Modern Challenges of Agrarian Business in Ukraine on the Way to Europe

Abstract

It is established that the Ukrainian agrarian sector in recent years suffered quite serious reformational impacts on the institutional environment of the functioning of economic actors, in particular the influence of regulators on the transformation of agricultural development. It is substantiated that under institutional transformations it is appropriate to understand the changes that occur as part of the creation of new rules of conduct of participants, containing a specific mechanism for ensuring compliance with these rules, as well as improving organizational and economic regulators within the existing set of rules for all participants It is determined that the institutional system is a structured set of interrelated informal rules that determine, on the one hand, a system of incentives for increasing the efficiency of interaction between subjects of the agrarian economy, and, on the other hand, restricts the activities of economic agents, which create a certain framework for implementation their target functions in accordance with the law and public interests.

The Russia-Ukraine Conflict: Its Implications for the Global Food Supply Chains

“…The commercial relationships for the import of commodities between the EU and Ukraine are delivered through duty-free quotas, which provide favorable import outcomes for Ukraine and the EU. The EU has a dependency on commodities and raw materials in the food processing sector [ 36 ]. The current uncertain situation about the progression of the armed conflict poses a threat to disrupting agricultural supply chains between Ukraine and European countries [ 37 ].…”

“…As Ukraine's wheat exportation remain stagnated, the export from major global producers (Australia, India, and Canada) have increased [37]. Within the EU, the supply chains that are partly controlled and determined by Ukrainian agricultural imports include the secondary food processing sector (especially baking, brewing, and vegetable oil industries) which have direct impacts on retail and food service sectors [36]. As the Ukrainian crisis continues, the risk of retail disruption in these food chains increases and leads to a potential downstream shortage of products for industries, grocery and retail stores, and the food service sector.…”

The Role of Households in Beef Production in Ukraine

“…• Households engaged in agricultural activity both for self-provision of food products and for the purpose of production of commodity agricultural products; this category of producers is also referred to as individual entrepreneurs who carry out their activities in the field of agriculture [17]. There are more than 200 holdings in the agricultural sector of Ukrainian economy, 100 of which have from 15 to 650 thousand hectares of land use.…”

Adaptation Processes of the Agrarian Sector for Realization of the Exisiting Potential

“…The agrarian sector of Ukraine with its basic component of agriculture is increasingly becoming the system-forming factor in the national economy. It creates the factors for maintaining the sovereignty of the state: food and, within certain limits, the economic and ecological, energy security of the state, ensures the development of technologically related branches of the national economy, forms the market for food products (Putsenteilo, Klapkiv and Kostetskyi, 2018).…”

“…The development of agrarian production from a theoretical and methodological point of view is a complex process, agreed, firstly, with the decisive trends in the development of the national economy as a macro-economy, and secondly, with the requirements of adherence to the principles of a systematic approach to the formation of preconditions and factors of development, thirdly, with the requirements of the innovation and investment model of development of the industry, and fourthly, with the needs of sustainable development of rural areas, which provide for agro-industrial production, fifth, with the requirements of national security, including food safety standards, sixth, with the requirements of standardizing production and management systems based on current international standards and norms (Putsenteilo, Klapkiv and Kostetskyi, 2018).…”