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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.



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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.

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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/).
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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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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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


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to ensure such technological changes. And the solution to
this problem for Ukraine, which plans to significantly change
the structure of the export potential in the direction of
industrial production during the post-war recovery of the
economy, needs an appropriate theoretical and methodological
justification. Appropriate recommendations will be developed
in future studies.

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and Discoveries»

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«Modern Knowledge: Research
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(December 19-20, 2023).
Vancouver, Canada

No
183
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Proceedings of the 2nd International
Scientific and Practical Conference
«Modern Knowledge: Research
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(December 19-20, 2023).
Vancouver, Canada

No
183
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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



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