Uman NUH | today: 11/12/2022

Development of e-commerce in the agricultural sector of the Ukrainian economy

Author(s) Nesterchuk J. A., Doctor of Economic Sciences, Professor of Economics,
Соколюк С. Ю., , ,
Коротєєв М. А., , ,
Zharun E. V., PhD in Economics, , Uman National University of Horticulture
Tupchiy O.S., , , Uman National University of Horticulture
Соколюк К. Ю., , ,
Category Economics
year 2022 issue Issue number 100. Part 2
pages 299-310 index UDK 004.738.5:339
DOI 10.31395/2415-8240-2022-100-2-299-310 (Link)
Abstract The agricultural sector of the economy of Ukraine, despite the existing powerful potential, among other industries, is characterized by one of the lowest levels of use of information and communication technologies in business processes. Taking into account the characteristics of economic entities in the agricultural sector of the economy, the nature and characteristics of products, the scale of its production for specific agricultural producers, the use of various forms of e-commerce is proposed. Personal farms have the potential to engage in e-commerce, using electronic services of the C2C (Consumer-to-Consumer) format, that is, “consumer-to-consumer”. This form of e-commerce does not require significant investment and allows you to sell products even to those who are not business entities. E-commerce in B2C format (Business-to-Consumer), that is, "business-to-consumers", can be recommended primarily to micro and small agricultural enterprises, in particular family farms. Large agricultural producers can use this format as an additional marketing channel for their products. For the vast majority of agricultural enterprises, the only form of e-commerce development is the B2B (Business-to-Business) form. The most promising direction for the development of B2B e-commerce in the agricultural sector is the creation of online trading platforms or electronic exchanges. Among large agricultural holdings, such as Mironovsky Hliboproduct, Nibulon, LNZ and others, the use of corporate electronic trading platforms is widespread. For most agricultural enterprises, a promising direction for the development of e-commerce is the sale of products through electronic exchanges. Recently, a number of such online platforms have been created in Ukraine: “Ukrainian Commodity Exchange of Garlic and Onion”, electronic exchange for sales of animals and meat “Meattrade” and others. Unfortunately, in practice, trading volumes on these platforms turned out to be insignificant or trading was not carried out at all. Their functions today are most often reduced to the role of “bulletin boards”. Based on the results of the SWOT analysis, strengths and weaknesses were summarized and opportunities and threats for the development of electronic B2B commerce in the agrarian sector of the Ukrainian economy were identified. Among the strengths and opportunities should be highlighted the growing willingness to do business on the Internet, opportunities to promote agricultural products to new markets, including international ones, the possibility of reducing transaction costs and increasing the efficiency of supply and marketing activities.
Key words digitalization of the economy, e-commerce, electronic trading platform, electronic exchange, agricultural sector of the economy
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