RESULT OF STUDY

The sphere of agrarian production is characterized by certain factors influencing on activity of the enterprises of agroindustrial complex at the regional level. The main ones are the demand for agrarian products and raw materials in the domestic and foreign markets, the mechanism of pricing, the presence or absence of state support for agricultural producers, the degree of concentration of production and its specialization, the level of development of market infrastructure, etc.

The problem of organizing the efficient production of agricultural products and raw materials in Ukraine is that, during the time of the administrative management of the economy, the task of creating a market environment with its laws of value, the balance of supply and demand, and competition simply was not raised. At the present stage, there are problems with the effective formation and use of resources in the production of products. Thus, the main means of the enterprises of agroindustrial complex of the Poltava region have a high degree of depreciation, the majority of economic entities are not able to provide an update of the technical-technological basis of production through financial and credit mechanisms, the increase in prices of crop materials and fuels and lubricants leads to an increase in the cost of production and sales of agricultural products at non-compliance with government procurement prices. The management system of the enterprises of agroindustrial complex of the Poltava region requires the improvement and reorganization of the organizational structure, and the personnel – continuous improvement of professional skills. The financial assets of economic entities in the agrarian sector of the region are limited because of the lack of own working capital and the inability to access credit resources, etc.

We will conduct a study of the economic indicators of activity the enterprises of agroindustrial complex of the Poltava region as a plant, and livestock sub complex, using the official statistics.

The pace of agricultural production changes in the enterprises of agroindustrial complexes of the Poltava region is shown in Table 3.5.

Based on the data presented in the table, in 2018, the production of the enterprises of agroindustrial complex of the Poltava region decreased by 13.5% compared to 2017. There is a significant reduction of production volumes by agricultural enterprises of the region – by 32.8%, respectively, but the production of agrarian production by households for the same period increased by 7.9%. From 2015 to 2017,

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Table 3.5 Indices of agricultural production of the enterprises of

agroindustrial complex of the Poltava region for 2015-2018 [1]

Economic entities 2015 2016 2017 2018

agricultural enterprises 105,1 109,2 127,3 94,5 -32,8

households 102,3 95,7 98,3 106,2 7,9

we have a positive dynamics of the volume of production of agricultural enterprises in the oblast and a decrease in households.

The dynamics of the volume of production of main crops by the enterprises of agroindustrial complex of the Poltava region is presented in Table 3.6.

Table 3.6 Dynamics of volumes production of main agricultural crops by enterprises of agroindustrial complex of Poltava region for

2016-2018 [1]

(thousand quintals)

Types of

agricultural crops 2016 2017 2018

Rate of

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region by 33.6% in comparison with 2016, and in 2017 they decreased by 15.5%.

Growing of sugar beet by the entities of agrarian sphere at the Poltava region in 2018 decreased by 5.4% and 23.1% in accordance to 2016 and 2017. During the investigated period, the growth of sunflower by the enterprises of agroindustrial complex of the Poltava region was a positive trend. Thus, in 2018, the volume of cultivation of this culture increased by 39.6% compared to 2016 and by 5.7% compared to 2017.

In 2018, potato growing by agricultural enterprises of the region increased by 1.2% compared to 2016 and decreased by 0.9% against the volume in 2017. The positive dynamics of growth in crop growing is observed in vegetables (in 2018, the volume of cultivation increased by 7.1% compared to 2016 and by 13.3% relative to 2017), fruits and berries (respectively 98.2% and 76.2%).

Thus, it can be argued that the enterprises of agroindustrial complex of the Poltava region achieved a positive dynamics in the volume of activity of such crops as sunflower, vegetables, fruits and berries.

Reducing the volumes of other crops was negatively affected by the structure of production activity and the final financial result of the economic entities of the Poltava region.

The dynamics of the sown area of the main agricultural crops of the enterprises of agricultural complex of the Poltava region is presented in Table 3.7.

Table 3.7 Dynamics of sown areas of main agricultural crops of the enterprises of agroindustrial complexes of Poltava region for

2016-2018 [1]

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Based on the data presented in the table, in 2018, compared to 2016, the area under cultivation of grain crops (by 2,2%), sunflower (by 28,0%), vegetables (by 1,9%), but decreased on sugar beet (by 23.7%) and fodder crops (by 7.7%). In 2018, relative to 2017, the dynamics of crop area for agricultural crops changed, namely: the area under grain crops (by 2.8%), potatoes (by 0.6%), and vegetables (by 0.9%) decreased; sunflower seed crops (by 2.8%) and fodder crops (by 0.2%).

Describing the overall size of the sown area of the enterprises of agroindustrial complexes of the Poltava region, it should be noted that most of them are allocated to the cultivation of grain crops and sunflower. In 2018 compared to 2017, the yield of sunflower seeds (by 3.2%), vegetables (by 14.5%), fruits and berries (by 76.9%) increased;

declined – grain crops (by 13.3%) and sugar beet (by 11.4%).

There were also changes in the animal husbandry complex of the enterprises of agroindustrial complexes of the Poltava region. The dynamics of livestock and poultry population of the enterprises of agroindustrial complex in the Poltava region is presented in Table 3.8.

Table 3.8 The dynamics of livestock and poultry population at the enterprises

of agroindustrial complexes of Poltava region for 2016-2018 [1]

(thousand heads) Types of animals 2016 2017 2018

Rate of change, 2018-2016, %

Rate of change, 2018-2017, %

Cattle, total 310,2 294,0 282,5 91,1 96,1

including:

cows 157,1 147,5 142,3 90,6 96,5

Pigs 331,3 294,0 364,6 110,1 124,0

Sheep and goats 44,6 43,2 43,9 98,4 101,6

Poultry 5477,2 5434,6 5179,3 94,6 95,3

Based on the data presented in the table, in 2018, the number of cattle at the enterprises of agroindustrial complex of the Poltava region decreased by 8.9% compared to 2016 and by 3.9% compared to 2017.

The positive dynamics of the growth of the population is traced pigs:

in 2018 their number increased by 10.1% compared to 2016 and by 24.0% compared to 2017. In 2018, the number of sheep and goats in the enterprises of agroindustrial complex of the Poltava region decreased by

148 enterprises of agroindustrial complex of the Poltava region is presented in Table 3.9

Table 3.9 Dynamics of the volume of production the basic livestock products

by the enterprises of agroindustrial complex of Poltava region for 2016-2018 [1] production, enterprises of agroindustrial complex of the Poltava region have a decrease of 17.9% compared to 2016 and an increase of 2.0%

compared to 2018.

In 2018, the volumes of milk yield on the enterprises of agroindustrial complex of the Poltava region increased by 5.4%

compared to 2016 and by 9.5% in comparison with 2017. Similarly, the volume of egg production is similar (in 2018, it increased by 11.3%

comparatively from 2016 and by 14.9% compared to 2017). A positive trend is shown by the volume of wool production: from 15.0 tons in 2016 to 21.1 tons in 2018.

Taking into account the production volumes of the plant and animal husbandry complex of the enterprises of agroindustrial complex of the Poltava region, it is also important to study the average prices of agricultural products sales (Table 3.10).

Based on the data presented in the table, we see changes in the dynamics of average prices of agricultural products sold by the

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Table 3.10 Dynamics of average prices of sales of agricultural products by the

enterprises of agroindustrial complex of Poltava region for 2014-2018 [1]

enterprises of agroindustrial complexes of the Poltava region. Thus, the average prices of sales of grain and leguminous crops in 2018 decreased by 4.2% compared to 2016 and increased by 9.1% in comparison with 2017. A similar trend with average prices for sales of sunflower seeds:

in 2018, decreased by 6.1% compared to 2016 and increased by 30.6%

in comparison with 2017, there was a significant increase in the average prices of sales of sugar beets (respectively 74.2% and 45.1%), potatoes (52.2%, respectively) and 24.8%) and vegetables (2.8 times over the period under investigation). In 2018, in comparison with 2016, the average prices of cattle and poultry (by 69.1%) and milk and dairy products (by 6.6%) increased, while in 2017 the decrease was 6.6% and 9.4%. Average selling prices for eggs in 2018 increased by 46.6%

compared to 2016 and by 3.2% compared to 2017.

In modern conditions, the study of the economic relations of the enterprises of agroindustrial complex is of great importance. Under economic relations we understand the system of economic relations between enterprises of agroindustrial complex regarding the appropriation and restoration of land, production assets, labor,

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manufactured goods and other entities of the market environment (state, resource suppliers, consumers of finished goods, financial and scientific-educational organizations etc). Economic relations of the enterprises of agroindustrial complex cover the stages of production, distribution, exchange and consumption of agricultural raw materials and products; is an organizational-management system in the process of agricultural production, its procurement, transportation, storage, processing and sale, as well as the production of material-technical resources for agriculture and other branches of agroindustrial complex, their production and social services.

Characteristic peculiarities of economic relations of the enterprises of agroindustrial complex, including the economic entities of agrarian sphere of the Poltava region at the present stage are as follows:

functioning of large collective farms with collective-partial ownership of land and means of production;

lack of sufficient private ownership of land by owners and employers who use large amounts of hired labor;

creation and cooperation of peasant farms and the formation on this basis of production agricultural cooperatives, joint-stock companies;

functioning of state enterprises in agriculture (seed, educational-research enterprises);

presence of a personal auxiliary farm workers cooperatives, joint-stock companies, state-owned agricultural enterprises;

development of horticulture and gardening of inhabitants of cities and working villages, etc.

Economic relations between enterprises of agroindustrial complex and the state are carried out through state regulation.

Taking into account the current state of production and economic relations of the enterprises of agroindustrial complex of the Poltava region, we proposed an organizational-economic mechanism for improving the economic activity of the entities of the agrarian sector, which is based on the complex development of the resource potential of agricultural enterprises of the region and its effective use, adaptation of economic entities to market environment and ensuring the competitiveness of products in the markets. The scheme of the proposed mechanism may have the following form (Figure 3.2).

The implementation of organizational measures should be based on the introduction of scientifically forms of organization of production, advanced technology and innovative technologies; rationalizing management; ensuring of entrepreneurial initiative; organization market

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Figure 3.2 Organizational-economic mechanism of improvement economic activity of the enterprises of agroindustrial complex of Poltava region

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researches of commodity markets; ecologization of production of agricultural products, etc.

In economic measures it is extremely important to improve the mechanism of economic relations both in the inter-branch and in-industry sectors, which will ensure compliance with the law of value in the formation of pricing policies, take into account the timing of capital turnover in the sectors of the national economy in the formation of credit and tax systems; competitiveness of products; protection of the domestic commodity producer; regulation of import-export food commodity flows.

CONCLUSIONS

Consequently, the research of current state of production and economic relations of the enterprises of agroindustrial complex of the Poltava region shows the changes in the volumes of activity of the entities agrarian sphere caused by the market situation. Economic relations in the agroindustrial complex of Ukraine have an unstable nature of the interaction between agricultural production entities and other contracting parties, including government bodies of different levels of government. The proposed organizational-economic mechanism of improvement of economic activity and economic relations of the enterprises of agroindustrial complex of Poltava region should provide development of infrastructure of economic entities of agrarian sphere through organizing measures on market-oriented principles of management of production activities and economic directions in order to increase the efficiency of formation and use of resource potential, development ways to improve financial-credit relations and investment activity, and so on regulation of foreign economic activity on the market of agricultural products.

References:

1. Agriculture. Statistical Yearbook of the Poltava region. – Available at:

http://www.pl.ukrstat.gov.ua

2. Bezpartochnyi M., Britchenko I., Bezpartochna O., Mikhel V. Economic diagnostics as a tool for transformation of organizational-legal forms of economic activity in the field of agriculture. Management mechanisms and development strategies of economic entities in conditions of institutional transformations of the global environment: collective monograph / edited by M. Bezpartochnyi. ISMA University. Riga:

«Landmark» SIA, 2019. Vol. 1. Р. 259–269.

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3. Bezpartochna O. Use of economic diagnostics for innovative ensuring of the economic process of agroindustrial enterprises // Механізми та стратегії розвитку господарюючих суб‘єктів в умовах

інтеграційних процесів: матеріали науково-практичної INTERNET-конференціяї студентів та молодих вчених з

міжнародною участю (м. Харків – Пшеворськ, 19 лютого 2019 р.) / Національний аерокосмічний університет імені М. Є.

Жуковського ―Харківський авіаційний інститут‖, Wyższa Szkoła Społeczno-Gospodarcza w Przeworsku. – Przeworsk: WSSG, 2019. – pp. 143-146.

Kuranovic Veslav Vilnius Gediminas Technical University (Vilnius, Lithuania)

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