Kazandzhi A.V.
Odessa State Agrarian
University
THE ROLE OF OIL AND FAT SUBCOMPLEX
IN THE ECONOMY OF UKRAINE
In the
conditions of economic instability and restructuring the national economy of
Ukraine the study of industries of national economic importance is urgent.
Among which the important place is occupied by oil and fat sub-complex.
Oil and fat sub-complex
is an integral part of agro-industrial complex and food industry of Ukraine.
The complex structure of the sub-complex, which covers the production processes
in one cycle beginning from the cultivation of oilseeds and ending the
realization of oil and fat products, identifies numerous inter-branch links,
significantly affecting the socio-economic development of the country as a whole.
Industry is directly involved in ensuring food security both at the national
level and on a global scale.
Functioning of
sub-complex is associated primarily with the peculiarities of the industry, as socio-economic
and natural biological system, whose main aim is the production of fat and oil
products to supply the country with oil products.
Demonstrating
sustainable development in recent years oil and fat sub-complex of Ukraine is a
reliable foundation for the strengthening of food security of the country and
the basis of the extension of its export potential. Among the factors
contributing to the active development of the sub-complex it should be noted:
favorable natural and climatic conditions for oilseeds cultivation, the growth
of the world population, reorientation in dietary patterns of the population to
the oils and fats of plant origin, the development of bioenergy that causes a
sustainable demand for energy crops.
The special role
of the sub-complex in the economy is stipulated by social, economic, and
interdisciplinary aspects.
In the social
aspect the importance of the sub-complex is determined by the production of
oils and fats to meet the physiological needs of the population. In addition a
production and processing of oil-bearing seed are the guarantee of population
employment.
Fat and oil
products have a ponderable value in the vital function of man as one of basic constituents
in a structure of diet together with proteins and carbohydrates. The role of
fats is determined by their high calorie content and participating in the
processes of metabolism. Fats provide on the average 33% of day's energy value
of ration, fats of phytogenous must occupy 30% in their structure, the basic sources
of that are oils − 99,9 %.
Oil of sunflower
seed is one of the main foods that has unique qualitative properties (fatty
acids – stearic, linoleic, linolenic, and others, vitamins A, D, E). In
addition, the production and processing of oilseeds is a guarantee of
employment.
For
socio-economic development of Ukraine's oil and fat production is of great
importance, since oil and margarine is included in the composition of the food
consumer basket, which serve the basis of the minimum consumer budget. As
known, a living standard is a base state social standard that is used for estimation
and guaranteeing of certain living standard of country population.
An economic aspect is
expressed in that a production and processing of oil-bearing seed are the
source of currency receivables for agrarian and processing enterprises, and
realization of oil-bearing seed and foods of its processing to the foreign
market assists realization of country export potential.
As a result of
military operations in eastern Ukraine, the state lost some acreage including
ones for oilseeds sowing and some powerful oil producing companies. However,
despite the difficult economic and political situation in the country oil and
fat sub-complex has positive trends.
Nationwide
production volumes of sunflower oil in 2016 rose to 5.4 million tons and
exports – 4.8 million tons. The export orientation of the industry provides
significant foreign exchange earnings to the state budget. So, the volume of
currency proceeds from the sale of oil products to the external market in 2016
has grown to $ 6.2 billion [1]. Since 2011, Ukraine is the absolute world leader in
the production and export of sunflower oil. In 2016, the share of Ukraine in
world production of sunflower oil accounted for 23% and exports – 62% [2].
The
interdisciplinary aspect is revealed in the fact that the products of oilseed
processing are raw materials for other sectors of the economy, that determines
their development and contributes to the formation and redistribution of labor
resources.
The main product
of oil seeds processing– oil is the main raw material for many industries,
especially food and chemical. A by-product of oil production, in particular the
cake and meal are valuable feed for farm animals.
Use of oil in
bioenergetics as raw material for the production of bio-fuels attributes an
oil-bearing production to industries forming bio-energetic safety, as for Ukraine
so to the world on the whole, as the industry is export orientated.
An oily-fatty
sub-complex in Ukraine can be reckoned to especially important component part
of functioning of country economy that is confirmed by its influence on
securing food and economic safety.
References:
1. Official
web-site of association of "Óêðîë³ÿïðîì" [Electronic resource]. – It
is access Mode: http://www.ukroilprom.org.ua.
2. Official
web-site of Ministry of agriculture of the USA (United States Department of Agriculture,
USDA). [Electronic resource]. – It is access Mode http://www.usda.gov/wps/portal/usda/usdahome.