FARMS’ STRATEGIC DEVELOPMENT IN CONDITIONS OF EUROPEAN INTEGRATION

  • Д. Г. Легеза Tavria state agrotechnological university
Keywords: сompetitive advantages, farm strategy, agricultural products, internal market, profitability, market share.

Abstract

Abstract. Deeping of strong relations between Ukraine and the European Union resulted in meaningful changes in agriculture development and a strategic way of farms. The author notices that integration has caused the raising of the agricultural product export, but the import of value-added products overflows the internal market. The aim of the article is to base the main principles of the strategic development of agricultural market according to conditions of European integration. The author uses regular statistic methods to examine export-import volumes and implements strategic analysis to observe market threats and opportunities.
The main Ukrainian products sold in Europe are cereals, oilseeds, dry milk, beef, and pork. The product amount has not been changing since signing the Association Agreement between Ukraine and the European Union. It was revealed that the import price of the primary agricultural products is higher than import: in 10 times (cereals), 117 times (oilseeds), twice (dry milk). The agricultural import prices have extremely increased while the export prices have been stable. The visa-free regime with countries of the European Union has resulted in an outflow of agricultural laborers. Only 85% of laborers work in agricultural enterprises in 2017 compared with 2013 years. The profitability of agricultural products has been decreased since 2013 while the price has been increased no less than twice. Cereals and oilseeds have a significant part in distribution structure. The author proposes the crucial strategic issues to solve the problems connected with integration such as the implementation of Agriculture 4.0, using the quality management sys-tem and developing of affordable price formation.

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Published
2018-12-17