Methodological Approaches to the Formation of an Agricultural Production Diversification Strategy in Ukraine

Abstract

Introduction. In the modern conditions of management in the agrarian sphere, the search for approaches, methods and methods of accelerating the development of the agrarian economy based on the use of the advantages of diversification has intensified. It is obvious that the orientation towards the use of the effects of diversification of production activities in agricultural production requires the establishment of systematic monitoring of the environmental factors of their functioning and the vector of their influence on the growing dynamics of production volumes and the stability of corporate structures. Methods. General scientific and special methods of learning phenomena and processes in the sphere of economic activity of enterprises were used to achieve the set goal, in particular: systemic approach − when studying the connections between phenomena and processes in the system of ensuring diversified development; comparative − for evaluating the efficiency of activity and comparing the levels of diversification of production of agricultural products; calculation-constructive – when substantiating directions of diversification of production; the method of asset portfolio analysis, simulation modelling − to substantiate the company's production program; dialectical, abstract and logical − when making theoretical generalizations, formulating conclusions. Results. For the formation of a diversification strategy, it is advisable to take into account the influence of the constituent factors of the external and internal environment of the functioning of agricultural enterprises, the level of their use of production potential and the economic risks that accompany their activity. When identifying the factors of the external and internal environment of the functioning of agricultural enterprises, we optimized their composition and proposed a system of indicators, which is combined into two groups: aggregate potential and economic risk. With the use of economic and mathematical methods, it was determined that the first cluster included administrative districts of the Kyiv region, where the economic conditions for the functioning of economic entities are the most attractive for the management of multidisciplinary agricultural enterprises; the second cluster is characterized by an average level of attractiveness; the third cluster is formed from the least attractive or risky areas for agricultural production and development of diversification. Discussion. Ukraine's membership in the EU will require new approaches to the assessment of specialized regions of Ukraine, using a cluster approach, which will ensure a high level of return on investments, including in the form of state and regional support, which will significantly increase the level of competitiveness of domestic producers and processors of agricultural products. All this will require our further research. Keywords: strategy, diversification, agricultural production, risk, production activity.

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“…), which are subject to regulatory mechanisms and strict state control over their distribution and use, it is predicted that the directions of intersectoral adaptation of farms, including in terms of agritourism development opportunities, will correlate with changes in legislation in the field of land and natural resources (Water Code of Ukraine, 2023; Land Code of Ukraine, 2024). Thus, analysing the results of research by S. Nikitchenko et al (2022), it can be concluded that the intersectoral adaptation of Ukrainian farms in the context of war through the introduction of rural green tourism practices can be a significant support for the farm business as a whole.…”