are coming to an end – and we will see if not their growth, then their stabilization.
Local tendencies are subject to more accurate forecasting. Below there are the main factors that will set the trend in the agricultural sector of Ukraine for this year:
In 2017 the agricultural sector ceases completely to operate a special VAT regime. The tax system transformation, of course, has become a key event in the agro-industrial complex in 2016 and will be the same after the abolition of the privilege in 2017.
We can conclude that the state plays a great role in the development and support of the agricultural sector, but the results of 2018 will depend primarily on the political situation in the country, stabilization of prices for products and macroeconomic indicators. In general, in the absence of complications in the market Ukrainian agro holdings should show a slight increase in the financial indicators. For the efficient activity and systematic development of agro-industrial complexes, it is necessary to form a state support program for attracting investments and innovations.
REFERENCES
Martynov S.V. Provision of Sustainable Development of the Agrarian Sector of the Region: Abstract for the Degree of CCE. – Zhytomyr: State Agro ecological University, 2004 – 23 p.
Martyniuk M. Perspectives-2017: what to expect in Ukrainian agro industrial complex in the new year.
Науковий керівник
старший викладач Решетняк І.О.