THE PECULIARITIES OF THE FLAX INDUSTRY DEVELOPMENT AND FINANCING

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THE PECULIARITIES OF THE FLAX INDUSTRY DEVELOPMENT AND FINANCING

Journal Title: Аграрна економіка - Year 2016, Vol 9, Issue 1

Abstract

The article solves the important scientific and practical task to identify the problems of the production of flax in Ukraine and providing practical recommendations to improve its effectiveness. It was found that over the last decade, the sown area of flax in Ukraine has decreased by 172 times, and the gross harvest of flax fibers – in 180 times. According to the analysis, it was found that the planted area of 50 ha, the gross harvest of flax products 440 C – fiber, C 1700 – trusts and 220 kg – seeds. When over seeding an area of 250 ha, the gross harvest of flax products will increase almost in 6 times – 2500 kg fiber, 9650 C – trusts and 1250 C – seeds. It was revealed that today specialized growing areas of flax include the following regions: Volyn, Zhytomyr, Ky-iv, Lviv, Sumy, and Chernihiv. This is because they have optimal climatic conditions for the cultivation of flax – appropriate soils, the required amount of active temperatures and precipitation and the required level of human resources. It is necessary to note a significant reduction in acreage under flax-fiber, which during 1990-2014 years decreased by 76%. If, in 1990 USSR countries accounted the 73% of all acreage, the countries of Europe (France, Belgium, Netherlands) – less than 10%, Egypt, Argentina, Chile, China about 4%, and now the situation has changed significantly – most of the acreage under flax-flax is concentrated in France – 25%, second and third in Belarus and Russia – 24% and 20% respectively, and the 13% – in China. Ukraine occupied only 1% of world acreage of flax. The main feature of the flax production in France and Belgium is that that at the state level in these countries the Association of manufacturers of flax fiber was created. One form of integration is to rent processing enterprises in the distribution of land. In such countries as the Czech Republic and Belgium this kind of the organization of relationship helps farmers in harvesting, processing and sale the flax products. Farmers receive the proceeds from the sale of fiber except for the cost of shipping. For the improvement of economic relations in flax industrial subcomplex it it proposed to use both horizontal and vertical integration. On the basis of the horizontal integration the conditions for the buying and using the modern technologies by the small farmers will be created. Vertical integration in the flax industrial subcomlex is more efficient and adapted to market relations. The creation of a closed production chain, from cultivation of flax and its processing at all stages to finished products under long-term, cost-effective relations between the spheres, will increase the competitiveness of flax products at all production stages and the efficiency of the flax industrial subcomlex as a whole.

Authors and Affiliations

O. Dominska, G. Skhidnytska

Keywords

the flax industrial subcomplex production region sources of financing foreign experience agroindustrial formation

EP ID EP437367
DOI -
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