Uman NUH | today: 07/26/2022

Increasing the competitiveness of agricultural producers and developing of the cooperation

Author(s) Mudrak R.P., Doctor of Economics, , Uman National University of Horticulture
Category Economics
year 2020 issue Issue number 97. Part 2
pages 187-198 index UDK 005.332.4:[338.432:631.115.8]
DOI 10.31395/2415-8240-2020-97-2-187-198 (Link)
Abstract One of the reasons for the insufficient level of competitiveness of domestic agricultural producers is the low level of economic culture. The problem is of a systemic nature, since it is not limited only to the operation of outdated technologies, morally and physically worn out equipment. The same goes for morally outdated management, organizational, marketing approaches, etc. This problem is most acute in the small-scale sector of agricultural producers. There are a large number of small-scale agricultural producers in Ukraine. Their characteristic feature is the use of low-intensity resource-intensive technologies. This makes them less competitive. The management and marketing of small-scale economic units is primitive. Their biggest problem is the excessive costs of material and technical supplies and the loss of part of the income in the sale of finished products. The reason is the unsatisfactory level of economic coordination at these stages of production. The uncontested form of increasing the competitive position of small-scale agricultural producers is the creation of service cooperatives. Their task is to ensure a significant improvement in the organization and management of material and technical supply and the promotion of their products in the market. The proliferation of service cooperatives is restrained by imperfect legislation, a weak material base and a shortage of resources, and a lack of qualified personnel. A positive step towards state stimulation of the development of the rural cooperative movement was the Resolution of the Cabinet of Ministers of Ukraine dated June 3, 2020, No. 447. The adopted amendments removed restrictions on the areas of activity of agricultural service cooperatives that can benefit from financial support and the mandatory number of members in it. The list of domestic machinery and equipment has also been expanded by eliminating the condition for their compliance with the list of domestic machinery and equipment for the agro-industrial complex, the cost of which is partially compensated by the state budget.
Key words competitiveness, agricultural producers, small forms, excessive costs, service cooperative
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