Problems and Prospects of Food Industry Development and Its Investment Attractiveness in Ukraine

Abstract

The development of the food industry in Ukraine is studied and it is noted that its material and resource provision, itseffective development directly depend on the volume, structure and direction of investment resources, innovation and finan-cial stability.It is noted that the excess of foreign direct investment over portfolio foreign investment in 2020, as a record low, can be attributed to active political action in Ukraine, the continuation of hostilities, as well as the introduction of quarantine re-strictions. The structure of portfolio foreign investment has an imbalance that does not lead to industrial development, but leads to an increase in domestic and external debt, as a significant part of investment is represented by debt instruments.The factors that influence the investment climate for the further development of the food industry are listed: the level of inflation; taxation system; financial stability of enterprises; political stability; judicial system and level of corruption; control over the use of investments; energy prices. Strategic and tactical goals for further development of the industry, means and tools to achieve the goal have been identified. The organizational and economic mechanism of development of the food indus-try and creation of cooperatives at the expense of venture financing at the conclusion of venture agreements is offered. The creation of regional cooperatives will help the domestic food industry to reach a new level of development and raise the level of the national economy.It was concluded that it is necessary to stabilize the political and economic situation in the country, to eliminatecor-ruption in the administration of investments; the state should develop and implement reforms that would stimulate investment in both the agricultural sector and the processing industry; the development of the industry should be comprehensive, world trends, domestic and external demand for certain types of innovation should be taken into account.