Construction of Effective Livestock Insurance Model in Ukraine

Subject Areas : Camel

O.  Alshanova ¹ (Department of Animal Husbandry of Ministry of Agrarian Policy and Food of Ukraine 24, 01001, Kyev, Ukraine)

Received: 2013-09-24 Accepted : 2013-11-16 Published : 2014-09-01

Keywords: Ukraine, agricultural market, livestock insurance,

Abstract :

The problem of food security during the last few decades has acquired a global character. Population growth, reduction of farmland suitable for agriculture and ecological factors has led to a sharp increase in food demand. In such conditions, the role of countries which are able to increase the export of agricultural production in short-term periods is rising. Ukraine has great opportunities for the agricultural production because of favorable climatic conditions and strong human resources. However, the existing potential of the agricultural sector is mainly in the crop, which significantly reduces the competitive strategies of Ukraine in the world market. The absence of effective mechanisms of insurance protection is one of the important factors which hinder the development of livestock in Ukraine. The world experience shows that livestock insurance turned into current state policy supports the agricultural sector. Ukraine’s integration into global agricultural market provides the applying of unified livestock insurance mechanisms which proved their capacity in other countries. At the present stage, the state prefers other forms of entrepreneurship support in livestock-through price regulation, subsidization and the facilitation of access to financial resources. At the same time, Ukrainian companies operating in the agricultural sector need insurance protection.Implementation of livestock insurance’s foreign experience in Ukraine is complicated by the absence of effective agricultural marketplaces and appropriate market infrastructure. The current state of public finances significantly reduces the probability of successful implementation of the system scenarios livestock insurance based on the active use of central funds. Therefore, Ukraine should make an effort to meet demand for insurance products from the side of livestock producers with the minimal use of budget funds. That is why it is necessary for the state to create conditions for the formation and operation of effective model of livestock insurance and providing optimal solving of current tasks of this sector’s development.

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