Strategic Management of the Investment Process in the Agricultural Sector (for Example, Agricultural Enterprises and the Food Industry)

Authors

1 Kyiv Ukraine Research Institute of Economic Development, Kyiv Ukraine.

2 Odessa State Agrarian University, Odessa, Ukraine.

3 Chernihiv National University of Technology, Сhernihiv, Ukraine.

4 Chernihiv National University of Technology, Сhernihiv, Ukraine

5 Poltava State Agrarian Academy, Poltava, Ukraine

10.22094/joie.2020.677867

Abstract

The article presents the results of a study of the nature and characteristics of investment processes in the agricultural sector (by the example of agriculture and food industry in Ukraine), as well as recommendations on the modernization of the mechanisms for strategic management of these processes. It is noted that the restoration and development of Ukraine is possible on the basis of the effective development of agricultural entrepreneurship, which can be achieved through the use of a set of interrelated measures of a financial, economic, industrial, technical, organizational and social nature, aimed at the withdrawal of such anti-crisis and restoration organizations or their achievement profitability and competitiveness. The state policy for the development of agricultural enterprises should provide for the creation of a favorable investment climate for domestic and foreign investment. The authors note that in modern conditions of development of the national macroeconomic environment, the solution of this problem involves not only the development and formulation of market strategies, but primarily the solution to the problem of creating and implementing an effective mechanism for implementing intra-industry strategic decisions. At the same time, it should be taken into account that many issues of the formation and implementation of the state policy for regulating the development of agricultural enterprises in the face of institutional uncertainty and financial instability have not yet received adequate coverage. the authors concluded that direct government subsidies for agribusiness in Ukraine are harmful. They are distributed opaque, distort competition, produce corruption and nervousness. As a result, the interest of diligent agricultural producers is declining. Corruption and opacity lead to an unreasonable increase in prices for agricultural products. Based on the analysis, it is shown that the best way of state support for agricultural production is investment in rural areas - an increase in investment costs for roads or education in rural areas. It should also be taken into account that one of the tasks of state policy is to increase employment in rural areas, therefore it is necessary to support not only individual producers, but also “non-agricultural” employment, for example, “green tourism”. Also, government support should be distributed “automatically”, and not selectively. For this, it is important to develop and implement appropriate criteria. the economic security of economic entities in the agricultural sector should be the subject of an economic strategy in the food industry. The reduction or exclusion of business entities from participation in many areas of intra-industry life creates enormous economic risks (threats) for the near and long-term prospects of the food industry. Therefore, in order to ensure socio-economic development in the food industry, it is necessary to develop and introduce intra-industry socio-economic policies that will ensure the growth of key indicators in the national macroeconomic environment.

Graphical Abstract

Strategic Management of the Investment Process in the Agricultural Sector (for Example, Agricultural Enterprises and the Food Industry)

Keywords


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