Modern Challenges of Ukrainian Agro-food Development

Authors

  • OV Shubravska Украина

Abstract

Agriculture is traditionally an important component of national economic complex [1]. Trends and prospects of the branch are determined by the general state of the national economy. And it largely depends on the main indicators of agricultural activities. The main challenges and threats in the process of development and growth of agro-food production are influenced by factors as planetary scale, as the general economic situation in Ukraine and on the world food market and in the agro-food complex of the country [2]. In a global context presently the strongest challenges are connected with the change of climate, intensifying of ecological and demographic problems, deficit of water, meal, depletion of natural resources etc. For the Ukrainian agro-food production the number of these challenges also acquires considerable weight: foremost, the role of climatic factor becomes more perceptible in providing of stability of deliveries and consumption of agricultural products. In turn, this further heightens the problems of land degradation and increased water scarcity for the agricultural economy. One of important challenges, also for agro-food development, is the increasing of global competition (economic transnationalization). Transnationalization affects on agriculture development not only straightly (through activity of dynamic participants of grain and oil markets, for example such, as TNC “Louis Dreyfus Company”, “Bunge”, “Cargill”, ADM, “Serna” and other) but also indirectly. Namely: through the formation of regional specialization of raw materials for domestic processers, as well as import demand from domestic producers in the market of material and technical means. Thus, the share of German BASF in 2015 on such market was estimated at 15-20%, while the Swiss Syngenta AG plans to increase its share to 27% by 2018. In the whole world, the interest of large international capital in the sphere of agricultural and food production has been increasing for a long time and, taking into account the global food supply trends, will only grow in the future. Taking into account that representatives of selected countries (to which Ukraine does not belong) participate in such global competition, the scenario of consolidation of raw specialization of export and import dependence in deliveries of a number of important material and technical resources of the industry is fully realized in the domestic agrarian sphere. The most obvious long-term consequences of this are the final degradation of land resources, a significant deterioration in the ecology of rural areas, a decrease in the price competitiveness of domestic agro-food products, a reduction in the corresponding industries, etc., which together can negatively affect the national food security and independence. Taking into account the general weakness of the Ukrainian economy and, accordingly, the position of our country in defending its own interests in attracting foreign investment, the real positive effect of the transnationalization of the agricultural sector seems incommensurable with the scale of the accompanying negative effects.

References

1. Paskhaver B.I., Moldavan L.V., Shubravska O.V. Osnovni problemy rozvytku silskogospodarskogo vyrobnyctva [Main Problems of Agricultural Development] / Economika APK. – № 9. – 2012. – P. 3-10.

2. Shubravska O.V. Agroprodovolchyi sektor v umovah kryzy: osnovni tendencii ta vyklyki rozvytku [The Agro-food Sector under the Crisis: Main Tendencies and Development Challenges] / Economy and Forcasting. –№3 –2009. – P. 99-110.

3. FAO Food Price Index [Електронний ресурс]. – Available at: http://www.fao.org/worldfoodsituation/foodpricesindex/en/.

Published

2017-04-01

How to Cite

Shubravska, O. (2017). Modern Challenges of Ukrainian Agro-food Development. Pridneprovskiy Scientific Bulletin, 1(513). Retrieved from http://www.rusnauka.com/index.php/rusnauka/article/view/14588