Voznyuk O. О., Lobanova V. V., Mikhaylenko O. G.

Oles Honchar Dnipropetrovsk National University, Ukraine

CURRENT STATE AND PROSPECTS OF DEVELOPMENT OF EXPORT-ORIENTED AGRICULTURE IN UKRAINE

Agriculture is a vital sector of the economy in each state because it affects the interests of almost every person. Today more than 80 % of the consumption is formed by agricultural products [1]. That is why agricultural production is the main condition of people well-being. Agriculture of Ukraine provides 9.2 % of gross added value [2, p. 35], in this industry 3492,4 thousand people are employed [2, p. 29], the area of agricultural lands area is equal to 41536,3 thousand hectares [3]. Each 1 UAH of products which are produced in agriculture allows to receive more than 12 UAH of production in other sectors of economy [4, с. 4]. Rural area is a recreation place of inhabitants and rural population is guardian of national customs and traditions.

Ukraine has significant opportunities for export of agricultural and food products, production of which essentially exceeds the capacity of the domestic consumer market.

Recently Ukraine’s foreign trade of agricultural products has significantly quickened. In 2005 exports amounted 4,304 billion dollars, and imports amounted 2,683 billion dollars, in 2012 these figures increased more than twice and they accordantly were 17,880 billion dollars and 7,520 billion dollars [2, p. 69–70]. So export-import balance increased from 1,621 billion dollars to 10,36 billion dollars. Agriculture is the only sphere of economy that has had only positive balance of foreign trade during the period of independence[4, с. 107].

The main exports agricultural products in Ukraine are cereals, oilseeds and vegetable oil. These products will continue to dominate in the structure of Ukrainian exports, and main markets of its sales are Russia, CIS, Middle East and North Africa [4, с. 107].

At the same time, the export potential of agriculture in Ukraine is not used in full. The main factors that hinder the disclosure of Ukrainian export potential of agricultural production are:

– incomplete integration of domestic agricultural production in the world market against the backdrop of political and economic trends of globalization;

– an unstable government policy of export-import regulations;

– absence of balanced encouraging policies and support of foreign trade activity of agricultural producers;

– limited capacity for transporting and port shipments of key export items, firstly – grain.

In order to overcome the above-mentioned negative factors Ministry of Agrarian Policy and Food of Ukraine in 2012, developed a project strategy of the agricultural sector (till 2020). This strategy is aimed at creating an efficient, resource-saving, environmentally-safe, socially oriented, knowledge-based sector of economy, which is able to meet the needs of the domestic market and will have a leading position in the global market for agricultural products and foodstuffs. It provides a systematic solution of the key problems of the agricultural sector of Ukraine [5, p. 3].

The aim of this strategy is to create conditions for effective development of the agricultural sector in strategic priority areas, which provide unity of economic, social and environmental interests of the public, improve the efficiency and competitiveness of agricultural producers, increase the production of agricultural products and improve the quality of life in Ukraine. The main strategic objectives of agricultural development based on this aim are:

1. The increase in exports of agricultural products and processed products – the growth of exports of agricultural products in 2015 to 17,5 billion dollars, and in 2020 – to 34 billion dollars, bringing the volume of grain exports to 33,5 million tons, meat – to 1,3 million tons, milk – to 4,1 million tons.

2. The increase of imported production (import substitution) – the growth of the positive balance of foreign trade in agricultural and food products in 2015 – to 10 billion dollars, and in 2020 – to 23 billion dollars. [5, p. 108–109].

Thus, agriculture plays a vital role as a catalyst for the development of a market economy. In the near term, Ukraine’s agriculture can become a major source of exports. This is supported by and large scale agricultural land use, and fertile land. In combination with the hard work of the Ukrainian people it brings Ukraine one of the leading places for agricultural potential. In the future, Ukraine can not just fully meet its own needs in agricultural production, but also significantly increase its export potential. So, agriculture can and should be the industry that will play a crucial role in Ukraine’s entry into the global market.

The list of references:

1. Андрійчук В. Г. Економіка аграрних підприємств: підручник [Electronic resource] / В. Г. Андрійчук. – 2-ге вид., доп. і перероб. – К.: КНЕУ, 2002. – 624 с. – Mode of access: http://www.buklib.net/books/22255/

2. Державна служба статистики України. Сільське господарство України: статистичний збірник за 2012 р. [Electronic resource]. – К., 2013. – 392 с. – Mode of access:http://www.zerno.org.ua/download/file/96-silske-hospodarstvo-ukrainy-za-2012-rik-statystychnyi-zbirnyk

3. Офіційний сайт Державної служби статистики України [Electronic resource]. – Mode of access: http://www.ukrstat.gov.ua/

4. Стратегічні напрями розвитку сільського господарства України на період до 2020 року [Electronic resource]  /  за ред. Ю. О. Лупенка, В. Я. Месель-Веселяка. – К.: ННЦ «ІАЕ», 2012. – 182 с. –Mode of access: http://www.agroua.net/docs/strateg.pdf

5. Міністерство аграрної політики та продовольства України. Стратегія розвитку аграрного сектору економіку (на період до 2020 року) з внесеними змінами і доповненням НААН [Electronic resource]. – К., 2012. – 18 с. – Mode of access: http://www.uaan.gov.ua/ sites/default/files/strateg_do_2020r.pdf