JEL Classification: Q10; Q13; Q14; Q19. | DOI: https://doi.org/10.31521/modecon.V47(2024)-06 |
Yuriy Kormyshkin, Doctor of Sciences (Economics), Professor of the Department of Public Management and Administration and International Economics, Mykolayiv National Agrarian University, Mykolayiv, Ukraine
ORCID ID: 0000-0002-7691-3012
e-mail: kormyshkin@mnau.edu.ua
Challenges and Tasks of the Agricultural Sector of Ukraine in Conditions of Military Aggression
Abstract. Introduction. Ukraine’s agricultural sector has suffered from the war in all its aspects, as the industry’s assets are located throughout the country. Even enterprises located in regions where active hostilities did not take place faced the consequences of the invasion, including a decline in grain prices due to market congestion, export blockades, power outages, labor mobilization, and resource shortages.
Today, it is clear that the hostilities did not end in three days, nor did they end after nearly three years. In this regard, it is extremely important to identify the challenges that the Ukrainian agribusiness sector faced at the beginning of the full-scale invasion, as well as to formulate tasks and develop the next steps for their implementation.
Purpose. The purpose of the article is to identify the challenges and threats to the agricultural sector of Ukraine, as well as to formulate the tasks of agricultural policy to overcome them in conditions of military aggression.
Results. The article examines the problems of the agricultural sector, challenges and threats caused by military aggression; updates this area of research in connection with the dynamics of military actions and their consequences for farmers; presents the structure of the agro-industrial complex; gives examples of negative impact on the development of the agricultural industry; groups the main challenges and trends of the agricultural sector in 2024, which will occur in the coming years; identifies the main needs of farmers to ensure a stable environment and maintain business indicators at the proper level; Outlines the expectations of representatives of small and large agribusinesses in connection with changes in tax legislation and state policy; considers the challenges of the pre-war period caused by climate change; states that the main tasks of support of the agricultural sector in conditions of full-scale war are to ensure the efficiency of the entire chain “production – processing – storage – supply of food to the population”; proposes priority tasks of state agrarian policy in the near future and the post-war period.
Conclusions. Taking into account the above, it can be stated that agribusiness in modern conditions is a multifaceted component of both the national and global economy. This is especially true for Ukraine, where agricultural production plays a key role in ensuring the country’s food security and creating export potential. Since the beginning of the full-scale invasion, the Ukrainian economy, especially the agricultural sector, has been facing unprecedented challenges that affect both agricultural enterprises and small farmers. The outlined main challenges and trends in the agricultural sector determine the development vector for commodity producers, taking into account current realities and prospects. The given priority tasks of the state agrarian policy should become the basis for the creation of a reliable foundation for the prosperity of the agricultural sector in the post-war years.
Keywords: agricultural sector; agro-industrial complex; agriculture; challenges; military aggression; export; logistics; financial support.
References:
- Sirenko, N., Lunkina T., Burkovska A., & Mikuliak, K. (2021). An Assessment of the Financial and Economic Security of the Agricultural Sector in Ukraine. Financial and Credit Activity Problems of Theory and Practice, 4(39), 241–250. https://doi.org/10.18371/fcaptp.v4i39.241313.
- Yekimov, S., Nianko, V., Sirenko, N., Burkovska, A., Bodnar, O. (2022). The Problem of Attracting Private Investment in Agriculture. In: Muratov A., Ignateva S. (eds) Fundamental and Applied Scientific Research in the Development of Agriculture in the Far East (AFE-2021). AFE 2021. Lecture Notes in Networks and Systems, vol 353. Springer, Cham. https://doi.org/10.1007/978-3-030-91402-8_7.
- Nechyporenko, O., Bodnar, O., Ihnatenko, V. and Chesakova, M. (2022). Problems and Prospects of the Development of the Agrarian Sphere in the Conditions of the Russian-Ukrainian War and the Post-War Economic Recovery. Econ. Aff., 67(05): 933-941.
- Rexhaj, F., Vilks, A., Sirenko, N., Dubinina, M., Melnyk, O. & Bodnar O. (2023). Participation of international organisations in solving the problems of the agricultural sector of Ukraine, International Journal of Environmental Studies. DOI: 10.1080/00207233.2023.2170572.
- Hospodaryk, D., Pomyluyko, S. (2024). Management of the development of agricultural enterprises: challenges of post-war reconstruction and globalization. Economic Analysis, 34 (2), 360-371. DOI: https://doi.org/10.35774/econa2024.02.360.
- Shevchenko-Perepyolkina, R.I. (2022). Problems of agrarian business during martial law. Market infrastructure, Issue 66, 87-92. https://doi.org/10.32843/infrastruct66-16.
- Ministry of Agrarian Policy and Food of Ukraine: official website.( 2024). https://minagro.gov.ua/
- State Statistics Service of Ukraine: official website. (2024). https://www.ukrstat.gov.ua/
- Youcontrol (2024). Ahropromyslovyi kompleks Ukrainy, ohliad nishi ta realii sohodennia. https://blog.youcontrol.market/aghropromislovii-komplieks-ukrayini-oghliad-nishi-ta-riealiyi-soghodiennia/
- Mamonova, N., Borodina, O. & Kuns B. (2023). Ukrainian agriculture in wartime: Resilience, reforms, and markets. https://www.tni.org/uk/article/ukrainian-agriculture-in-wartime/
- KSE Agrocenter (2023). Agriculture in Ukraine: pre-war, status quo and a look ahead. https://kse.ua/wp-content/uploads/2024/03/Market-analysis-and-Outlook-of-Ukraine-2023.pdf.
- Rusan, V. M., & Zhurakovska, L. A. (2024). The agricultural sector of Ukraine in 2023: components of sustainability, problems and future tasks. Center for Economic and Social Research. Department of Sectoral Economics of the National Institute of Statistics. https://niss.gov.ua/sites/default/files/2024-02/az_agrosektor_15022024.pdf.
- Rusan, V. M., Zhurakovska, L. A., Zhalilo, Ya. A. et al. (2024). Prospects for the development of the agricultural sector of Ukraine in the context of climate change: analytical supplement. Kyiv: National Institute of Statistics, 47. https://doi.org/10.53679/NISSanalytrep.2024.09/
- Katsylo, D. (2024). Map of Ukrainian agricultural exports. How Ukraine’s agro-industrial complex survived under shelling, without ports and despite damage from the Russians. A great graphic story from Forbes. https://forbes.ua/war-in-ukraine/karta-ukrainskogo-agroeksportu-2023-16042024-20423.
Received: 25 October 2024
How to quote this article? |
Kormyshkin Yu. (2024). Challenges and Tasks of the Agricultural Sector of Ukraine in Conditions of Military Aggression. Modern Economics, 47(2024), 39-45. DOI: https://doi.org/10.31521/modecon.V47(2024)-06. |