Prospects of development of the Ukrainian agricultural sector under conditions of globalization challenges

1. PROSPECTS OF DEVELOPMENT OF THE UKRAINIAN AGRICULTURAL SECTOR UNDER CONDITIONS OF GLOBALIZATION CHALLENGES

2. THE MISSION OF UKRAINIAN AGRICULTURE

Prepared by
George Ryabtsun

3.

100 mln tons
Wealthy Ukraine

4. Quantity or quality?

Example: Export of honey
Exporters
Quantity (tons)
Exporters
Value (mln USD)
China
128 330
China
276,560
Argentina
81 183
New Zealand
206,676
Ukraine
54 392
Argentina
168,868
Viet Nam
42 283
Germany
144,868
India
35 793
Sierra Leone
142,438
Mexico
29 098
Spain
109,019
Spain
26 874
Ukraine
108,237

5. Global Food Security Index 2016(The Economist) Statistics for Europe group (26 countries)

TOP 10 SCORES
BOTTOM 10 SCORES
1
Ireland
84,3
17
Poland
72,4
2
Netherlands
82,6
18
Greece
71,5
=3
France
82,5
19
Hungary
69,3
=3
Germany
82,5
20
Slovakia
67,7
5
United Kingdom
81,9
21
Romania
65,5
6
Sweden
81,3
22
Belarus
63,1
7
Norway
81,0
23
Russia
62,3
8
Switzerland
80,9
24
Bulgaria
60,6
=9
Denmark
80,0
25
Serbia
59,4
=9
Portugal
80,0
26
Ukraine
55,2

6. Statistics for All countries group (113 countries)

Rank
Country
Score /100
=57
Vietnam
57.1
=60
Jordan
56.9
=60
Venezuela
56.9
62
Morocco
55.5
63
Ukraine
55.2
64
Dominican Republic
55.1
65
Sri Lanka
54.8
66
Algeria
54.3
67
Paraguay
54.2

7. Global Food Security Index (components)

Score / 100
UKRAINE
Rank / 113
2012 2013 2014 2015 2016
2012 2013 2014 2015
2016
OVERALL SCORE
57,8
57,6
56,6
54,4
55,2
53
=53
=54
64
63
Affordability
57,0
57,4
57,6
57,1
57,2
53
53
56
57
58
Availability
55,6
55,2
52,4
48,7
49,6
=57
=59
66
79
79
Quality and safety 65,4
64,7
65,6
63,0
65,1
45
46
46
48
47

8. How the mission will help us to deal with these challenges?

Let’s consider a few examples.

9. USA. USDA REE Action Plan 2014

Main aim is transition to the sustainable
development of agriculture which defined as
(1) producing enough to satisfy human needs,
(2) enhancing environmental quality and
protecting the natural resource base,
(3) being profitable, and
(4) increasing the quality of life for farmers,
farm workers, and society as a whole.

10. Germany. The Policy Strategy – Bioeconomy

Major challenges:
• providing enough food and healthy
food for a growing global population,
• climate change,
• the loss of soil fertility and biodiversity.
The “bio-based economy”, offers the
opportunity both to make an important
contribution to mastering these
challenges and simultaneously to advance
the transition from an fossil-based
economy to an economy based on
renewable resources.

11. Green Paper on Food, Nutrition, Agriculture and Rural Areas

The purpose of this program is the beginning of a discussion about
planning the future development of the German agribusiness and rural
areas.
The goal is to have an agricultural sector that takes on responsibility
for animals and the environment and at the same time seizes its
economic opportunities.

12. Ukraine. Single and Comprehensive Strategy and Action Plan for Agriculture and Rural Development in Ukraine for 2015-2020

The overall objective is to increase agricultural competitiveness and
food security, and to promote rural development in a sustainable
manner in line with EU and international standards.
Ukraine will develop a competitive, export-oriented agriculture
sector; an agri-processing industry will produce competitive food
products corresponding to international safety and quality standards.

13. To sum up

The USA and Germany, have a clear vision of the mission of
agriculture and rural territories.
The Ukrainian strategy reflects the medium-term directions of
development, which weakly interact.
There is no vision of a holistic system of agriculture and rural areas
in the context of social and economic relations.
The current situation indicates that the agricultural sector develops
in the stochastic direction.

14. Mission Statement

The mission of Ukrainian agriculture is formation of such industry,
which as a part of a whole national economic system would ensure full
implementation of the interests of the state and the Ukrainian nation.
Therefore, the first step is to outline the general borders of social
responsibility of an agriculture. Such borders will be an objective tool
during the discussion regarding the interaction of specific elements of a
unitary economic system.