Uman NUH | today: 09/08/2019

Diversification of production as a direction of sustainable development of agricultural enterprises

Author(s) Lemeshchenko N.M., postgraduate, , Uman National University of Horticulture, Ukraine
Burlyay A.L., Candidate of Economics, , Uman National University of Horticulture, Ukraine
Burlyay A.P., Candidate of Economics, , Uman National University of Horticulture, Ukraine
Category Economics
year 2018 issue Випуск №93. Частина 2
pages 114-131 index UDK 332.1: 620.9
DOI 10.31395/2415-8240-2018-93-2-114-130 (Link)
Abstract The basic component of the sustainable development of agrarian production is economic development. The conducted researches show that despite the considerable potential and existing traditions of agriculture, we can state the insufficient level of development of the industry. The prospects for agriculture in the region are undoubtedly related to the introduction of mechanisms for diversification of agricultural production. One direction of the diversification is the production of energy from biomass of agricultural crops, which, in addition to the energy effect, has economic and social significance. The theoretical and methodological basis of the research is the dialectical theory of cognition and systematic approach to the study of economical phenomena and processes, the theoretical principles of Ukrainian and foreign scientists on selected issues. Scientific researches were carried out by using such methods as: economic analysis, comparative, balance, monographic, statistical groupings, averages values, etc. The analysis shows that the energy potential of agricultural biomass in agricultural enterprises of the Cherkasy region in 2015 amounted to 1462.7 thousand tons of conditional fuel (c.f.), which is on 61% more than the same indicator in 2010. According to the data of the Central Statistical Office in Cherkassy region, in 2016, 3401.7 thousand tons of conditional fuel (c.f.) was consumed. Thus, by using the energetical potential of biomass of agricultural crops of agrarian enterprises we can replace 43% of the volume of non-renewable energy sources, which will have not only ecological effect, but also economic and social. The economic potential of biomass of agricultural crops (straw and plant residues) in agricultural enterprises of Cherkasy region in 2015 amounted to 355221.1 thousand USD, and accordingly in 2010 -220996.23 thousand USD. It is estimated that in 2020 it will be received 2102.5 tons of c.f. energy potential of biomass of agricultural crops and 510598.4 thousand USD of economic potential. Thus, diversification of agricultural enterprises in the direction of production and the use of energy from biomass of agricultural crops is an important direction of sustainable development of Ukraine. Among the main positive effects are the following: - improvement of the fuel balance of the region and reducing the cost of purchasing and delivery of energy resources; - reduction of energy dependence of agricultural enterprises; - preservation of the environment; - development of the economy of enterprises and regional economy. In addition, the use of biomass of agricultural crops (straw, residues, waste) also has a social effect, which manifests itself in the diversification of the rural economy; creation of new organizational structures and workplaces; the development of the rural territories; improving the public health; ensuring welfare and improving the quality of life of the rural population. Consumption of agricultural biomass can meet its own energy needs of agricultural enterprises in order to reduce the cost of purchasing energy, thereby contributing to the increase of the competitiveness of agricultural enterprises.
Key words sustainable development of enterprises, diversification, bioenergetics, biomass, energy potential, economic potential.
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