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The components of the reproduction process of agricultural production in the face of uncertainty and risk
Reproduction in agriculture is a part of social reproduction and it is the process of production and services, which is constantly reproduced capital goods, consumer goods, services, labor and industrial relations. We offer precise definition of this concept with regard to specific study area and understand agriculture reproductionas a permanent process of manufacturing products of plant and animal origin in order to provide the population with food and reception of raw materials to meet the needs of various industries, and recovery resources for this purpose, which will ultimately ensure a high level of food security.
The main stages or components of the reproduction process of agricultural production are: production of certain material goods, their distribution, exchange and consumption of agricultural products (private and industrial).The structure of the reproduction process in agriculture also can be represented as a set of five components such as playback of production, reproduction labor; playback economic and industrial relations; restoration of natural resources and the human environment, reproduction of production results.
For normalization of reproduction in US agriculture was introduced mechanism allowing to guarantee at government level the return to creditors farmers debt and raised the price of agricultural products. In China and Vietnam price and trade liberalization of agricultural products received a positive effect, and in Hungary, the Czech Republic, Romania and Albania the privatization made possible the expanded reproduction in agriculture.
The current stage of playing agricultural production takes place in conditions of uncertainty and risk. A strong influence on his condition now do the war, the occupation of territories, destruction of partnership and economic relations between the regions, inflation fluctuations, devaluation of the national currency, the financial instability in the banking system, social tension, and so on. The most significant modern threats to all components of the reproduction process in agriculture of Ukraine make unstable financial and credit farmers support and political instability; unresolved land rights and a low level of its protection; high dependence on natural factors and low innovation in agricultural production; ineffective regulation of terms of trade; low wages and a significant stratification of the population by income level; the lack of an effective system of quality control of food.
Analytical data allow to conclude that it was the decrease in the production of a number of agricultural products, including milk (1%), meat (decrease herd of sheep and goats made 8.6%, poultry - 3.3%, pigs - 5.3%, cattle - 11.7%), fruits and berries products (by 7.8%), rape (5.9%). Alarming fact is the reduce of the total sown area of crops by 1.2%. The ineffectiveness of certain farming areas indicated because of the decrease yield of sunflower (11.4%). Given the fact that all these negative changes have occurred for only one year, it can be argued that agriculture Ukraine in 2014 was characterized by the formation of narrowed type of reproduction.
Hopping devaluation of hryvnia and unpredictable and changing rates in the last eighteen months has caused a narrowing of the reproduction process in agriculture since it led to higher loan financial resources while reducing bank lending programs, and to increase the value of agricultural machinery and equipment of foreign manufacture, making them unavailable to domestic enterprises. Rising inflation has led to the impoverishment of the population, which is the main consumer of agricultural products and purchasing power which is a factor in consumption in the reproduction process.
One of the offers for streamlining the process of reproduction in Ukraine as simple, as an expanded on the basis of innovation and investment should be called expansion of public financial support that can be expressed in preferential loans, reducing the fiscal burden on the enterprises of agrarian sphere, providing government guarantees to potential agricultural entities investors and creditors, mitigating price policy for agricultural products.
Keywords: reproduction, agricultural production, threats, risks, exchange, distribution, consumption.
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