THE FORMATION OF THE DEVELOPMENT STRATEGY OF DOMESTIC SEED ENTERPRISES

Ivan CHERNIAVSKYI

Abstract


Introduction. In the last decade of Ukraine, as a result of competitive positions in the world market of agro-food activity, there is a common and market grain. Our country is a well-known exporter of cereals (wheat, barley, corn). Agrarians, who sell a wide variety and exposure of cereals, medium-sized maize is a priority crop, which is the leader for the crop (78.4 c / ha in 2018). According to the Seed Association of Ukraine, improving the population today can increase the high reliability of crops by up to 30%. Grain seed export volumes are at a rather low level, with Ukraine selling no more than 10-12 thousand tonnes of seeds annually. Developing export opportunities to enter the perspective markets of grain crops of other countries, including the European Union, domestic seed growers practically dumped in comparison with import purchase prices by reducing the price of own sale of seed material: for wheat - by 2.4 times, barley - by 2 times, rye and corn - 2.0 times. Given the competitive advantages of seed companies, there is a growing need to address a number of strategic problems in formulating a strategy for their development. To form a mechanism for adaptation to changes in the external environment, seed companies, at the conceptual level, should justify the strategic development model.

Propose. The purpose of the scientific article is to substantiate the theoretical and methodological foundations and to formulate a conceptual model of the seed enterprise development strategy, as well as to develop development strategies for the investigated seed enterprises in order to improve their financial and economic indicators and improve marketing potential.

Results. The object of the study was the activity of individual seed farms. Therefore, to improve their financial and economic performance and to improve their marketing potential, it is logical to use the following strategies. We offer LLC "Agro-firm" Kolos "to choose a strategy of diversification, JSC" Lischinskoe "- strategy of integration development, State enterprise" Research enterprise "Cherkasy" - strategy of economic growth on the basis of innovations. It is established that the introduction of innovative production technologies at the expense of cost optimization at a constant selling price will allow the State Enterprise "Research Enterprise" Cherkasy "to increase profits by 15% and to ensure profitability of crop production at the level of 40.4%. The analysis of the efficiency of crop production due to the integration of the production process participants in the Lishchinskoye JSC indicates the increase of crop yields and the prices of their realization. Thus, analyzing the corn yield on grain, we will note that the yield will increase to 105,34 c / ha, and the selling price up to 507,85 UAH, respectively, which will allow to provide corn profitability at grain level of 80,97%. Establishing close cooperation with all participants of the seed market will enable JSC "Lischinskoe" to reach the level of profitability of crop production - 62.75%, compared to the actual level in 2018 – 50.48%. The conducted SWOT-analysis has made the following conclusions: for the further effective functioning of these enterprises it is necessary to apply an innovation-investment strategy of development. First and foremost, the seed industry should consider the potential and threats, as well as the weaknesses and strengths of the enterprises themselves, which in the long run will provide them with the production of high-quality products, with the aim of enhancing their competitive advantage, both domestically and internationally.

Originality. The methodological aspects of forming the strategy of development of the seed plants under study were further developed on the basis of the use of the economic-mathematical model with the use of the simplex method, which allowed to optimize the structure of the acreage and increase their level of competitiveness. Based on the developed economic and mathematical model, it is established that by improving the structure of acreage under limited resources, profit of LLC "Agro Firm" Kolos "will increase by 67.9% and will amount to 10185,47 thousand UAH at the actual level of 6065,9 thousand UAH.

Conclusion. The main task of strategic development of seed enterprises is to improve the quality of seed material, determine the priority areas for their effective functioning and counteract the risks of the environment. We believe that the seed industry must develop in the conditions of creation and functioning of a transparent and regulated market for seeds and seeds materials. Therefore, it is necessary to: establish state control over seed producers; to support domestic breeding enterprises through preferential taxation and low credit rates; to increase the role of the seed association of Ukraine in controlling the introduction of the seed base in the section of varieties and hybrids; attracting foreign investment in order to improve the quality of domestic breeding varieties; ensure the equivalence of the seed production certification and control system with the requirements of the European Union; improve the state regulation of the seed system and the protection of plant variety rights. One of the conditions for increasing the export of seeds of Ukrainian production is improving the domestic seed system and our country's membership in the International Organization for Economic Cooperation and Development (OECD) and joining the variety certification schemes. As a result of the strategy of development of seed companies will increase their competitiveness in the foreign market and increase the profitability of the industry as a whole.


Keywords


grain, corn seeds, development strategy, diversification strategy, integration development strategy, economic growth strategy based on innovation, seed companies, LLC "Kolos" Agro Firm, JSC "Lischinskoe", State Research Enterprise "Cherkasy".

References


Zakharchuk O.V. (2018). Rynok nasinnya Ukrayiny u 2018 rotsi. URL: https://infoindustria.com.ua/rinok-nasinnya-ukrayini-u-2018-rotsi/ (Accessed 20.09.2019).

Synchuk I.V. (2016). Vplyv SWOT-Analizu na pryynyattya upravlinsʹkykh rishenʹ v umovakh finansovoyi kryzy. Young Scientist, 3 (30), 174–178.

Perfilova O.Yе. (2008). Problemy ta osoblyvosti vprovadzhennya SWOT-analizu v praktyku stratehichnoho upravlinnya vitchyznyanykh pidpryyemstv. Visnyk Natsionalʹnoho universytetu "Lʹvivsʹka politekhnika", 624, 77–84.

Kryvda V.I., Kryvda O.V., Narayevsʹkyy S.V. (2007). Mozhlyvosti udoskonalennya metodyky SWOT-analizu. Ekonomiko-matematychne modelyuvannya sotsialʹno-ekonomichnykh system; zb. nauk. pratsʹ MNNTS ItiS, 12, 74–77.

Stratehiya rozvytku ahrarnoho sektoru ekonomiky Ukrayiny na period do 2020 r. URL: http://minagro.gov.ua/node/7644 (Accessed 20.09.2019).

Official site of the State Statistics Service of Ukraine. URL: http://www.ukrstat.gov.ua/. (Accessed 20.09.2019).

Official site of the Seed Association of Ukraine. URL: http://ukrseeds.org.ua/ (Accessed 20.09.2019).

Official site of LLC "Agro Firm Kolos". URL: https://www.agrokolos.com.ua/ (Accessed 20.09.2019).


Full Text: PDF

Refbacks

  • There are currently no refbacks.
Archive
2015 4 12   24 33  
2016 1 2   3 4  
2017 1 2 (V.1) 2 (V.2) 3 4 (V.1) 4 (V.2)
2018 1 2   3 4  
2019 1 2   3 4    

User

Information

Journal Content

Browse

Language