Food market of ukraine: risks and new possibilities in the context of european integration
Mudrak R.P., Doctor of Economics, , Uman National University of Horticulture
Випуск №85. Частина 2
The major risks are from the setting-up of the free-trade zone Ukraine-EU:
1) curtailing of the trading of diary and meat products of household production at organized markets. The solution of this problem should be found in the founding of certificated slaughterhouses in rural area on the co-op. The providing of credits according to state insurance arrangements for building of slaughterhouses for household owners who buy cattle for further slaughtering and selling of meat at organized markets.
2) partial or the complete loss of product market in countries of Custom union due to increasing of custom rates from zero tariffs to those which are fixed in agreements about the accession to the ITR, as well as through the use of more complex bureaucratic customs procedures. In the short term – it will cause a decrease in the volume of Ukrainian foreign trade of agricultural products. Neutralization of this risk can be achieved through several activities:
a) the diversification of markets due to growing markets in Africa and Asia;
b) improving of the investment climate;
c) the development of the domestic consumer market.
The advantages of creating deep free-trade zone Ukraine-EU:
1) the increase of accessing of public to food of better quality, the stability of consumer food prices;
2) the expand of accessing of Ukrainian products to the EU market, the increase of agricultural production;
3) the reduction of the potential of unfair competition against the Ukrainian producers from the European ones;
4) the increasing of investment attractiveness of Ukrainian agrarian sector, the possibility of development of long-term plans;
5) the increasing of incomes by creating new jobs;
6) the increasing of investments from European and international financial institutions, reducing the cost of credit resources;
7) the increasing of the number of small and medium-sized businesses, including the ones in the agricultural sector.