DETERMINATION OF POTENTIAL OPPORTUNITIES FOR THE FOOD PROVISION WITH GRAIN PRODUCTION: A UKRAINIAN AND EUROPEAN VIEWPOINT

Abstract

The purpose of the paper is to determine the potential of the food provision of the Sumy region. The agricultural production in the region is not just a complex of the industries, developing independently from each other, but the rational and systematic combination of all elements and factors of production under certain specific natural and economic conditions, the interrelated development of various branches of agriculture, first and foremost, the rational combination of scientifically grounded systems of farming and livestock, the optimal combination of which lies in their rational interconnection. What is important to notice is that between the volumes of agricultural production and food consumption in the agro-industrial countries, there is a direct relationship with the total amount of consumption, because the manufacturers of this production and most of its consumers are the same individuals. Along with this, the main problems, which may occur in the growth of production volume in the agri-food complex of the transition economy, could be: the low purchasing power of the population and insufficient level of the development of product promotion infrastructure. Having regard to the principles of agricultural location, and in view of a range of the above problems, in our opinion, it stands to reason that the issue of the region self-provision with the main types of production, which should be affordable to the average consumer, i.e. be solvent in effective demand, is the most pressing. It is essential to put emphasis on the fact that the theoretical and practical aspects of the formation of the regional food policy and the market strategy of their development, the motivational potential of their existence in the market economy environment require further research. The methodology of the study. When conducting this research, we used the statistical records of Sumy Region for the last 3 years and the statistical records of EU-28 for the last year (Derzhavnyi komitet statystyky Ukrainy. Holovne upravlinnia statystyky v Sumskii oblasti, 2016, Silske hospodarstvo Ukrainy u 2016 rotsi, 2017, Agricultural statistics of EU-28, 2017). The regression and index analyses for the development and calculation of the integrated factor of agricultural land adjustment have been used as well. Results. After conducting the research, we have determined that the solution to the problem of food provision of Ukraine and Sumy Region and of EU-28 and Estonia, Latvia, Lithuania, in particular, is to increase the efficiency of agricultural land use. Taking the abovementioned into consideration, we consider it appropriate to transfer unused arable land to the full-fledged private and owner-operated farms, and private households. However, the large agricultural enterprises in the coming years should seek to play a more significant role in addressing the problems of food provision of the region, especially in a grain crop. Practical use. The results of the conducted research will help reallocate land plots among agricultural enterprises of different forms of ownership for their more efficient use and improve food security in the region after the proper implementation of the land reforms. In view of the foregoing, there is a need for the state regulation of the grain market and support for grain sales prices. This necessitates the objective assessment of the potential opportunities on the regional scale for Ukraine and Europe.