Strategies for sustainable development of the agricultural entreprises of Ukraine: the role of integration processes

Berkar Yuliia
Master of the Department of Business Economics and Business Organization Odessa National University of Economics, Odessa, Ukraine, E-mail:yuliaberkar@gmail.com, ORCID ID: https://orcid.org/0009-0001-9965-4359

Litvinov Oleksandr
Doctor of Economics, Professor, Professor of the Department of enterprise economics and organization of entrepreneurial activity, vice-rector for scientific work Odessa National University of Economics, Odessa, Ukraine, E-mail:Litvinov_a213@ukr.net, ORCID ID: https://orcid.org/0000-0002-1424-6904

Cite this article:

Berkar Y., Litvinov O., (2024) Strategies for sustainable development of the agricultural entreprises of Ukraine: the role of integration processes. Ed.: V.V. Kovalenko (ed.-in-ch.) and others [Strategii stalogo rozvytku agrarnyh pidpryjemstv Ukrainy: rol integracijnyh procesiv; za red.: V.V. Kovalenko (gol. red.)], Scientific Bulletin of the Odesa National Economic University (ISSN 2313-4569), Odesa National Economics University, Odesa, No. 9 (322), pp. 71-80.

Abstract

The article examines the process of integration of small agricultural enterprises in Ukraine into large agricultural holdings. The purpose of the study is a comprehensive analysis socio-economic prerequisites, mechanisms and consequences of the integration of small agricultural enterprises into agricultural holdings in Ukraine, as well as determining possible ways to solve problems related to this process. A thorough analysis of the prerequisites, forms, mechanisms and consequences of this process is carried out. It has been established that the integration of small agricultural enterprises into agricultural holdings is a complex phenomenon caused by various interrelated factors. The main prerequisites for integration include the desire to increase production volumes and profits, reduce costs, use the achievements of NTP, lack of own financial resources for modernization, increased competition and product quality requirements. The main forms of integration are systematized: mergers and acquisitions, creation of joint ventures, contractual integration, cooperation, franchising, leasing, agro-industrial clusters, public-private partnership. The economic and social consequences of the integration of small agricultural enterprises into agricultural holdings are assessed. Positive economic results include increased production efficiency, access to finance and sales markets, and technology modernization. However, there are risks of market monopolization, reduced competitiveness and bankruptcy of small enterprises. Both positive (new jobs for qualified personnel, development of infrastructure) and negative (reduction of total employment, decline of remote villages) consequences were found in the social sphere. It was concluded that finding a balance between economic efficiency and social justice is a key task for ensuring the sustainable development of the agricultural sector of Ukraine. Attention is focused on the importance of international experience in regulating integration processes in agriculture and the possibility of its adaptation to the realities of Ukraine. The need for a comprehensive state policy that would take into account the interests of all parties and promote the harmonious development of both large and small agricultural producers was emphasized. It is also indicated that state regulation is critically important for ensuring the sustainable development of the agricultural sector, as it can guarantee the protection of workers' rights, support the development of rural communities, and stimulate the cooperation of small agricultural producers.

Keywords

agriculture, agribusiness, integration, prerequisites for integration, mechanisms of integration, economic consequences of integration, social consequences of integration.

JEL classification:Q120; Q130; DOI: https://doi.org/10.32680/2409-9260-2024-9-322-71-80

UD classification:334.012.6:631.151.6

References

1. Kuksa, V. M., Vlasenko, O. I., & Boiko, A. O. (2024). Integration processes and their significance for the development of small forms of entrepreneurship in agrarian business. Ekonomichnyi prostir, 189, 191-195.https://doi.org/10.32782/2224-6282/189-35 Retrieved from https://prostir.pdaba.dp.ua/index.php/journal/article/view/1410 (accessed 26 July 2024). [In Ukrainian].
2. Mamchur, V. (2021). Trends and prospects of agricultural entrepreneurship development in Ukraine. Sotsialnoekonomichni problemy i derzhava, 24, 1, 45-53. https://doi.org/10.33108/sepd2021.01.045 Retrieved from https://elartu.tntu.edu.ua/handle/lib/35900 (accessed 26 July 2024). [In Ukrainian].
3. Khudolei, V. (2022). The influence of acroholdings on the development of the village in the conditions of decentralization of the economy. Modeling the development of the economic systems, 3, 187–197. https://doi.org/10.31891/mdes/2022-5-27 Retrieved from https://mdes.khmnu.edu.ua/index.php/mdes/article/view/119 (accessed 26 July 2024). [In Ukrainian].
4. Nemish, D. V., Humeniuk, M. M., Balaniuk, I. F. & Shelenko D. I. (2021). Prospects for the development of small agricultural enterprises in the region in the context of the formation of the land market. Innovatsiina ekonomika, 5-6, 80-86. https://doi.org/10.37332/2309-1533.2023.1.3 Retrieved from http://inneco.org/index.php/innecoua/article/view/1009 (accessed 26 July 2024). [In Ukrainian].
5. IPS LIHA:ZAKON – systema poshuku, analizu ta monitorynhu normatyvno-pravovoi bazy. [IPS LIGA:LAW is a system for searching, analyzing and monitoring the regulatory and legal framework]. LIGA:ZAKON. Retrieved from https://ips.ligazakon.net/document/TS001746 (accessed 26 July 2024). [In Ukrainian].
6. Intehratsiia. Entsyklopediia Suchasnoi Ukrainy. [Integration. Encyclopedia of Modern Ukraine]. Retrieved from https://esu.com.ua/article-12384 (accessed 26 July 2024). [In Ukrainian].
7. Berkar, Y.V., Litvinov, O.S. (2024). The importance of integration processes for the agro-industrial complex of Ukraine. Actual scientific ideas of the development of the latest technologies: XVIII Mizhnar. naukovo-prakt. konf. m.Lisbon, May 6-8, 2024y, 41-43. Retrieved from http://surl.li/nygknk. (accessed 26 July 2024). [In Ukrainian].
8. Kutsyk, P., Semiv, S., Kutsyk, V., Poliakova, Yu. & Shevchyk B. (2023). The state, problems and priorities of the development of agricultural cooperation in Ukraine in the context of modern challenges. Financial and Credit Activity Problems of Theory and Practice, 1(48), 282–297. DOI: https://doi.org/10.55643/fcaptp.1.48.2023.3956 Retrieved from https://fkd.net.ua/index.php/fkd/article/view/3956 (accessed 26 July 2024).
9. Spaskyi, H. V., Shvets, A. A. (2019). Integration processes in the agricultural cooperation of Ukraine. Kooperatyvne chytannia, 58-62. Retrieved from http://ir.polissiauniver.edu.ua/bitstream/123456789/9818/1/ Cooperative_2019_58-62.pdf (accessed 26 July 2024). [In Ukrainian].
10. Karnaushenko, A. S., Hrebeniuk, N. V. & Petrenko, V. S. (2022). Agro-industrial integration is an important factor in the investment attractiveness of agriculture. Visnyk Khersonskoho natsionalnoho tekhnichnoho universytetu, 3 (82), 184-189. https://doi.org/10.35546/kntu2078-4481.2022.3.26 Retrieved from https://cyberleninka.ru/article/n/agropromislova-integratsiya-vazhliviy-chinnik-investitsiynoyi-privablivosti-silskogo-gospodarstva/viewer (accessed 26 July 2024). [In Ukrainian].
11. Habor, V. (2018). Organizational and economic mechanism of integration in agro-industrial production Suchasni napriamy ta perspektyvy rozvytku ahro- ta elektroinzhenerii: Mizhnar. naukovo-prakt. konf. m.Berezhany, Nov, 16, 2018y, 68-69. Retrieved from http://surl.li/xfxykz. (accessed 26 July 2024). [In Ukrainian].
12. Simeini fermy v SShA: klasyfikatsiia ta osoblyvosti. Kurkul – onlain-asystent fermera. [Family farms in the United States: classification and features. Kurkul is an online assistant to the farmer]. Retrieved from https://kurkul.com/blog/107-simeyni-fermi-v-ssha-klasifikatsiya-ta-osoblivosti (accessed 26 July 2024). [In Ukrainian].
13. Sluzhba novyn. TOP-10 faktiv pro silske hospodarstvo Niderlandiv. Kurkul – onlain-asystent fermera. [News service. TOP-10 facts about agriculture in the Netherlands. Kurkul is an online assistant to the farmer]. Retrieved from https://kurkul.com/spetsproekty/284-top-10-faktiv-pro-silske-gospodarstvo-niderlandiv (accessed 26 July 2024). [Іn Ukrainian].
14. Peter, M. V. (2017). Principles of regional economic policy of France regarding the development of agricultural cooperation: a lesson for Ukraine. Elektronnyi zhurnal «Efektyvna ekonomika», 6. Retrieved from http://www.economy.nayka.com.ua/?op=1&z=5664 (accessed 26 July 2024). [Іn Ukrainian].
15. Brazyliia: ahrarnyi hihant na tropichnomu troni. [Brazil: an agricultural giant on a tropical throne. Akhroelite]. AhroElita. Vseukrainskyi ahrarnyi zhurnal. Retrieved from https://agroelita.info/brazyliia-ahrarnyy-hihant-na-tropichnomu-troni/ (accessed 26 July 2024). [Іn Ukrainian].
16. Silske hospodarstvo krainy, de skhodyt sontse [Agriculture in the land of the rising sun]. AhroElita. Vseukrainskyi ahrarnyi zhurnal. Retrieved from https://agroelita.info/silske-hospodarstvo-krajiny-de-shodyt-sontse/ (accessed 26 July 2024). [In Ukrainian].
17. Ahronovyny. Indiia: ahrarni reformy vyvodiat miliony fermeriv na protesty. [Achronovini. India: agrarian reforms lead millions of farmers to protest]. AgroPortal.ua. Retrieved from https://agroportal.ua/blogs/indiya-agrarnye-reformy-vyvodyat-milliony-fermerov-na-protesty (accessed 26 July 2024). [In Ukrainian].
18. Fraichuk, O. M. (2005). Prerequisites for the integration of Ukraine's agro-industrial complex into the world economy. Ekonomika APK, 12, 58–63. [In Ukrainian].
19. Kaptalan, S. M. (2016). Theoretical problems of integration in the agro-industrial complex. Hlobalni ta natsionalni problemy ekonomiky, 12, 259-264. Retrieved from http://global-national.in.ua/archive/12-2016/56.pdf (accessed 26 July 2024). [In Ukrainian].
20. Oliinyk, A. S., Oliinyk, Ye. O. (2019). Management of the competitiveness of domestic agricultural enterprises against the background of world markets. Formuvannia ta perspektyvy rozvytku pidpryiemnytskykh struktur v ramkakh intehratsii do yevropeiskoho prostoru [The formation and prospects of the development of enterprise structures within the framework of integration into the European space]: mater. II mizhnar. nauk.-prakt. konfer (zaoch. forma). m. Polatva, 2019, 405-408. Retrieved from https://dspace.pdau.edu.ua/bitstreams/03adbbd1-9736-4929-b104-9a8915756bc7/download (accessed 26 July 2024). [In Ukrainian].
21. Nemchuk, P. (2023). Peculiarities of managing the development of corporate agrarian formations. Acta Academiae Beregsasiensis Economics. Rozdil Menedzhment ta innovatsiinyi rozvytok, 4, 633-642. 10.58423/2786-6742/2023-4-633-642. Retrieved from https://dspace.kmf.uz.ua/jspui/handle/123456789/3589 (accessed 26 July 2024). [In Ukrainian].
22. Proshchalykina, A., Kyryliuk, E. & Kyryliuk, I. (2019). Prerequisites for the development and prospects of organic agricultural products market. Entrepreneurship and Sustainability, 6(3), 1107-1117. 10.9770/jesi.2019.6.3(18) Retrieved from https://www.researchgate.net/publication/331836954_Prerequisites_for_the_development_and_prospects_of_organic_agricultural_products_market (accessed 26 July 2024).
23. Kaptalan S. M., Litvinov O. S. (2017). Essence and types of mechanisms in the economy. Skhidna Yevropa: ekonomika, biznes ta upravlinnya, 6 (11), 142-145. URL: http://www.easterneurope-ebm.in.ua/journal/11_2017/30.pdf (accessed 26 July 2024). [In Ukrainian].
24. Dankevych, A. Ye. (2019). Ekonomichni ta sotsialni naslidky formuvannia intehratsiinykh struktur u ahrarnomu sektori ekonomiky. Stalyi rozvytok silskykh terytorii: monohrafiia. Kyiv, 291–307. Retrieved from https://dspace.nuft.edu.ua/items/c3e12587-bea2-4a7f-b968-f1992651c542 (accessed 26 July 2024). [In Ukrainian].