Determinants of Neutralizing the Influence of the Production Risks of Agricultural Enterprises on the Competitiveness Processing Industry
Subject Areas : Agricultural ExtensionTetiana Yavorska 1 , Oksana Kostyuk 2 , Mykola Kostiuk 3 , Sergiy Tsviliy 4 , Viktoriia Ogloblina 5
1 - Department of Economics and Business Dmytro Motornyi Tavria State Agrotechnological University69063, 66 Zhukovskoho Str., Zaporizhzhia, Ukraine
2 - Department of Accounting and Taxation Bila Tserkva National Agrarian University 09117, 8/1 Soborna Sq., Bila Tserkva, Ukraine
3 - Department of Economics and Business Dmytro Motornyi Tavria State Agrotechnological University69063, 66 Zhukovskoho Str., Zaporizhzhia, Ukraine
4 - Department of Tourism, Hotel and Restaurant Business National University “Zaporizhzhia Polytechnic” 69063, 64 Zhukovskoho Str., Zaporizhzhia, Ukraine
5 - Department of Information Economics, Entrepreneurship and Finance Engineering Institute of Zaporizhzhia National University 69006, 226 Soborny Ave., Zaporizhzhia, Ukraine
Keywords: agriculture, system of economic relations, crisis, competitiveness,
Abstract :
The article explores the impact of production risks in agricultural enterprises on the competitiveness of the processing industry, considering information asymmetry in an unpredictable environment. It identifies key production-stimulating elements crucial for processing industry competitiveness using the theory of value. Economic ties between agricultural enterprises and processing industry subjects aim to integrate production and technological cycles for enhanced competitiveness. The calculation of added value incorporates “Input-Output” indicators in mutual benefit flows between these entities. The article characterizes quasi-crisis pressures in the processing industry, providing indicators for economic relations between agricultural enterprises and processing industry subjects. It analyzes Ukraine's grain, oil, and animal-origin raw material production for the processing industry and assesses the country's processing industry competitiveness crisis level. The financial processes of meat-processing agricultural holdings in Ukrainian regions, excluding occupied territories, are studied, considering private foreign investments pre-war and during martial law. Changes in the competitiveness crisis level of meat-processing agroholdings are calculated, incorporating the production and technological cycle. The article concludes with anti-crisis scenarios for cross-industry interaction to neutralize competitiveness crisis factors.
1. Aditto, S., Gan, C., & Nartea, G. (2012). Sources of risk and risk management strategies: the case of smallholder farmers in a developing economy. Retrieved from: https://www.intechopen.com/chapters/38993
2. Davydov, O. I. (2017). Problems and prospects of application of the indicator of economic added value in cost oriented management of enterprises. Economic Analysis, 3(27), 190-198.
3. Government portal (2021). The government has restored support for agribusiness entities by partially compensating interest on loans. Retrieved from: https://www.kmu.gov.ua/news/derzhpidtrimka-2021-uryad-vidnoviv-pidtrimku-subyektiv-gospodaryuvannya-apk-shlyahom-chastkovoyi-kompensaciyi-vidsotkiv-za-koristuvannya-kreditami
4. Halchynskyi, A.S. (2009). Crisis and cycles of world development. Kyiv: ADEF-Ukraine.
5. Hermann, A. (2015). The systemic nature of the economic crisis the perspectives of heterodox economics and psychoanalysis. London; New York: Routlege, 226 p.
6. Hunt, S.D. (2000). A general theory of competition: resources, competences, productivity, economic growth. Thousand Oaks; London; New Delhi: Sage Publications, 385-393.
7. Hrynchutskyi, V.I. & Blashchak, B.Ya. (2018). Food industry of Ukraine: current status, trends and prospects. Innovative Economy, 9-10, 51–60.
8. Jankelova, N., Masar, D. & Moricova, S. (2017). Risk factors in the agriculture sector. Agricultural Economics, 63(6), 247-258.
9. Janowicz-Lomott, М. & Łyskawa, К. (2014). The New Instruments of Risk Management in Agriculture in the European Union. Procedia Economics and Finance, 9, 321-330.
10. Johnson, A.M., Boehlje, M.D. & Gunderson, M.A. (2017). Agricultural credit risk and the macroeconomy: Determinants of Farm Credit Mid-America PD migrations. Agricultural Finance Review, 77(1), 164-180.
11. Kholod, Z.M. & Shtanhret, A.M. (2002). Methodological aspects of crisis management. Industrial Economics, 2, 23-26.
12. Khrypiuk, V.I. (2018). Food industry of Ukraine: retrospective analysis and modern problems of development. Economics of Agro-Industrial Complex, 9, 77-86.
13. Kovalenko, O. V. (2018). Added value in the context of national food security. Economy and State, 4, 98–102.
14. Lendiel, M.A. & Zhulkanych, O.M. (2015). Specifics of inter-sectoral organizational and economic relations in agro-industrial production: analytical aspect. Scientific Bulletin of Mu-kachevo State University, 2(1), 42–48.
15. Lorant, A. & Farkas, M. (2015). Risk management in the agricultural sector with special attention to insurance. Polish Journal of Management Studies, 11(2), 71-82.
16. Martynova, L.V. (2014). Development of tools for forming an adaptive risk management strategy for the economic activity of a grain processing enterprise based on game theory. V. Dahl Bulletin of the East Ukrainian National University, 8(215), 119-126.
17. Nelson, O., Mancilla, W., & Sepúlveda, S. (2017). Upstream information distortion in the agro food supply chain. Supply Chain Management: An International Journal, 22(5), 411–423.
18. Nitsenko, V.S. & Havrysh, V.I. (2016). Enhancing the stability of a vertically integrated agro-industrial companies in the conditions of uncertainty. Actual Problems of Economics, 10(184), 167-172.
19. Rod, O’Donnell (2021). Keynes and Knight: risk-uncertainty distinctions, priority, coherence and change. Cambridge Journal of Economics, 45(5), 1127-1144.
20. Shpachuk, V.V. (2010). Theoretical principles of crisis typology. Scientific Bulletin of the Academy of Municipal Administration, 4. Retrieved from: http://www.Nbuv.gov.ua/portal/Soc_Gum/Nvamu_upravl/2010_4/33.pdf.
21. Shmahlii, O. B. (2017). Food industry of Ukraine: national and global dimension of modern dynamics. Food Resources, 9, 90–97.
22. Shtymer, L.T. (2011). Modern paradigm of strategic management of enterprise potential in a competitive environment. Strategy of Economic Development of Ukraine, 28, 65-70.
23. Sivash, O., Ushakov, D. & Ermilova, M. (2019). Investment process resource provision in the agricultural sector. IOP Conference Series: Earth and Environmental Science, 272(3), 032118.
24. State Statistics Service of Ukraine (2018). Statistical publication of the Regions of Ukraine. Retrieved from: http://www.ukrstat.gov.ua/druk/publicat/kat_u/2018/zb/11/zb_ru1ch2018.pdf.
25. State Statistics Service of Ukraine (2021). Statistical Publication “Ukraine in Figures” for 2020. Retrieved from: http://ukrstat.gov.ua/druk/publicat/kat_u/2021/zb/07/zb_Ukraine%20in%20figures_20e.pdf.
26. Trusova, N.V., Tanklevska, N.S., Synchak, V.P., Prystemskyi, O.S. & Tereshchenko, M.A. (2020). State Support of Agro-Insurance of Agricultural Risks in the Market of Goods Derivatives of Ukraine. Industrial Engineering & Management Systems, 19(1), 93-102.
27. Vereshchaha, V.M., Pavlenko, O.M., Adoniev, Ye.O. & Rubtsov, M.O. (2019). Geometric method of interpolation of a point polynomial in parametric form. Modern Problems of Modeling, 16, 28-139.
28. Vitlinskyi, V.V. & Verchenko, P.I. (2000). Analysis, modeling and management of economic risk. Kyiv: KNEU.
29. Witteloostuijn, A. & Wegberg, A. (1992). Multimarket competition. Theory and evidence. Journal of Economic Behavior and Organization, 18, 273-282.
30. Yastremskyi, O. I. (1992). Modeling of economic risk. Kyiv: Lybid, 176 p.
31. Yevtushenko, H.V., Tymkiv, N.Ia. & Sheshenia, A.A. (2016). Features of risk management in the agricultural sector of the economy. Scientific Bulletin of the International Humanities University. Series: Economics and Management, 17, 49-52.
32. Zhmudenko, V.O. (2015). Peculiarities of risk management in the agrarian sphere. Bulletin of socio-economic research, 3(58), 55-61.