FOOD INDUSTRY DEVELOPMENT IN THE CONTEXT OF THE FOOD SECURITY OF REGIONS OF UKRAINE

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FOOD INDUSTRY DEVELOPMENT IN THE CONTEXT OF THE FOOD SECURITY OF REGIONS OF UKRAINE

Journal Title: Baltic Journal of Economic Studies - Year 2017, Vol 3, Issue 5

Abstract

The purpose of the study is to substantiate the food security needs in the regions of Ukraine, as well as the definition of tasks in filling the market with own production products. The obtained results will determine the directions of structural changes in agricultural complexes of the regions and the necessary measures by the public regulatory bodies. Methodology. The research is based on a comparison of results of normative and search forecasts. In developing normative forecasts, the projected population and needs in different types of products according to the norms of rational consumption are taken into account. Search forecasts provide for the definition of a future state of satisfaction with the preservation of existing development trends. The gap between the necessary and projected results determines the task of accelerating growth. In terms of national security, food production should be provided with its own raw material base. Therefore, an analysis of the conditions for the development of livestock and crop production is necessary, which enables to substantiate the directions of systemic changes in agricultural complexes of the regions. In order to ensure positive changes in the structure of agricultural production, strengthening the effectiveness of public regulation on the basis of financial and economic leverage is needed. Results. Regions of Ukraine by territory and population exceed certain countries of the European Union. Significant differences in socio-economic conditions of the regions contribute to the growth of tension in society and migration. The events of recent years indicate the possibility of external interference in the functioning of the regions of Ukraine and the danger of the collapse of cooperative ties. Therefore, it is important to ensure the satisfaction of the immediate needs of the population of each region at the expense of its own production. Among the necessities, food occupies a special place. Complete nutrition is one of the prerequisites for increasing the life expectancy of the population. The development of the production of these goods positively affects the economy, because it provides employment, rapid cash flow, and budget filling. However, food consumption is limited by physiological needs. Therefore, the potential capacity of the food market depends on the demographic structure, population size, and rational consumption standards. According to the results of the study, excessive consumption of bread and potatoes by Ukrainian people and too little consumed meat and dairy products, fruits are detected. During the years of Ukraine’s independence, the share of livestock farming in agricultural complexes of regions has significantly decreased. In plant growing, there are also structural changes in the direction of reducing the forage base and increasing crop areas under technical crops that deplete the land. These changes threaten the irreversible loss of soil fertility. Therefore, governmental stimulation is required not only for the revival of livestock but also for the rational use of sown areas. Practical implications. The results of a comparative assessment of the potential capacity of regional food markets with the current state of satisfaction of the population’s needs will reveal the necessary directions for the development of the food industry and agriculture of the regions. Value/originality. A systematic approach to the formation of plans for the development of the food industry that meets the requirements of food security and the corresponding changes in the ratio of livestock and crop production, the structure of crop areas is proposed. This approach has not only a scientific novelty but also contributes to increasing the positive impact of the food industry on the sustainable development of both individual regions and the country as a whole.

Authors and Affiliations

Mykola Mykolaichuk, Nataliya Mykolaichuk

Keywords

EP ID EP635270
DOI 10.30525/2256-0742/2017-3-5-304-310
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