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Transformation of the Ukrainian agrarian model in the context of accession to the EU Cover

Transformation of the Ukrainian agrarian model in the context of accession to the EU

Open Access
|Nov 2024

Figures & Tables

Figure 1.

Model of the agricultural system of Ukraine.
Source: Own study based on Marunyak et al. [2021].
Model of the agricultural system of Ukraine. Source: Own study based on Marunyak et al. [2021].

Number and area of agricultural producers according to the size of agricultural land in 2021

Size (ha)Private peasant householdsFarmsAgricultural enterprises
Thousands of pcs.Thousands hectarespcs.Thousands hectarespcs.Thousands hectares
Up to 13,066.64,785.8
1–5717.61,120.01,766.05.8
5–1082.4128.51,790.05.437.08.9
10–5054.985.711,632.0266.7711.024.9
50–1004,641.0323.0679.0159.5
100–5006,771.01,620.52,600.0669.8
500–1,0001,262.0897.71,966.01,416.4
1,000–5,000926.01,581.63,919.08,568.8
Over 5,000601.05,273.8
Total3,921.56,120.028,788.04,700.710,513.016,122.1

Strengths, weaknesses, opportunities, and threats of Ukraine’s agricultural system in the process of accession to the European Union

ParametersStrengthsWeaknesses
Agricultural potentialS1 – large area of agricultural land;W1 – high concentration of agricultural land used by agroholdings;
S2 – high soil fertility;W2 – deterioration of soil quality due to intensification of agricultural production (monoculture);
S3 – sufficient manpower;W3 – lack of sufficient means of production on small farms;
S4 – favorable natural and climatic conditions;W4 – increasing climate risk in agriculture as a result of global climate change;
Compliance of quality parameters and technology with EU regulationsS5 – implementation of approximately 70% of EU regulations in the agricultural sector of Ukraine *;W5 – lack of sufficient knowledge of farmers in the field of farming in accordance with EU regulations;
W6 – focus of agroholdings on maximizing profits;
W7 – high cost and reduced efficiency by implementing GAEC standards;
Access to sales marketsS6 – high demand on the internal market and established sales channels on external markets.W8 – loss of some export channels (Black Sea ports) and the associated increase in logistics costs and loss of part of the southeastern sales markets.
ParametersOpportunitiesThreats
DemandO1 – access to EU sales markets as an EU member;T1 – possible restrictions (transition periods) and production quotas;
CompetitivenessO2 – low cost of plant production and its high efficiency;T2 – possible expansion of food of animal origin from other EU countries to the Ukrainian market;
EU agricultural policyO3 – high level of support for small- and medium-sized agricultural producers in accordance with EU regulations;T3 – a powerful lobby of agroholdings in the parliament and government of Ukraine;
O4 – possibility of implementing investments and innovations in the agricultural sector;T4 – high cost of implementing environmental norms and standards in the agricultural sector;
O5 – improving soil quality and, as a result, repairing environmental damage;T5 – collapse of some agricultural producers who fail to implement EU regulations;
O6 – increasing the number of organic producers.T6 – increase in prices for groceries.

Matrix of relationships between the strengths and weaknesses of Ukraine’s agricultural system and its opportunities and threats in the process of accession to the EU

StrengthsSO strategiesST strategies
  • S1 – large area of agricultural land;

  • S2 – high soil fertility;

  • S3 – sufficient manpower;

  • S4 – favorable natural and climatic conditions;

O2 – low cost of plant production and its high efficiency;T1 – possible restrictions (transition periods) and production quotas;
S5 – implementation of approximately 70% of EU regulations in the agricultural sector of Ukraine;
  • O4 – possibility of implementing investments and innovations in the agricultural sector;

  • O5 – improving soil quality and, as a result, repairing environmental damage;

  • O6 – increasing the number of organic producers;

  • T3 – a powerful lobby of agroholdings in the parliament and government of Ukraine;

  • T4 – high cost of implementing environmental norms and standards in the agricultural sector;

  • T5 – collapse of some agricultural producers who fail to implement EU regulations;

S6 – high demand on the internal market and established sales channels on external markets;
  • O1 – access to EU sales markets as an EU member;

  • O3 – high level of support for small- and medium-sized agricultural producers in accordance with EU regulations;

  • T2 – possible expansion of food of animal origin from other EU countries to the Ukrainian market;

  • T6 – increase in prices for groceries;

WeaknessesWO-strategiesWT-strategies
  • W1 – high concentration of agricultural land used by agroholdings;

  • W2 – deterioration of soil quality due to intensification of agricultural production (monoculture);

  • W3 – lack of sufficient means of production on small farms;

  • W4 – increasing climate risk in agriculture as a result of global climate change;

  • W5 – lack of sufficient knowledge of farmers in the field of farming in accordance with EU regulations;

  • W6 – focus of agroholdings on maximizing profits;

  • W7 – high cost and reduced efficiency by implementing GAEC standards;

  • O2 – low cost of plant production and its high efficiency;

  • O5 – improving soil quality and, as a result, repairing environmental damage;

  • O3 – high level of support for small- and medium-sized agricultural producers in accordance with EU regulations;

  • O4 – possibility of implementing investments and innovations in the agricultural sector;

  • O6 – increasing the number of organic producers;

  • T3 – a powerful lobby of agroholdings in the parliament and government of Ukraine;

  • T5 – collapse of some agricultural producers who fail to implement EU regulations;

  • T2 – possible expansion of food of animal origin from other EU countries to the Ukrainian market;

  • T4 – high cost of implementing environmental norms and standards in the agricultural sector;

  • T6 – increase in prices for groceries;

  • T3 – a powerful lobby of agroholdings in the parliament and government of Ukraine;

W8 – loss of some export channels (Black Sea ports) and the associated increase in logistics costs and loss of part of the south-eastern sales markets.O1 – access to EU sales markets as an EU member.T1 – possible restrictions (transition periods) and production quotas.
DOI: https://doi.org/10.2478/ijme-2024-0037 | Journal eISSN: 2543-5361 | Journal ISSN: 2299-9701
Language: English
Page range: 161 - 173
Submitted on: Apr 22, 2024
Accepted on: Oct 8, 2024
Published on: Nov 25, 2024
Published by: Warsaw School of Economics
In partnership with: Paradigm Publishing Services
Publication frequency: 4 issues per year

© 2024 Yuliia Zolotnytska, published by Warsaw School of Economics
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.