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ArticlePDF Available STRATEGIC MANAGEMENT OF THE DEVELOPMENT OF THE POTENTIAL OF AGRICULTURAL ENTERPRISES IN THE CONDITIONS OF SECURITY CHALLENGES AND STRUCTURAL CHANGES IN THE ECONOMY OF UKRAINE * December 2023 * InterConf DOI:10.51582/interconf.19-20.12.2023.006 * License * CC BY-SA 4.0 Authors: Valentyna Stadnyk Valentyna Stadnyk * This person is not on ResearchGate, or hasn't claimed this research yet. Оlga Bykova Оlga Bykova * This person is not on ResearchGate, or hasn't claimed this research yet. Мykola Bykov Мykola Bykov * This person is not on ResearchGate, or hasn't claimed this research yet. Download full-text PDFRead full-text Download full-text PDF Read full-text Download citation Copy link Link copied -------------------------------------------------------------------------------- Read full-text Download citation Copy link Link copied References (19) ABSTRACT Analytical generalization of the state, dynamics and risks of agricultural enterprises of Ukraine was carried out. Emphasis is placed on the problem of the loss of export potential of the agricultural sector in 2022-2023 due to the full-scale invasion of the Russian Federation. Based on the decisions adopted by the state to support agribusiness in the conditions of increasing security risks and uncertainty, the main tasks and directions for the development of the potential of agribusinesses in the strategic perspective are defined. Discover the world's research * 25+ million members * 160+ million publication pages * 2.3+ billion citations Join for free Powered By 00:00/01:41 10 5 ways UK academic institutions can continue attracting researchers despite the uncertainty of Brexit Share Next Stay Public Full-text 1 Available via license: CC BY-SA 4.0 Content may be subject to copyright. MANAGEMENT 64 This work is distributed under the terms of the Creative Commons Attribution-ShareAlike 4.0 International License (https://creativecommons.org/licenses/by-sa/4.0/). Proceedings of the 2nd International Scientific and Practical Conference «Modern Knowledge: Research and Discoveries» (December 19-20, 2023). Vancouver, Canada No 183 DOI 10.51582/interconf.19-20.12.2023.006 Strategic management of the development of the potential of agricultural enterprises in the conditions of security challenges and structural changes in the economy of Ukraine Stadnyk Valentyna1, Bykova Оlga2, Bykov Мykola3 1 Doctor of Economic Sciences, Professor, Professor of the Department of Management and Administration; Khmelnytskyi National University; Ukraine 2 studentin; Khmelnytskyi National University; Ukraine 3 student; Khmelnytskyi National University; Ukraine Abstract. Analytical generalization of the state, dynamics and risks of agricultural enterprises of Ukraine was carried out. Emphasis is placed on the problem of the loss of export potential of the agricultural sector in 2022-2023 due to the full-scale invasion of the Russian Federation. Based on the decisions adopted by the state to support agribusiness in the conditions of increasing security risks and uncertainty, the main tasks and directions for the development of the potential of agribusinesses in the strategic perspective are defined. Keywords: full-scale invasion agribusiness strategic management export strategy opportunity potential MANAGEMENT 65 This work is distributed under the terms of the Creative Commons Attribution-ShareAlike 4.0 International License (https://creativecommons.org/licenses/by-sa/4.0/). Proceedings of the 2nd International Scientific and Practical Conference «Modern Knowledge: Research and Discoveries» (December 19-20, 2023). Vancouver, Canada No 183 Formulation of the problem. The high level of turbulence in the external environment, in which business entities of many countries included in the international division of labour are now, forces management to look for new approaches to the formation of strategic development plans – both in terms of determining the planning horizon and in terms of forming (or reformatting) business models in view of the emergence of new technological opportunities and changes in consumer requests and requirements caused by them. In Ukraine, whose economy has suffered catastrophic destruction as a result of large-scale aggression by the Russian Federation (and continues to suffer further, which brings security risks to the fore when making management decisions), the horizons of strategic planning have narrowed significantly. And the development plans of even those business entities located in relatively safe regions are limited by their insufficient investment opportunities. This also applies to agribusiness, many of whose participants faced problems selling their products after the destruction of the existing logistics chains and the destruction of the infrastructure for long-term storage of the grown products. And although against the background of other sectors of the economy, the agricultural sector maintained profitability in 2022 (the entire economy received UAH 240.4 billion in losses, and the agricultural sector – UAH 87.1 billion in net profit, but this is three times less than in 2021. In many respects this is explained by the loss of the opportunity to farm in the territory temporarily occupied or in the area where hostilities are taking place. In addition, the logistical difficulties currently faced by grain exporters in Ukraine have significantly affected the profitability of grain production, bringing it close to the limit of simple cost recovery. According to some analysts, in the absence of changes, half of farms will change owners next year, which may lead to the collapse of certain areas, the loss of which is from $100 to $250 per hectare [1]. New solutions, diversification of production, optimization of the business structure are needed to maintain the viability of agribusiness processes with orientation to a new strategic perspective. MANAGEMENT 66 This work is distributed under the terms of the Creative Commons Attribution-ShareAlike 4.0 International License (https://creativecommons.org/licenses/by-sa/4.0/). Proceedings of the 2nd International Scientific and Practical Conference «Modern Knowledge: Research and Discoveries» (December 19-20, 2023). Vancouver, Canada No 183 Analysis of the latest research and publications on the problem of strategic management of agribusiness development in the context of the growing global food crisis and large- scale technological shifts in the world economy showed a significant interest in these issues of many scientists. In Ukraine, the main emphasis in scientific research is on the diversification of agricultural production, the transition from the cultivation of monocultures and their subsequent export to the creation of processing industries. Such questions are raised in their works by E. Boyko and O. Boyko [2], M. Dyachenko and V. Zhmudenko [3], P. Izevskyi [4], I. Kuzyk [5], S. Nikitchenko [6], S. Pysarenko with co- authors [7] and many others. One of the trends of such diversification is a change in the structure of crops in favor of industrial crops that can be processed into biofuel in Ukraine [8]. At the same time, there are many other options for the innovative development of agribusiness, in which a business model is formed with the most complete processing of agricultural raw materials and waste-free production, which meets the standards of the “green economy” and generates greater added value [9-12]. That is, a synergy effect is achieved through the creation of complementary productions, which lays the foundation for long-term efficiency and competitiveness, which is the main goal of strategic management [7]. To achieve such an effect, a comprehensive study of the state and trends of the business environment, a relevant assessment of internal opportunities and advantages, and support of partners and other strategic groups of interested parties are necessary. The purpose of the article is an analytical summarization of the state, dynamics and risks of the activities of agricultural enterprises of Ukraine in 2022-2023 and the determination of the main tasks and directions of development of their potential in a strategic perspective, based on the decisions adopted by the state to support agribusiness in the conditions of increasing security risks and uncertainty due to the full-scale invasion of the Russian Federation. Research results. When considering the strategic development of an agribusiness, scientists and practitioners are primarily guided by the structure of its assets – rightly MANAGEMENT 67 This work is distributed under the terms of the Creative Commons Attribution-ShareAlike 4.0 International License (https://creativecommons.org/licenses/by-sa/4.0/). Proceedings of the 2nd International Scientific and Practical Conference «Modern Knowledge: Research and Discoveries» (December 19-20, 2023). Vancouver, Canada No 183 noting that the basis of activity is the strategy of land resource management. Indeed, this element determines the size of the enterprise, specialization, production direction, projected productivity, relations with market counterparties, etc. But the most important thing is that land resources determine the binding of production to the territory, when it is practically impossible to transfer the enterprise without changing the main means and resource of production. During the full-scale invasion of the Russian Federation, the land resources of domestic agricultural producers turned out to be one of the most vulnerable components of their business system. The possibility of their effective use was affected by the problems of occupation of the territory, mining and pollution due to military actions, destruction and degradation of the ecosystem. Added to this was the theft of equipment, the destruction of production facilities and products, which are also tied to the production area. There was an intensive migration of labor resources, a significant increase in risks related to occupational health and safety. As a result, direct damages and indirect losses of Ukrainian agriculture as a result of Russian aggression were estimated at $40.85 billion by the analysts of KSE Agrocenter and the Ministry of Agrarian Policy and Food in the published results of a study conducted according to the methodology of the World Bank and the FAO (Food Program of the United Nations) [13]. The biggest losses were in agricultural machinery – 84,200 units of machinery and equipment were completely or partially damaged in the amount of 2.9 billion dollars. And losses of 1.9 billion dollars occurred as a result of the destruction or theft of 4 million tons of grain and oil crops [14]. In addition, as of February 24, 2022, millions of tons of grain were blocked at the ports of Ukraine due to the war. The reorientation to other logistics routes did take place, but with great difficulty - and this affected the volume and dynamics of the export of grain crops - from March to August 2022, their export decreased by 43-69% (Fig. 1). As can be seen from the graph, in 2021, an increasing export trend was observed, which took place until the end of the year. And in 2022, with the beginning of the war, the situation changed dramatically. And the most MANAGEMENT 68 This work is distributed under the terms of the Creative Commons Attribution-ShareAlike 4.0 International License (https://creativecommons.org/licenses/by-sa/4.0/). Proceedings of the 2nd International Scientific and Practical Conference «Modern Knowledge: Research and Discoveries» (December 19-20, 2023). Vancouver, Canada No 183 catastrophic drop in exports was in March-April 2022. In March, the decline compared to March of the previous year amounted to 54%, in April – already 69%. In the following months, after the opening of the so-called “grain corridor”, export volumes began to grow, albeit rather slowly. And until now, the problem of exporting grain crops for domestic agricultural producers remains as relevant as it was in 2022. Other risks related to production have become no less. Figure 1 Comparative dynamics of Ukraine's export of grain crops, million dollars USA (built according to [15]) To reduce the consequences of adverse events, the state introduced regulatory policies. Thus, starting from March 2022, a number of decisions of the Verkhovna Rada of Ukraine, the Cabinet of Ministers, created conditions for the implementation of both the spring sowing company and the establishment of the export of agricultural products. The Resolution of the Verkhovna Rada of Ukraine “On Adoption as a Basis of the Draft Law of Ukraine on Amendments to Certain Legislative Acts Regarding State Support of Agriculture and MANAGEMENT 69 This work is distributed under the terms of the Creative Commons Attribution-ShareAlike 4.0 International License (https://creativecommons.org/licenses/by-sa/4.0/). Proceedings of the 2nd International Scientific and Practical Conference «Modern Knowledge: Research and Discoveries» (December 19-20, 2023). Vancouver, Canada No 183 Export of Agricultural Products During Martial Law” of June 29, 2023 No. 3204-IX [16; 17]. The Cabinet of Ministers of Ukraine adopted decisions that facilitate the access of agricultural producers to material resources (in particular, fuel and pesticides) under martial law. Passage of customs procedures for the supply of petroleum products and the conditions for transportation of pesticides and agrochemicals by road transport were simplified, zero quotas were introduced for the export of rye, oats, buckwheat, millet, sugar and salt suitable for human consumption. Many efforts were made to restore the export of agricultural products. In May 2022, the European Union launched the “Paths of Solidarity” program. These routes made it possible to speed up exports and the work of customs between Ukraine and EU countries. As a result, according to the Ministry of Agriculture, during the 9 months of the 2022 war, Ukraine managed to export 19 million tons of agricultural products through these alternative routes. In addition, thanks to the efforts of Ukrainian diplomats, with the mediation of the UN and Turkey, from August 1, 2022, the three Black Sea ports “Odesa”, “Chornomorsk” and “Pivdenny” resumed their work for the transportation of food. And by the end of the year, Ukrainian producers managed to export more than 15 million tons of food – primarily grain – to more than 40 countries around the world. The Grain from Ukraine program was launched, within the framework of which Ukrainian grain is exported to countries in Africa and Asia, which suffer the most from the food crisis and need urgent assistance. More than 30 donor states have already joined this program and almost 200 million dollars have been involved [14]. However, these are all measures aimed at maintaining the existing land use model. And it no longer meets the requirements of the times, as it consolidates the raw material specialization of Ukraine on the global market of agricultural products. As domestic scientists rightly note, “currently, the model of development of the national agrarian sphere, which is mainly focused on the extensive use of available resources to increase the volume of production of the mainly raw component of the agricultural product with the aim of MANAGEMENT 70 This work is distributed under the terms of the Creative Commons Attribution-ShareAlike 4.0 International License (https://creativecommons.org/licenses/by-sa/4.0/). Proceedings of the 2nd International Scientific and Practical Conference «Modern Knowledge: Research and Discoveries» (December 19-20, 2023). Vancouver, Canada No 183 maximizing profit in the short term and, accordingly, attracting investments aimed mostly at replenishment working capital and reproduction of production capacities, exhausts itself from the standpoint of environmental and social consequences and in the longer term may lead to negative economic results” [2]. It is obvious that in the post-war period, it is not advisable to return to the extensive model of land use in the agricultural sector – both from the point of view of the business itself, and from the point of view of satisfying the interests of the entire society. After all, as of today, agricultural producers of Ukraine export up to 60% of grown products and processed products, while for domestic consumption – only 20-25%. The preservation of such a structure of export of agricultural products is dangerous even from the point of view of maintaining Ukraine's food security. The availability of production capacity for the processing of agricultural raw materials in a developed country should be sufficient to meet the domestic demand for food products – in all their variety, which makes up the balanced diet of a modern person. But according to estimates by Corteva Agriscience, in 2022, Ukraine significantly worsened its place in the Global Food Security Index, moving from 58th to 71st place out of 113 countries included in the rating in one year [18]. The place in the last third of the list for the huge potential of Ukraine's agricultural production indicates significant shortcomings in the functioning of the industry, which continue to grow as a result of the protracted war. At the same time, statistical data indicate that the production of ready-made food products in Ukraine is decreasing. Thus, in 2020, this decrease amounted to 0.8% compared to 2019; in 2021 – already 5.9% compared to 2020 [19]. And this may indicate that a) the need for food products is decreasing due to the decrease in the population; b) food imports from other countries, especially EU countries, are increasing. The latter indirectly indicates the insufficient competitiveness of the products of domestic processing enterprises. Among the possible reasons are the technological MANAGEMENT 71 This work is distributed under the terms of the Creative Commons Attribution-ShareAlike 4.0 International License (https://creativecommons.org/licenses/by-sa/4.0/). Proceedings of the 2nd International Scientific and Practical Conference «Modern Knowledge: Research and Discoveries» (December 19-20, 2023). Vancouver, Canada No 183 backwardness of production systems, which does not ensure the necessary level of quality of the final product, as well as insufficiently effective marketing support for production (not only branding and advertising are needed, but also extensive and comprehensive analytical studies of the market, which make it possible to determine dynamics and trends consumer preferences. This also affects the structure of the export of agricultural products, where the main positions are occupied by raw materials, and the export of ready-made food products does not exceed 6.8% of the total volume of exported goods. At the same time, almost half of it is the export of processing industry waste (in 2022 it was 2.5% of the total of 5.7%) (Table 1). Table 1 Dynamics of volumes ($ million US) and structure (%) of exports of Ukraine by main commodity groups of agro-industrial products Source: compiled on the basis of [15] Therefore, the state already needs to work out solutions that will stimulate business to implement projects of innovative and technological development of the agricultural sector with an increase in the share of deep processing of agricultural raw materials. This will create the necessary conditions for improving the structure of the export of agricultural products and the development of various types of processing industry. Such conditions include the change in the geography of export of agricultural products under the influence of the continuation of hostilities. In 2021, the leader among MANAGEMENT 72 This work is distributed under the terms of the Creative Commons Attribution-ShareAlike 4.0 International License (https://creativecommons.org/licenses/by-sa/4.0/). Proceedings of the 2nd International Scientific and Practical Conference «Modern Knowledge: Research and Discoveries» (December 19-20, 2023). Vancouver, Canada No 183 Ukraine's trade partner countries was the People's Republic of China, where significant volumes of raw materials, ores, and metal were sent (85% of exports to China are metallurgical products, ore, corn, and sunflower oil). And as of September 2022, China has moved to the 4th position in the ranking of importers of Ukrainian products, giving up the first place to Poland (15.55%). In total, Poland and Romania (7.5%) in 8 months of 2022 accounted for about 23% of Ukrainian exports (and mainly agricultural products), and the total share of the EU reached 62% [20]. And the export to the EU countries of grain, sunflower oil, corn, sugar and other types of agricultural products that have only undergone primary processing complicates relations with national producers of these products (which are mostly small-scale farms). The result of such competition (which has already been called dumping) is manifested in the growth of conflicts at border crossings (grain conflict, transporters' strike) and other types of competitive confrontation. Taking into account the difficult conditions of the war, when financial and military- technical assistance from other countries is desperately needed, such a confrontation is inappropriate and dangerous from a strategic perspective. In the conditions of the continuation of hostilities, it is very difficult to predict the state of agricultural production in 2024. Some independent experts assess it quite pessimistically. The lack of reliable export opportunities causes a decrease in the purchase price, an increase in the cost of logistics costs, costs for conditioning and storage of products. Agricultural enterprises do not have the funds to pay for the seeds, fertilizers, and pesticides that were taken for the 2023 harvest. And the number of such "failures" in agribusiness, most of which are due to the war, is not decreasing, but increasing. The dominance of security risks, which domestic agribusiness continues to face, makes the development of processing industries and animal husbandry more attractive. From the point of view of the general public good, it is the growth of added value within the country and more effective use of its resource potential, which strengthens the position and competitiveness of the national economy on the global MANAGEMENT 73 This work is distributed under the terms of the Creative Commons Attribution-ShareAlike 4.0 International License (https://creativecommons.org/licenses/by-sa/4.0/). Proceedings of the 2nd International Scientific and Practical Conference «Modern Knowledge: Research and Discoveries» (December 19-20, 2023). Vancouver, Canada No 183 market. Therefore, it is in the interests of the state not to support the monopoly of grain producers, but to stimulate investments in the processing industry. These incentives should be tangible for agricultural producers - together with market mechanisms, they will ensure investment flows in the direction needed for the country [21]. And such processes are currently becoming widespread and yielding certain results. Thus, in the safest (western and central) regions of Ukraine, a reorientation of agricultural companies is already taking place to create capacities for deeper processing of products – in order to export products with greater added value to EU countries (especially in the organic products sector [9-11]). For example, instead of exporting fresh raspberries, with which the European market was oversaturated (in 2022/23, raspberry exports from Ukraine exceeded 50% of what was exported by Serbia and 43% of the total volume of frozen raspberries in Poland), Ukrainian business began to rapidly increase the export of frozen raspberries (in deep freezing mode, which increases its consumer value) [22]. And this indicates that the domestic agricultural sector does not develop linearly, but is transformed, responding in a timely manner to changes in the market situation and security factors, forming a relevant picture of the business environment thanks to modern information technologies. That is, domestic agricultural companies should notice new opportunities for business development, which appear even in difficult times for many types of business. For example, it can be the development of animal husbandry - as a way of internal use of significant volumes of grain crops, the prices of which have fallen significantly on the domestic market. According to UCAB (Ukrainian Club of Agrarian Business) analysts, the drop in feed grain prices for July 2022 reached 40% from the same period in 2021. According to certain types of grain crops, the decrease was: fodder wheat – 36% (up to UAH 4,100/t); fodder corn – 33% (up to UAH 4,700/t); fodder barley – 35% (up to UAH 4,000/t); sunflower meal – 70% (up to UAH 3,000/t); soybean meal – 22% (up to UAH 14,000/t) [23]. Of course, this is bad for grain exporters, but it creates favorable conditions for increasing the volume of industrial MANAGEMENT 74 This work is distributed under the terms of the Creative Commons Attribution-ShareAlike 4.0 International License (https://creativecommons.org/licenses/by-sa/4.0/). Proceedings of the 2nd International Scientific and Practical Conference «Modern Knowledge: Research and Discoveries» (December 19-20, 2023). Vancouver, Canada No 183 processing of grain crops at production facilities within the country - and their use for domestic consumption. Fodder grain is the main component of compound feed. Reducing the cost of their production is a positive factor for the development of animal husbandry. However, the production of compound feed requires the addition of trace elements and vitamins, which are mainly imported into Ukraine. Their price has increased by an average of 20-25%, which is due to both the devaluation of the hryvnia and the significant increase in logistics costs. However, in the structure of the price of compound feed, such additives occupy a much smaller share than the price of the grain component. And as a result, the average market prices for compound feed in Ukraine for 7 months of 2022 decreased quite significantly – from 19% for fattening piglets to 32% for fattening pigs weighing more than 65 kg [23]. Another example of a strategic approach to business development is the decision of the Rivne-based company “Vilis” (a large private producer of a wide range of pasta products) to engage in the cultivation of durum wheat in Ukraine, which is required for production. Now they buy wheat for this purpose from Hungary and Italy, since such varieties are not grown in Ukraine [24]. The entry of a large producer of food products (whose products are certified according to international quality standards) into agribusiness in Ukraine will not only reduce its dependence on imported raw materials, but will also make it possible to improve the ecological component of land cultivation and increase the efficiency of the entire production, as it involves the use of new land use technologies. However, these are only a few examples from the multitude of options for changing the policy of using land resources by their owners. Already now Ukraine needs to form a state economic policy for its post-war revival. It is necessary to move away from a raw material orientation and stimulate investments not only to support high-tech projects of the defense industry, but also in the sphere of processing of agricultural raw materials, which is important for increasing the export potential of Ukraine. It is also important to diversify the financial instruments of such development. A MANAGEMENT 75 This work is distributed under the terms of the Creative Commons Attribution-ShareAlike 4.0 International License (https://creativecommons.org/licenses/by-sa/4.0/). Proceedings of the 2nd International Scientific and Practical Conference «Modern Knowledge: Research and Discoveries» (December 19-20, 2023). Vancouver, Canada No 183 number of decisions adopted by the government of Ukraine in the field of investment support for agribusiness (soft loans) and an agreement with the Multilateral Investment Guarantee Agency (MIGA) on investment insurance during hostilities can serve to attract investments for the development of the processing industry [25]. At the same time, a professional analysis of investment risks for the borrower should not be neglected, since it is possible that the declared amount for the implementation of an innovative breakthrough project will not be reimbursed due to the loss of financial stability - if the forecasts made regarding the market demand for products do not come true [26]. Loans to ensure the fulfillment of export agreements can be quite popular financial instruments for reducing the dependence of agribusiness on risks. This is important for agribusiness, which is just starting to work on the international market and seeks to faithfully fulfill its obligations. A significant demand for such lending is evidenced by the fact that in 5 months In 2023, banks granted loans to exporters in the amount of UAH 380.76 million. under insurance coverage of the Export Credit Agency. Thanks to this, the implementation of export agreements in the amount of UAH 1.41 billion has already been financed. This year, the largest amounts of supported exports concern food products (group 21) - UAH 632.171 million. Currently, 8 banks cooperate with EKA for such export support. Six of them (Privatbank, Oschadbank, Ukreximbank, Kredobank, Ukrgasbank, and FUIB) signed agreements with EKA on portfolio insurance of loans granted for the performance of export agreements [27]. An important financial tool for supporting diversification projects and business development is bank lending, the volume of which is increasing every year. So, only since the beginning of 2023, 12.5 thousand agricultural enterprises received 66.1 billion UAH. bank loans for development. Of these, 9.7 thousand agricultural enterprises were financed under the state program “Affordable loans 5-7-9” for almost UAH 38 billion. Grant support for garden and greenhouse development projects is also increasing. A grant program for the development of gardens and greenhouses has been in effect MANAGEMENT 76 This work is distributed under the terms of the Creative Commons Attribution-ShareAlike 4.0 International License (https://creativecommons.org/licenses/by-sa/4.0/). Proceedings of the 2nd International Scientific and Practical Conference «Modern Knowledge: Research and Discoveries» (December 19-20, 2023). Vancouver, Canada No 183 since July 1, 2022. Grants are provided in the amount of no more than 70% of the project cost, but no more than UAH 10 million. Employment of the required number of employees is a mandatory condition. For gardens – 5-10 permanent and 125- 425 seasonal, depending on the name of the plantations. For greenhouses – at least 4 permanent and 10 seasonal per hectare. Since the beginning of 2023, under this program, farmers have received over UAH 550 million. grant support. Of them, 133 farms received grants in the amount of UAH 556.2 million. (108 million hrn for orchards, 432.3 million hrn for berry orchards and vineyards); 25 farms received a total of 123.9 million for the development of greenhouses [28]. In September 2023, the emphasis in the “5-7-9” program changed – towards the support of investment projects for energy modernization and processing. The amount of lending for such projects has been increased to UAH 150 million, and the term is up to 10 years. Taking into account the entrepreneur's own 30% of funds, this will amount to UAH 200- 220 million, which is enough to build a processing enterprise. This can contribute to the growth of export potential and changes in its structure. An important decision of the state is the adoption in September 2022 of a number of by-laws to the Law on Industrial Parks, which approved the procedure for exempting residents from duty and VAT on equipment – they will be able to direct the funds exempted from taxation to the implementation of the latest technologies, the creation or re-equipment of the material and technical base , increase in production volume [29; 30]. Such parks are convenient sites for relocated enterprises and a way to solve the problem of unemployment in communities. They can become a convenient platform for the post-war revival and technological re-equipment of the Ukrainian economy. One of these parks should be the “Coal-neutral eco-agro- hub Podillia-Horodok”- an industrial park in Khmelnytskyi. Several enterprises for the deep processing of agricultural raw materials are planned to be located there – a plant for the production of crude and purified alcohol from corn; an oil production plant and a waste processing plant [31]. It is MANAGEMENT 77 This work is distributed under the terms of the Creative Commons Attribution-ShareAlike 4.0 International License (https://creativecommons.org/licenses/by-sa/4.0/). Proceedings of the 2nd International Scientific and Practical Conference «Modern Knowledge: Research and Discoveries» (December 19-20, 2023). Vancouver, Canada No 183 predicted that about 70% of the products of the enterprises of this park will be exported. These and other examples show that the state adopts decisions to stimulate the diversification of agribusiness, the development of the processing industry based on it using the latest technological solutions. They must be able to compete with their products on world markets, creating better conditions for using Ukraine's resource potential. A summary of the decisions adopted by the state shows the following areas of support for the specified processes: – financial support for young companies planning to implement agricultural products processing projects on modern ecologically neutral technological lines; – preferential lending; – development of infrastructure for the placement of industrial productions in the processing industry; – simplification of customs procedures, which will expand opportunities for international exchange of goods with high added value; – lobbying the interests of domestic manufacturers on international markets, development of exhibition activities. At the same time, such decisions could be complemented by others. For example, stimulation of domestic demand for the products of domestic producers, investment support for the development of new food technologies, organizational support for integration processes (creation of clusters in the field of processing), etc. However, it is equally important for agricultural enterprises themselves to develop a business development strategy in the direction of its diversification. Moreover, using the latest technological and ecologically safe solutions. For this they have: 1. Monitor the market of state and regional programs and analyze the possibilities of attracting additional financial funds for the implementation of projects. For this, you can use the portal of the Ministry of Agrarian Policy and Food https://minagro.gov.ua/pidtrimka. 2. Monitor changes in environmental requirements, which are positioned as imperatives at the level of the state and EU countries for the production and processing of agricultural products, which increases the chances of obtaining additional MANAGEMENT 78 This work is distributed under the terms of the Creative Commons Attribution-ShareAlike 4.0 International License (https://creativecommons.org/licenses/by-sa/4.0/). Proceedings of the 2nd International Scientific and Practical Conference «Modern Knowledge: Research and Discoveries» (December 19-20, 2023). Vancouver, Canada No 183 funding. 3. Reduce (optimize) production and transaction costs by reorganizing existing business processes and designing new ones. 4. To enter the international market, certify products in accordance with export requirements to EU countries. 5. Expand opportunities and diversify methods of long- term storage of products. 6. Conduct an energy audit, based on the results of which develop a transition to the introduction of energy saving technologies, including using renewable energy sources. 7. Look for additional opportunities to participate in international cooperation strategies (for example, adapting the structure of cultivated areas to the cultivation of products that will be in demand in the EU markets). And one of the best options for increasing the market potential of agricultural enterprises is the integration of business entities - the creation of dynamic network structures that would cover the majority of processes related to the industrial processing of agricultural raw materials and their introduction to the market (including international) [10]. Thanks to this or a similar organizational structure, it is possible to optimize the resource needs of each network participant, to achieve complementarity in the use of the entire set of resources – and this creates conditions for the synergy effect, which is manifested in the improvement of indicators of economic dynamics. At the same time, it is important to build network business processes according to the “criteria of maximum benefit from the combination of unique capabilities of the participants of the value creation chain” [4]. Such optimization is achieved by the use of modern information technologies, which make it possible to operate with a large amount of data and form the information basis for making most strategic decisions. Actually, effective management of business processes of enterprises is impossible without proper information support, which “functionally unites the structural elements of the internal environment of the enterprise to coordinate actions to create innovations and implement innovative changes in existing business processes” [32]. All the more so if business processes are MANAGEMENT 79 This work is distributed under the terms of the Creative Commons Attribution-ShareAlike 4.0 International License (https://creativecommons.org/licenses/by-sa/4.0/). Proceedings of the 2nd International Scientific and Practical Conference «Modern Knowledge: Research and Discoveries» (December 19-20, 2023). Vancouver, Canada No 183 designed within the framework of a dynamic network partnership. By combining the efforts of participants, it is possible to reduce an investment risk (which is an important argument for strategic investors), achieve other investment advantages, as well as better service support for agribusiness - specialized services for soil cultivation, chemical plant protection, engineering support for setting up technological production, marketing support entering international markets. Relying on the tools of marketing management, it is possible to radically change the business philosophy, subordinating production parameters to the needs and demands of consumers and bringing new value propositions to the market [33]. It is possible to increase the effectiveness of the entire complex of structural changes in the agricultural sector - both at the micro-, mezo-, and macro levels. Conclusions. Maintaining the viability of the national economy is impossible without the functioning of those components that are able to create a socially useful product, save jobs and contribute to filling the country's budget. Combining the efforts of the government and entrepreneurs in the formation of a strategy for restructuring and economic recovery is the only correct solution for Ukraine to maintain its place in the world economic space. Such efforts on the part of the state should be filled with specific decisions regarding the directions of structural transformations in the economy and their institutional support, and on the part of entrepreneurs - justification of business development projects taking into account such strategic priorities. The potential of the agricultural sector of Ukraine is multifactorial and even in today's conditions it is possible to use it more effectively. Industrial processing of agricultural products can become one of the drivers of Ukraine's sustainable development. It is important that this development takes place on an innovative and technological basis that corresponds to the global “green transition” policy. This will enable Ukrainian enterprises to be competitive on world markets in a strategic perspective. However, due to the lack of own investment resources and the high cost of borrowed funds, it is difficult for entrepreneurs MANAGEMENT 80 This work is distributed under the terms of the Creative Commons Attribution-ShareAlike 4.0 International License (https://creativecommons.org/licenses/by-sa/4.0/). Proceedings of the 2nd International Scientific and Practical Conference «Modern Knowledge: Research and Discoveries» (December 19-20, 2023). Vancouver, Canada No 183 to ensure such technological changes. 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Naukovyi visnyk Мukachivskoho derzavnoho universytetu – Scientific Bulletin of Mukachevo State University. 2018. No. 2. P. 66-7. [27] Food products became the leaders in terms of loans under EKA insurance. URL: agroportal.ua/ news/finansy (published on 19.16.23). [28] More than UAH 550 million farmers received grant support this year for the development of gardens and greenhouses. Ministry of Agrarian Policy and Food of Ukraine. URL: minagro.gov.ua/news/ (published on November 29, 2023). [29] On making changes to the Tax Code of Ukraine to create favorable conditions for attracting large-scale investments in industrial production. Law No. 2330-IX dated 21.06.2022 URL: zakon.rada.gov.ua/laws/show/2330-20. [30] On amending Article 287 of the Customs Code of Ukraine regarding the creation of favorable conditions for the operation of industrial parks in Ukraine. Law No. 2331-IX dated 21.06.2022 URL: zakon.rada.gov.ua/laws/show/2331-20. [31] Construction of an industrial park begins in Khmelnytskyi. URL: uaprom.info/news/190703 (published on November 15, 2023)/ [32] Holovchuk O. V. Stadnyk V.V., (2017). Naukovo-metodychni pidkhody do upravlinnia innovatsiinoiu diialnistiu pidpryiemstva ta yoho MANAGEMENT 83 This work is distributed under the terms of the Creative Commons Attribution-ShareAlike 4.0 International License (https://creativecommons.org/licenses/by-sa/4.0/). Proceedings of the 2nd International Scientific and Practical Conference «Modern Knowledge: Research and Discoveries» (December 19-20, 2023). Vancouver, Canada No 183 informatsiinym zabezpechenniam [Scientific and methodological approaches to the management of innovative activities of the enterprise and its information support].Visnyk Khmelnytskoho natsionalnoho universytetu. Ekonomichni nauky – Herald of the Khmelnytskyi National University. Economic sciences, № 5, pp.177– 182. [33] Stadnyk V.V. Melnychuk O.P., Yokhna V.M. (2013). Marketynh- menedzhment innovatsiinoho rozvytku pidpryiemstva: monohrafiia [Marketing management of innovative enterprise development: monograph]. Khmelnytskyi: PP Honta A.S. 206 p. (in Ukrainian) CITATIONS (0) REFERENCES (19) ResearchGate has not been able to resolve any citations for this publication. THEORETICAL APPROACHES TO THE DIVERSIFICATION OF THE BUSINESS SUBJECT'S ACTIVITIES Article Full-text available * Dec 2022 * Serhii Nikitchenko Introduction. The economic expediency of the diversification of production activities is determined by its impact on the economic and financial state of the enterprise, since the result of any diversification should be the reduction of risk and the emergence of synergistic effects, especially in the field of finance, thanks to the possibility of free intra-company transfer of funds to the areas of activity that develop the most dynamically. The effect of diversification largely depends on the choice of directions (vertical integration, diversification based on existing types of activities, creation of conglomerates). Methods. Modern general scientific and special methods of economic research were used during the research, in particular: systematic approach, comparative, dialectical, abstract and logical methods. The results. It has been proven that the diversification of production activity will be expedient in the following cases: narrowing the possibilities of development of the current business; strengthening the competitive advantages of the enterprise and its products due to diversification; the opportunity to use the existing potential for organizing activities in other fields; the ability to reduce production costs; availability of financial and organizational resources to implement diversification. Discussion. In the post-war period, there will be a change in the priorities of production and economic activity of business entities, which is caused by a change in the direction of the country's economic development. This circumstance will lead to the improvement of the theoretical foundations of the diversification of business entities. Keywords: activity, business entity, diversification, economic feasibility, directions of diversification. View Show abstract Innovative Activity of Enterprises in the Agricultural Sector as the Efficiency Criterion of Its Production and Economic Potential Article Full-text available * Dec 2020 * Y. M. Sahachko * L. V. Teshеva Nowadays, an urgent issue for Ukrainian agricultural enterprises is the need for rational organization of their production and economic activities, because the current economic situation in Ukraine and in the world as a whole makes high demands on the quality of goods produced by agricultural enterprises. At the same time, the demand for various types of agricultural products and the costs borne by enterprises for their cultivation are constantly changing. The market environment of competitive relations is characterized by difficulties in finding opportunities and resources, ensuring the appropriate pace of development of an enterprise and setting the price level to determine the optimal production performance of the enterprise. A precondition for its effectiveness is the skillful organization of innovation in accordance with the economic situation in the region of the enterprise activity. The theoretical basis for the innovative activity of agricultural enterprises is considered, namely, its peculiarities and those of introducing innovations into production. Some problems of innovative development of the Ukrainian agricultural enterprises are also analyzed. Besides, the article identifies priority areas for innovative development. The SWOT-analysis method is considered as a method to determine the area for the development of an organization. The need for an optimal combination of production and innovation activities has been identified, which will ultimately allow not only to constantly improve the production process and its results, but also to be proactive, the latter being the main function of the organization management. It is determined that the search for innovative change areas should be systematic. It is only through purposeful and organized analysis of the opportunities provided by the business environment, and timely and reasonable involvement of cost-effective innovations for an organization, that its activities can be continually improved, and its prestige and competitiveness can be increased. View Show abstract Determinants of “green entrepreneurship” competitive strategies implementation in the agro-industrial sector of Ukraine Article Full-text available * Jan 2021 * Valentyna STADNYK * Galyna Krasovska * Galyna Pchelianska * Yuliia Holovchuk “Green entrepreneurship” practice dissemination is one of the “sustainable development” concept strategic goals. In agro-industrial sector this practice involves the business processes environmental optimization, which requires significant investments for technological changes and limits the competitive strategies variability for small and medium enterprises. Ukraine’s agricultural sector “green entrepreneurship” projects investing analysis confirmed that they mainly involve big business. This updates the problem of “green entrepreneurship” competitiveness increasing. This article purpose is to substantiate vectors and modalities for participatory development of agro-industrial business network for realization the competitive business strategies in the “green business” field. It has been emphasized that the membership and the business network structure should provide business processes adaptive and proactive flexibility. It has been identified this flexibility determinants in the structure of the participants innovative potential, which can accumulate specific resources and competencies for the “green” entrepreneurship competitiveness. The scheme of formation the specific resources owners’ strategic partnership for the competitive business strategies realization has been developed. It has been indicated that in the agricultural sector this allows to increase the joint innovation potential for cleaner production in all parts of the value chain. It has been recommended to coordinate the strategic priorities of the participants on the methodological basis of the game theory, which will contribute to the partnership stability and effectiveness. View Show abstract INNOVATIONS IN THE AGRICULTURAL BUSINESS: PROBLEMS AND PROSPECTS IN UKRAINE Article Full-text available * Mar 2020 * Tetiana Mulyk * Yaroslavna Mulyk The main purpose of the research is to determine the role of innovation of agrarian enterprises for their effective management, as well as analysis of the internal and external environment of innovation activity of agrarian enterprises, their threats and opportunities with the help of SWOT-analysis. The systematization of literary sources and approaches to innovative activity of agrarian enterprises made it possible to generalize that the fundamental questions related to the interpretation of the essence of innovations, innovation activity and innovative processes of enterprises, with the specifics of their manifestation in agrarian enterprises, were investigated by domestic and foreign scientists as well as regulated by normative- legal acts. The urgency of solving this scientific problem lies in the fact that the determining factor of the efficiency of economic activity of the enterprise is their innovative development, which is based on the introduction and implementation of innovations, which determine the improvement of its activities, affect the strengthening of its market positions and produce suitable conditions for its development. One of the promising areas for innovations is the agrarian sector. Introduction of innovations in practice in all spheres of agrarian enterprises contributes to: the increase of labor productivity, decrease of expenses and cost of production, saving of various kinds of resources, increase of volumes and improvement of efficiency of agrarian production. The article analyzes the main directions of IT innovations in agrarian business, innovative solutions (products) and opportunities. It is determined, that any agrarian enterprise has its own peculiarities and specificity and requires individual innovative solutions. The management of the company often can easily identify, what is needed to increase the efficiency. And sometimes the services of analysts and IT consultants, who are professionals of their business, and can unmistakably determine the individual needs and decisions, can be useful. The peculiarities of formation and development of innovation process in agriculture were analyzed. A SWOT analysis of innovative activity of agrarian enterprises was conducted, which allowed to identify their strengths (weaknesses) sides, opportunities and threats. The results of the research can be useful for scientists, specialists and heads of agrarian enterprises, teachers of higher educational establishments, postgraduates, students and all those, who are interested in problems of development and efficiency of innovation activity. View Show abstract Business systems and business processes of modern enterprises: the interconnection and interdependence of structures and efficiency Article Full-text available * Jan 2018 * V. Stadnyk * P. Izhevskyi View Ahrarnyi sektor Ukrainy: potochnyi stan ta yoho vidnovlennia v umovakh transformatsiinykh zmin. [The agrarian sector of Ukraine: the current state and its restoration in the conditions of transformational changes * M I Dyachenko * V O Zhmudenko Laws of wartime: what decisions were made by the Council in four months * O Salizhenko Strategic management of the potential development of an agrarian enterprise in conditions of adaptive changes. Scientific Bulletin of the Uzhhorod National University: series: International Economic Relations and World Economy * S V Pisarenko * M V Ivanko * M Hrytsaenko The Granary of Europe”: the losses of the domestic agricultural industry this year are estimated in billions * L Huk * Zhytnytsia Yevropy Ekonomichna diahnostyka rozvytku ahrarnoi sfery: voienni realii ta zavdannia upravlinnia [Economic diagnosis of the development of the agrarian sphere: military realities and management tasks * E O Boyko * O S Boyko Show more RECOMMENDED PUBLICATIONS Discover more Article RESOURCE SYNERGY OF NETWORK COOPERATION OF ENTREPRENEURIAL STRUCTURES: FACTORS AND CONDITIONS OF ACH... March 2022 · Herald of Khmelnytskyi National University Economic sciences * Valentyna STADNYK * Lilija HRYZOVSKA * Maksym GADZHUK The article highlights the problematic aspects of the functioning of business structures of Ukraine in the war and the future recovery period, It is emphasized that maintaining their viability requires new models of economic cooperation. They must meet the paradigm of the knowledge economy and ensure the achievement of sustainable development goals. In their organizational basis, new business ... [Show full abstract] models should be based on the potential of human interaction in the creation and use of new knowledge that can be embodied in competitive products and services in the global market. It is argued that such models of economic cooperation are network business partnerships, which are formed by integrating business structures along the chains of consumer value. The advantages of network business partnership in two spheres are systematized: direct resource supply and formation of organizational conditions for achieving resource synergy. Emphasis is placed on changing the dispositions of participants within the organizational shell of the business network – an individual participant is transformed from a resource (a means by which the desired result is achieved in the chain of consumer value) to a business development partner. Understanding by network members of their role in ensuring the effectiveness of the created business model determines their organizational behavior, makes it competitive. This contributes to the accumulation of an important intangible resource to achieve resource synergy – network organizational capital. The conditions under which the business network will be stable and efficient are indicated. They belong to the motivational function of management and provide an assessment of the valence of the motives of the participants. It is necessary to ensure the effectiveness of cooperation, in which the motivation of participants to develop overall competitiveness will outweigh the motivation of separate management. Read more Article MARKETING DOMINANT IN MODELS OF ENTREPRENEURIAL STRUCTURES INNOVATIVE POTENTIAL DEVELOPMENT FOR COMP... June 2021 · MODELING THE DEVELOPMENT OF THE ECONOMIC SYSTEMS * Valentyna STADNYK * Yuliia Holovchuk * GALINA KRASOVSKA The economic entities competitiveness is determined by their ability to create consumer values. Consumer markets dynamic requires mobility in the competitive strategic choice that means it requires those innovative potential components predominant development that provide enterprises with such mobility. The paper aims to form theoretical bases of business structures innovative potential ... [Show full abstract] development to improve their dynamic characteristics and increase the ability to implement competitive business strategies. Innovations theory, competitive advantages resource theory, concepts of strategic management, network structures and marketing relationship have been chosen as the research theoretical basis. Based on the machine-building products dynamic and export structure analysis and the Ukraine industrial enterprises innovative activity results, the assumption that their innovative potential do not correspond to the competitive strategies objectives has been suggested. It has been substantiated that the innovative potential development management should be considered in terms of improving the enterprises adaptive and proactive flexibility and that is provided by the marketing function. Based on the above the model of enterprise competitive business strategy selection considering the possibility of building up innovative capacities through the strategic partnerships development has been designed. The motivational environment impact on the partnerships value has been formalized and the task of marketing relationship in this process have been identified. The research results can be useful for the dynamic characteristics and economic systems competitiveness development. Read more Article Full-text available УКРАЇНСЬКИЙ ЕКСПОРТ: ПОТЕНЦІАЛ «ЗЕРНОВИХ КОРИДОРІВ» February 2023 · Foreign trade economics finance law * Євгеній БЄЛАШОВ Вступ. Блокування силами рф морських портів України суттєво обмежило здійснення експорту зернових культур на світові ринки. Це стало загрозою втрати значної частки врожаю 2021 р. через неможливість його вчасного вивезення. Для вирішення цієї проблеми створено «зернові коридори». Проблема. Попри значний прогрес у забезпеченні експорту зернових, ефективність їх вивезення потребує покращення. Крім ... [Show full abstract] того, функціонування цих коридорів знаходиться під загрозою через можливість припинення їх дії. Метою статті є розробка заходів щодо оптимізації роботи «зернових коридорів», усунення вузьких місць і забезпечення продовження функціонування цих каналів експорту зерна з України. Методи. У ході дослідження використано емпіричні методи, статистичну оцінку, синтез та порівняльний аналіз. Результати. Досліджено стан експорту зернових культур з України та роль морських портів у ньому. Продемонстровано важливість «зернових коридорів» для здійснення вивезення врожаю 2021–2023 рр. та забезпечення продовольчої безпеки світу. Окреслено проблеми, що заважають інтенсифікації експорту зернових і надано рекомендації щодо його нарощування. Висновки. Морські порти України відіграють надзвичайно важливу роль у забезпеченні експорту зернових культур з України. Систематичне продовження дії «зернових коридорів» та повноцінна реалізація їх потенціалу є критичними для забезпечення вчасного вивезення врожаю 2021–2023 рр. та продовольчої безпеки у світі. Майбутні дослідження цієї тематики доцільно присвятити підвищенню економічності перевезень у рамках «зернових коридорів» та оптимізації процесу догляду суден інспекційними групами. View full-text Conference Paper TRENDS AND STATUS OF AGRIBUSINESS IN ANIMAL HUSBANDRY OF THE RUSSIAN FEDERATION February 2019 * Alfiya Kuznetsova * Marsel Avzalov * Denis Gogbunov * Evgenii Stovba Read more Last Updated: 22 Oct 2024 Discover the world's research Join ResearchGate to find the people and research you need to help your work. Join for free ResearchGate iOS App Get it from the App Store now. 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