AGROINDUSTRIAL VERTICAL INTEGRATION AS THE KEY FACTOR OF UKRAINE FOOD SECURITY
Journal Title: Проблеми і перспективи розвитку підприємництва - Year 2015, Vol 2, Issue 1
Abstract
Analysis of Ukraine food security in 2014, a statistical analysis of the main indicators that describe the state of its individual components, separation problems worsened due to escalation of economic and political crisis in the country are the subject of the research paper. The problem of food security of the population is now extremely urgent and demands immediately to face it: this is, first of all, the total poverty and deepening social differentiation as the result of a catastrophic devaluation and a significant decline in real incomes, which together with the "old known" problems of imbalance food and its low nutrient could lead to social collapse in Ukraine. In order to solve identified problems and to develop prospects of food security at the appropriate level the main key factors of influence were allocated according with the modern realities. Author made an attempt to prove a scientific hypothesis that improving the current situation of food security of the population and the country need to be enhanced by vertical integration processes in agroindustrial key sectors towards a large agricultural holdings and vertically integrated companies that would allow to increase the level of competitiveness of domestic food production and reduce import dependency of some food groups. The disputable issues of the formation and operation of vertically integrated companies in the domestic agroindustrial area were shown. It is concluded that under current conditions, when Ukraine is almost impossible to protect themselves from volatility, best risk diversification for the food industry is the vertical integration.
Authors and Affiliations
Tetyana Gamma
Keywords
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