Scientific and practical journal
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Regional Economy
   



Journal Regional Economy -- re2023.01.102

Repository of Institute of Regional Research UDC 355/359-63:338.054.23; JEL Q10
Navrotskyy, O. A. (2023). Ahrarnyy biznes Ukrayiny: realiyi s'ohodennya [Agricultural business of Ukraine: realities of today]. Rehional'na ekonomika - Regional Economy, 107 (1), 102-109. DOI: https://doi.org/10.36818/1562-0905-2023-1-10 [in Ukrainian].
Sources: 17

Authors



Navrotskyy Ostap Andriyovych

Postgraduate of the Department of enterprise economics of the Ivan Franko National University of Lviv

Contacts: ostap.navrotsky@gmail.com

Webpages:

Resume

The world’s food security largely depends on the stability of Ukraine’s agricultural business. The study determines that during 2022, a significant number of agricultural enterprises suffered losses as a result of the armed aggression of the Russian Federation. The occupation of land, the loss of 15-20% of cattle, pigs, and poultry, and the destruction of production facilities and animal husbandry complexes led to the reduction of production in both the crop and animal husbandry sectors. The article highlights the exogenous and endogenous risks to the functioning of the agricultural sector. Internal risks include: loss of production and resource potential of the agricultural sector; liquidation of a significant number of agricultural enterprises; change in specialization due to significant economic losses; destruction of a part of the infrastructure facilities for storage and primary processing of agricultural products; difficulty in selling products on foreign markets. Exogenous risks are described, i.e. the reduction of investments in agricultural production, problems with the purchase and import of fertilizers and plant protection products, and delays in the purchase of modern agricultural machinery. The article reveals that the presence of the listed external risks will have a negative impact on the country’s economy and food security. The measures taken by the government to ensure the sustainability of agrariсultural business are described. The main problematic issues that the government needs to solve in order to ensure the stability of the agricultural business and the possibility of its further effective functioning are outlined, including the provision of conditions for farmers to carry out all the necessary field work; promotion of the restoration of the animal population and the reconstruction of livestock complexes; adaptation of the agricultural policy of Ukraine to the provisions of the Common Agrarian Policy of the EU, bringing the domestic legislation in this area into compliance with the requirements related to Ukraine’s accession to the EU; and making a decision on the extension of the “5-7-9 Affordable Loans” program and increasing the lending limits from UAH 90 million to UAH 180 million per enterprise. Solving these urgent issues will provide an opportunity for agricultural business to work effectively and fill the state treasury.

Keywords:

agricultural business, risks, grain corridor, tax holidays, preferential lending

References

    
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