Uman NUH | today: 12/21/2024
| Author(s) | Грабек Я. А., , , | ||
|---|---|---|---|
| Category | Economics | ||
| year | 2024 | issue | Issue 105 part 2 |
| pages | 41-51 | index UDK | 338.45(477):338.23:338.439.4 | DOI | 10.32782/2415-8240-2024-105-2-41-51 (Link) |
| Abstract | The processing industry plays a decisive role in the formation of the internal value chain, which is the only way to maximize value added in the agrarian sector of Ukraine's economy. It is at the stage of industrial processing of agricultural raw materials and manufacturing of finished products that the lion's share of the agrarian sector's added value is completed. It is the trade in semi-finished and ready-to-eat products on the foreign market that maximizes national income and improves the terms of trade. Given that exports of agrarian products currently account for almost half of Ukraine's foreign exchange earnings, the full development of Ukraine's processing industry is an important condition for the sustainability of the national economy during martial law and its recovery in the postwar period. Despite the positive overall production dynamics in the processing industry, there has been a decline in this sector, with output more than doubling in 2000–2022, with an average annual growth rate of +3.2 %. However, such an increase was generated in 2000–2007, when the output in each reporting year was higher than in the previous one. Ukraine's processing industry is currently experiencing a decline in production amid high levels of uncertainty. The main reasons for the decline are: – low level of domestic demand; – low share of Ukrainian processing companies' products on the world market, mainly due to difficulties in accessing retail markets in highly developed countries and non-compliance with international sanitary and hygienic requirements; – reduced or insufficient production of agricultural raw materials such as milk, berries, fruits and grapes, etc.; – russian military aggression. In the analyzed period, only 4 food industry sectors showed an increase in output: 1) production of meat and meat products; 2) production of canned fish, crustaceans and shellfish; 3) production of oils and fats; and 4) production of tea and coffee. The biggest constraint on the production of meat and dairy products is the limited sales markets. | ||
| Key words | processing industry, added value, value chain, recession, domestic demand, global market, quality, raw materials, russian aggression | ||