Scientific Advisor – Dobrzhanska I., Consultant – Soloviova O. Chernivtsi Trade and Economics Institute of KNTEU, Chernivtsi
AGRO-INDUSTRIAL COMPLEX AS AN IMPORTANT ELEMENT OF MARKET ECONOMY OF UKRAINE (STATUS AND PROSPECTS)
Ukraine is a state which has considerable opportunities in agricultural production. Its agricultural sector is one of the main branches of material production which plays an important role in the life of society. However, our domestic market of agricultural products remains spontaneous. The main features are 1) lack of market infrastructure; 2) absence of developed legal framework that hinders to establish a large-scale market activity; 3) lack of information and communication components of the organized agricultural markets. Due to these facts a considerable shady sector is characteristic for agricultural sector of Ukraine. It should also be recognized that the technology lag of agricultural production in Ukraine in comparison to developed countries remains an urgent problem. Ukraine loses in main indices of manufacturing efficiency: labour productivity, technical and technological supply, power consumption, productivity of agricultural crops, livestock production; and as a result our domestic products are considered non-competitive on the foreign markets. [2, pp. 62] Despite difficult economic and financial situation Ukrainian agricultural sector continues to provide foreign exchange incomings to the country. Manufacture of GDP in 2010 in all categories of agriculture increased in comparison to the year 2009 on 5.3 per cent. Gross output of agricultural enterprises increased on 12.6 per cent and production of separate households - fell on 0.7 per cent. The volume of gross output increased in 20 regions, for example in the Cherkassy region (42.7%), Dnipropetrovsk (6%), Donetsk (by 5.9%), Kharkiv (by 5.7%), Zaporozhye ( by 4.7%). The volume of agricultural production decreased in 5 regions: Volyn – 2.9%, Zacarpatie – on 2.2%, Odesa - 2%, Kherson - 0.6%, Khmelnitsky – 0.5 %.  Agricultural enterprises in 2010 (on 4/15/2010) were granted loans for 1447.3 million hryvnias, that is on 20.2% more than those provided in the corresponding period of the previous year. Of the total amount received short-term loans accounted for nearly 1181 million hryvnias (26.7% for the need of spring field work), middle-term loans – for 145.2 million, long-term loans – for 121.1 million. Loans were given to 636 enterprises. 4128.7 million hryvnias of tax payments came from agricultural enterprises to the consolidated budget on the 1st of March, 2010, that in its turn, is 1.6 times more than was paid on the 3rd of January, 2009. Tax debt to consolidated budget amounted to 472.2 million hryvnias and decreased in January-February this year on 38.3 million (8%). As the fixed agricultural tax 17.9 million hryvnias were paid to the consolidated budget. That is on 0,1 million or on 0.6% more than was paid in the same period of 2009.  In agriculture there still exists the debt of 63.8 million hryvnias of unpaid wages, including the economically active enterprises – 26.8 million (42% of the total amount owed to farmers), bankrupt businesses – 30 million (47%) and economically inactive enterprises - 7 million (11%). In economically active farms wages debt in January-February 2010 increased on 1.5 million or on 5.8%. Foreign trade turnover of agricultural products in January-March 2010 reached 3572.1 million dollars (8.6% more than in the corresponding period of the previous year). Foreign trade surplus was positive; it comprises 841.7 million dollars. The volume of crop production export was 2001.4 million dollars, or 90.7% of the total agricultural products export, livestock export brought - 205.5 million dollars, or 9.3%. The volume of crop production import accounted for 1045 million USA dollars, or 76.5% of total agricultural products import, while livestock import was represented by 320.2 million dollars, or 23.5%.  This is the situation in agro-industrial complex of Ukraine. This is despite the immense difficulties farmers and exporters came across in these difficult years of the overall world economy crisis. However, if the government does not change the situation to support the agricultural sector and VAT refunds to exporters, Ukraine risks to turn from an influential player on the world market of agricultural products not only into an outsider, but in a general importer and consumer. The perspectives of future development of agriculture of Ukraine can be viewed on the background of agriculture sphere of developed countries. In such counties as the USA, Canada, Great Britan and others service engineering and economic support from the technical centers of large engineering firms and dealers (who are economically or legally independent) have been considerably spread. They also practice machine-building technology for farmers in credit and supplying agricultural products in stores. Thus from 70 to 90% of companies - manufacturers of agricultural products in these countries – are applying for the services of dealers. [4, pp. 144] Managing competitive environment in agriculture of our state has a great significance for ensuring the process of extended reproduction and enterprises development in the harmonious combination with social needs. Thus, the development of strategy of increasing the competitiveness in the agricultural sector of Ukraine is one of the most important national economic objectives at the present stage of development.  So, taking into consideration everything mentioned above we can make a conclusion that the priorities of the government work, aimed at rising the competitiveness of agricultural outputs and harmonization of production today, should be: improving the financial and economic conditions of agricultural enterprises, including formation of the access to financial resources and government support and favourable tax conditions; increasing the efficiency of agricultural production due to technological re-equipping on the bases of innovative and investment model of development; harmonization of standards on agricultural products and provisions with the world ones; introduction of international standards; equipping and accreditation of state laboratories, which control the quality of agricultural products taking into consideration the experience and demands of the EU; broadening the presence of the Ukrainian agricultural products on the world market. [2, pp. 63] Bibliography: 1. Державний комітет статистики України. - [Електронний ресурс] - Режим доступу: http://www.ukrstat.gov.ua/. 2. Копистенко О.В. Теоретичні основи конкурентоспроможності сільськогосподарської продукції // Економіка АПК. – 2010. - №1. – С. 61-63. 3. Проблеми та перспективи розвитку агропромислового комплексу України. - [Електронний ресурс] - Режим доступу: http://revolution.allbest.ru/agriculture/00225580_0.html. 4. Щекович О.С. Використання зарубіжного досвіду державного регулювання економіки АПК в Україні // Економіка АПК. - 2009. - №1. – С. 140-146.