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7levels. Special attention should be paid to the development of infrastructure, both for the domestic agri-food market and for entering the world markets.
Conclusions: Thus, a systematic focus on solving environmental problems, taking into account environmental aspects, will increase the sustainability of the development of the entire agricultural complex of the country and create prerequisites for a radical solution to the problem of ensuring food security. The availability of a modernized system of science, education, and consulting and information services in the agricultural sector during the period of widespread introduction of innovative production and management technologies at
the global level is considered as the most important resource necessary to ensure competitiveness in this region of the country.
References
1. Zapolsky M. I. Cooperation and integration in the agro-industrial complex: textbook-Minsk: Bela-rus.nauka,2011. - p. 347.
2. Efremov N. A., Cherdakova M. P. Organics industry: world experience and Russian perspec-tives.https//www.fundamental.
3. Tkach A.V., Chervenko A.V. Cooperation in the agro-industrial complex at the present stage:trends, problems, and prospects// Economics of agricultural and processing enterprises, 2018 No. 5, pp. 50-55.
THE MAIN DIRECTIONS OF INNOVATIVE DEVELOPMENT OF THE CROP INDUSTRY ON THE
EXAMPLE OF ENTERPRISES OF LVIV REGION
Hrynyshyn H.
Candidate of Economic Sciences, Associate Professor of the Public Administration and Managemen, Stepan Gzhytskyi National University of Veterinary Medicine and Biotechnologies
Voinycha L.
Candidate of Economic Sciences, Associate Professor of the Department of Management, Lviv National Agrarian University Balash L.
Candidate of Economic Sciences, Associate Professor of the Department of Law and Management in the Field of Civil Defense, Lviv State University of Life Safety
Abstract
The main purpose of this article is to substantiate the problems of strategic managemen tand to develop a strategy for the development of the crop sectorin agricultural enterprises of the studied territory. The article deals with the mainissues of the practical application of methods of stimation of competitiveness of the plant industry in modern business environments. The rating of the regions of the studied territory by the availability of resources, the level and the results of the development of the plant growing industry were evaluated. The problems of increasing the competitiveness of crop production are relevance and strategic importance, which has led to an intensification of both international and domestic competition.
Under these conditions, it is necessary to develop a modern concept of increasing the competitiveness of crop production, in particular, in the direction of theoretical, methodological and practical research on the formation of elastic systems of marketing management, the formation of a strategy resource-saving technologies, balanced internal and external food relations, information and corporate organizational production structures in the field of agricultural production. It is proposed to use resource-saving technologies of crop production when using technical and technological modernization and digitization of production.
Keywords: market, strategic management, competitiveness, resource-savingtechnologies, digitization of production.
Introduction. Strategy for the development of the agricultural sector of Ukraine's economy for the period up to 2013-2020, considers agricultural production as the main component of the national economy. Since agricultural production provides the basic principles of preserving the sovereignty of the country - food security, and at the same time ensures the formation of economic, environmental and energy security, forms the basis of socio-economic development of rural areas.
Today, the level of economic development of agriculture, in particular crop production, determines the level of economic development of the country as a whole, so it is necessary to understand the main trends in agricultural production, which led to the choice of research topic.
The role of the agro-industrial sector in the country's economy can be considered decisive. According to the State Statistics Service of Ukraine, the agricultural sector is one of the leading sectors of the economy, its
share in total output in actual prices in 2019 is 9.6% and in total gross value added - 13.1%. Positive dynamics is typical for 2020 as well, with the crop industry accounting for 16% of the country's gross value added.
Stochastic environment, uncertainty in economic conditions puts farmers in a position where it is necessary to minimize risks in the production process, where the tool is strategic management as a means of forecasting the state of the environment and objects of interaction, and as a result of these forecasts long-term goals and methods of achieving them. Under the current conditions of uncertainty, the use of an adaptive approach to production management is not sufficient for intensive development of the crop industry, and an important condition for highly efficient operation of the crop industry is the use of strategic management tools that minimize uncertainty and reduce risks. Strategic management is important when considering the organization as a system, when planning combines economic, technological, social and supporting processes of the enterprise, as well as connects the internal and external environment, which leads to improved adaptability, flexibility and thus competitiveness of production.
Results. Today in Ukraine, as a result of agrarian transformations, a dual structure of agriculture has been formed, where the individual sector plays a significant role in ensuring the sustainable development of the agricultural sector of the economy. In contrast to the corporate sector, agricultural production is due to the need for self-sufficiency in food of peasant farms. However, the corporate sector in these conditions seeks only to maximize profits, which leads to disparities in the structure of agricultural production, in particular crop products, which is contrary to the principles of sustainable agricultural development.
Specialization in the cultivation of only certain crops has led to the emergence of such a phenomenon as monoculture. In particular, changes in the cultivation of crops over the past 20 years indicate the concentration of farmers on the production of commercialized (commercial) crops. We are talking about a significant increase in the studied period of sown areas under industrial crops: 4.3 times.
This situation is caused mainly by the expansion of crops under sunflower (up to 5849.3 thousand hectares, or 3.5 times) and soybeans (up to 1579 thousand hectares, or 16.9 times). However, it should be noted that under some industrial crops sown areas have decreased. For example, the sown area under sugar beets was significantly reduced in absolute terms (up to 220.6 thousand hectares) - almost twice. The grain and legume production sectors are also characterized by significant changes, the main of which are: an increase in sown areas under corn (2104 thousand hectares, or 2.7 times); expansion of areas under wheat; general reduction of areas under other cereals.
Changes in the values of sown areas in terms of crops affected the change in their structure. Thus, the share of industrial crops increased 1.6 times, but grain and legumes decreased (by 20%). These trends in sown
areas in the corporate sector are mainly caused by predefined commercial goals aimed at obtaining stable and high incomes. Given the low solvency and low demand in the domestic agri-food market of Ukraine, it is true that most corporate structures focus on the foreign market, which dictates the steadily growing demand for key crops, including cereals and oilseeds. Harmonization of crop development trends with the principles of sustainable agricultural development is possible by strengthening agricultural diversification, ie the formation of a balanced portfolio of crop rotations and the parallel addition of different crops. This can significantly improve the situation in domestic agricultural production and help ensure the reorientation of management in agricultural enterprises in the direction of its sustainability without significant financial investment. Soil fertility, as well as temperate climatic conditions form all the prerequisites for the effective development of the crop industry. Agricultural enterprises need to use the latest technologies to improve the productivity of agricultural production, because the latest technologies and know-how are a strong argument for increasing yields and maintaining agricultural products at a high level of competitiveness not only within the country but also abroad.
Using the rating method, the efficiency of the development of crop industries in terms of administrative districts of Lviv region was assessed. This assessment provides, on the one hand, to provide a description of the production and economic activities of agricultural enterprises in terms of districts, and on the other hand will provide a description of the state of the studied areas in the business environment and rating in industry competition. The rating provides a general assessment of the agricultural potential of districts, which allows it to be assigned to a certain category. The rating is formed in the form of a consolidated indicator, the increase or decrease of which informs about the dynamics of agricultural development of the studied areas. Based on the results of the rating assessment, it is possible to monitor the studied areas and adjust the indicators of production and economic activity of agricultural enterprises of the studied region.
Rating assessment of districts is carried out by analyzing the indicators of resource availability of agricultural enterprises, analysis of indicators of efficiency of use of production resources of agricultural enterprises, analysis of indicators of efficiency of agricultural production.
Determination of the rating was carried out in the following stages:
- calculation of indices by the ratio of a single value of the indicator to the largest in the region.
- ranking of districts according to each of the indicators (index).
- derivation of integrated indicators of each group.
- determining the rating of the district by deriving the average value of integrated indicators and further ranking of average values.
Table 1
Integrated indicators for assessing the efficiency of agricultural enterprises in the study region
District District rating Rating by integrated indicators
Provision of resources Productivity of the crop industry Final management indicator
Brody district 10 8 3-4 17
Busk district 6 15-16 5 5-6
Horodok district 11 6 9 18
Drohobych district 14 13 12-13 15-16
Zhydachiv district 5 2 10 9
Zhovkva district 13 4-5 16-17 10-12
Zolochiv district 8 14 7 8
Kamyanka-Buzkyy district 3 12 1 1
Mukolaiyv distric 15 18 12-13 10-12
Mosty district 17 10 16-17 20
Peremyshlayny district 9 11 11 7
Pustomyty district 7 7 14 5-6
Radekhiv district 4 9 8 3
Sambir district 12 17 3-4 13-14
Skole district 19 19 19 10-12
Sokal district 1 1 2 4
Starosambir district 18 15-16 15 19
Stryi district 2 3 6 2
Turka district 20 20 20 15-16
Yavoriv district 16 4-5 18 13-14
With such efficiency of crop production in the study region, resource potential should be increased, previously unused land should be involved in production, focus on the most profitable subsectors, but do not forget to diversify production to insure unforeseen situations.
Positive results of the analysis of economic potential and competitiveness of agricultural enterprises of the region provided a general picture of the state of the industry, but to form a specific strategy requires more data, which we decided to obtain through SWOT-analysis (Table 2).
Among the main strengths of the development of the crop industry of the region should be noted the favorable geographical location, proximity to the EU in particular, the functioning of powerful agricultural producers, high efficiency of production. Weaknesses include poor investment promotion, low agricultural image, outdated logistics and environmental impact.
However, the region has significant opportunities, including entering new markets, including EU markets through the benefits of association with the EU, the production of environmentally friendly products, as well as creating an investment climate that investors want to invest in industry (Table 3).
Table 2
COMPARATIVE ADVANTAGES
Strengths Opportunities
Favorable geographical location and logistics connection of the district, proximity to the border with the EU. Participation in grants and cooperation with international donors on investment in agriculture.
Temperate climate with fertile soils. Continuation of processes on European integration, search for foreign partners and investors in the agro-industrial complex.
Developed transport infrastructure. Providing a favorable local investment climate for the external investor.
The policy of local authorities is aimed at supporting small and medium-sized businesses, a set course to attract investment and create the necessary conditions for this. The initial additional markets, both domestic and foreign.
The presence of several large agricultural enterprises with a strong material and technical base. Taking advantage of the district's policy to support small and medium-sized businesses.
High rating of the region in the production of crop products. Production of environmentally friendly crop products.
High quality products, crop yields. Use of innovations in the field of agricultural production and various scientific achievements.
The process of creating an industrial park has begun, which is an opportunity for local producers to acquire technologies in agriculture.
Comparative advantages of crop production development in agricultural enterprises of the studied area
Along with the opportunities there are threats: unstable political situation, economy, unfavorable macroeco-nomic situation, as well as a pandemic.
Table 3
The list of factors that can affect the efficiency of crop production in agricultural enterprises of the region
Sphere of existence Weak signals of changes in the external environment that may directly or indirectly affect the functioning of enterprises in the crop sector
Natural component Global trends in climate change Population growth The objective existence of the law of growth of needs Geographical location that dictates its conditions of management Labor migration
Technology market Emergence of the latest technologies in the field of agriculture Competitors use the latest technologies in agriculture
Foreign policy Aggressive quota, duty, ban Investment Pressure of strong countries
Public policy Land Market Law №2178-10 Tax burden Program "Available loans 5.7.9%" Customs regulation Price control Grant policy Infrastructure Inflation
Competitors Active growth of competitors in the industry Aggressive strategy of a competitor relative to another competitor
Economic situation Exchange rate Credit rates Demand and supply of goods
Conclusions. The analysis of economic potential and rating of agricultural enterprises in terms of administrative districts of the region according to the level of development of the crop industry, as well as the SWOT analysis provided an opportunity to form a strategy for the development of the crop industry. Therefore, the development strategy contains the following main points: maintaining the achieved level of efficiency of crop production in the region; intensification of the crop industry (new technologies, digitalization, innovations, restructuring, business reengineering); development of material and technical base of agricultural enterprises through the use of experience of advanced enterprises of the region (leasing, international cooperation, consultations, etc.); greening of production; use by local farms of the mechanism of cooperation with local self-government bodies, local organizations, international organizations, etc. It should be noted that an important factor in the success of this crop development strategy
is decentralization, which in its course should be the center of accumulation of decisions on agricultural development by creating platforms for discussions, local management decisions and more.
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