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Development of rural areas and country’s food security

Author(s) Mudrak R.P., Doctor of Economics, , Uman National University of Horticulture
Category Economics
year 2019 issue Issue 94. Part 2
pages 131-140 index UDK 711.437/.438:338.439-049.5(477)
DOI 10.31395/2415-8240-2019-94-2-131-140 (Link)
Abstract Transformational changes in the agrarian sector of economy exert an unprecedented influence on the functioning and development of rural areas. A considerable part of transformations is not fully understood, which makes it difficult to forecast the development of not only agricultural production, but also of food sub-complex as well as a national food market as a whole. The main part of resource potential of Ukrainian agrarian sector is concentrated in the rural areas. Therefore, the ways of the optimal development of rural areas, the ways of the most complete and effective use of its resource potential have been the most relevant directions of scientific research. The aim of the research is to establish the link between the development of rural areas and food security of the state. Methodological and theoretical background of the research is economic theory, studies of Ukrainian and foreign scholars on the agrarian subject matters, etc. The following methods were used in the research: abstract-logical method, empirical method, time series analysis and mean-value method. Agricultural production is a dominant sphere of using resource potential of rural areas of Ukraine. The link between the development of rural areas and country’s food security lies in the fact that, sufficient volumes of production of agricultural food raw materials is a fundamental principle of physical availability of food and the condition of the protection of food interests of domestic households. The link between rural areas and food security of the country depends on the category of agrarian producers. Large agricultural enterprises link their business strategy with the expanding their share due to the foreign markets, while medium and small agricultural producers are oriented to domestic market. It especially refers to private households. To preserve the economy of private agricultural households and to protect the consumer rights for secure and high-quality food it is necessary to provide agrarian households with small-size milking machines and refrigerating equipment, to encourage the development of cooperative associations of small agrarian business entities, to bring into force prohibitive rules, that are meant to provide security and quality of food.
Key words food security, rural areas, resource potential, food supply, domestic market, private households
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