Development of Ukrainian Agriculture Industry in Conditions of European Integration

Analyzing the state of business environment of Ukraine in comparison with other countries (according to Doing Business 2020 rating) revealed positive tendencies of its development. Ukraine ranks 64th out of 190 countries, which is 7 positions above 2019’s rating and 12 above 2018’s. State initiatives on environment and infrastructure development are analyzed, and the lack of a clear strategy in conditions of european integration and sufficient support for one of the most important and profitable branches of Ukrainian business – agro-industry, which is a basis for enhancing the country’s export potential, is detected.

The results of the Ukrainian agricultural trade in recent years are analyzed. In 2019 the industry’s share in exports was about 44 %. Exports of agricultural products from Ukraine amounted to $22.2 billion, which is 19 % more than in 2018 with such key products as corn, sunflower oil, wheat and rapeseed.

The EU’s significance as the key trading partner of Ukraine is ascertained. The establishment of the DCFTA in the framework of EU-Ukraine Association agreement will enable activation of agricultural export to the EU in the coming years, and a special program for competitiveness of small and medium enterprises (COSME) can help Ukrainian firms in their development and exporting.

The key challenges for the Ukrainian agro-industrial complex in 2020 are outlined: tensions in trade relations between the US and their largest partners, further complicating world agricultural trade; Brexit and its effects on the EU market; revitalization of regional and bilateral trade agreements against the background of WTO weakening; consumer megatrends (healthy eating, veganism, plant- based alternatives to animal protein in developed countries, and, instead, increasing consumption of animal protein in Africa and China); climate change and weather fluctuations, which are increasingly affecting the production and marketing of agricultural products; new principles of the EU’s Common Agricultural Policy (CAP) and the threat of environmental protectionism.

Two of the best in our opinion ways of development of the Ukrainian agriculture industry are proposed: the production of eco-products, which is gaining increasing popularity every year and is extremely profitable, as well as the creation of a service station for agricultural machinery maintenance.