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Current status and characteristics of the agricultural sector of Ukraine's economy in terms of European integration
The article deals with the problems of the domestic agricultural sector and measures to enhance the integration processes which are able positively influence the solution of these problems. It is found that the instability of agricultural development is a key issue of Ukraine's economy. There are still negative tendencies toward investment attractiveness of the agricultural sector, certification and low competitiveness of agricultural, raw orientation of exports. The complexity of the situation compounded by acute social and political crisis and military conflict in the Donbass. Under the conditions of uncertainty of agrarian sphere it has become urgent to analyze and develop trends of integration processes.
The objective and the task of the work is to assess the current state of the agricultural sector, processing of statistical data to establish disparities for the agricultural production, analysis of key acquisitions that Ukraine has from European Integration, setting trends of the agricultural sector in terms of cooperation with the EU.
The materials of the research were scientific works of domestic and foreign scientists, article publications concerning the problems of imbalance functioning of the agricultural sector, the benefits of integration of Ukraine into the European Economic Area, state cooperation of agrarian sector of Ukraine's economy with the EU partners.
It is found that provided strengthening integration processes in Ukraine the experience of the agricultural land market in the EU should be taken into account. Firstly, it is cadastral assessment and inventory of agricultural land. Secondly, the settlement procedure for the use of land by foreigners, monitor compliance with the order of intended use of agricultural land. Thirdly, the regulation process limits the concentration of agricultural land in the hands of one owner. It is revealed that the branch structure of agricultural production is characterized by significant imbalances. The share of animal husbandry in the structure of gross agricultural output in 2015 was only 29.7 %. This imbalance adversely affects the efficient functioning of agrarian sphere, causes shortage of animal products and its imports from abroad, restricts the production of organic fertilizers and soil fertility restoration. As a result, the share of forage crops in the structure of gross agricultural production was in 2015 only 1.6 %.
The study revealed the niche nature and low efficiency of entry of domestic producers in the agricultural market of the EU, which has several explanations: lack of quality Ukrainian food in compare to European standards, differences in approaches to certification and safety of food products, high bureaucracy and corruption in the custom bodies of Ukraine significant amounts contraband flows displace legal export quality.
Recommendations to improve the efficiency of the agricultural sector of Ukraine's economy:
- improvement the institutional framework regulating land relations of cadastral valuation and inventory of agricultural land in compliance with their intended use;
- development of software support technical and technological modernization of the agricultural sector entities, primarily farm livestock sector, using innovation and leasing at the expense of investors, state and local budgets;
- an information campaign to popularize the strengths and competitive advantages of agrarian regions of Ukraine, development of investment passports of appealing to a specific region sectors, providing clarification to potential foreign investors peculiarities of running business;
- providing economic incentives to create farms on the basis of a high level of marketability and access to foreign markets and wholesale sales;
- approximation of national agricultural legislation with the requirements and provisions of the common agricultural policy of the EU, both in terms of the functioning of the agricultural market and improving food safety certification with the coordination of regulations to the requirements of ISO;
- facilitate access of producers of agricultural products to enter the EU market by simplifying procedures for their certification, eliminate bureaucracy at the customs clearance of goods, expanding agricultural export in excess of the tariff quotas under the "Agreement on Association between Ukraine and the European Union".
Key words: agrarian sector, integration processes, land market, the export of agricultural products, the efficiency of the agricultural sector, the European Union, European integration.
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