THE ANALYSIS OF COMPETITIVENESS, SOCIAL, ECOLOGICAL AND ECONOMIC EFFICIENCY OF PRODUCTION AND CONSUMPTION OF LIVESTOCK PRODUCTS ORIGINATED FROM TRADITIONAL, ORGANIC AND BIOTECNOLOGICAL SECTORS

Olexandr CHEREVKO, Yevhenii KYRYLIUK, Iryna KYRYLIUK

Abstract


Problem. One of the important stages of substantiation of an effective organizational and economic mechanism for improving the quality of livestock products is to forecast the parameters of the impact of its individual components on market conditions. The influence of scientific and technological progress in the form of "chemical (green) revolution" and "genetic revolution" necessitated a three-sector typology of the world market for livestock products and the separation of markets for traditional, genetically modified and organic products. Modern studies of the competitiveness and efficiency of production and consumption of various quality livestock products are possible only on the basis of understanding the dialectical unity of the trend formation in these markets and the relevant infrastructure.

Purpose of the article is to deepen the analysis of competitiveness, socio-ecological and economic efficiency of production and consumption of livestock products originated from the traditional, organic and biotechnological sectors.

Results. To make predictive calculations of competitiveness, the market of livestock products is differentiated into three segments: the market of traditional (mass or "chemical"), genetically modified and organic products. In assessing the competitiveness of products the author took into account the trends of the population’s economic thinking, the perception of products of the traditional, biotechnological and organic sectors, established traditions of consumption. It was found that in the market of most major types of traditional livestock products there is a situation that the scientists call the "trap of inefficiency." This is due to the fact that in most cases their production does not bring tangible benefits to either producers or consumers. The article found that the price is now the key indicator that determines the scale of domestic demand for livestock products originating from the traditional (chemical) sector given the low purchasing power of the population of Ukraine. Along with the economic efficiency, the author has also highlighted social (medical-biological) and ecological efficiency of the proposed measures to improve the quality of livestock products in Ukraine. These types of efficiency and the synergy of their impact are determined by the cost of savings and losses associated with the correction of the results of production and consumption of low-quality food of animal origin dangerous to human health. A cost assessment of the socio-ecological and economic efficiency of the proposed measures is given. Due to a certain probability of comprehensive implementation of measures aimed at improving the quality of livestock products, variability and chaos in the application of state regulation tools, an option based approach to forecasting the consequences of such measures in terms of product competitiveness and market conditions has been offered. Four scenarios are taken as basic: 1) pessimistic; 2) inertial; 3) innovative; 4) systematic (the innovative scenario with effective stimulation of demand for high-quality products, development of a competitive environment in the market of high-quality products and its infrastructure).

Originality. The author has further developed theoretical and methodological approaches to the analysis of competitiveness, socio-ecological and economic efficiency of production and consumption of livestock products originating from the traditional, organic and biotechnological sectors. The four-element function of competitiveness of livestock products is substantiated and the relation between these elements is revealed. The concept of consumer benefit or rent is offered, expressed by its function. It is proved that the evaluation of the effectiveness of the livestock industry should be carried out not only from the standpoint of analysis of the ratio of resources (costs) - effect, but from the standpoint of analysis of the ratio of resources (costs) - effect - quality of life - environment. A graphical model for assessing the competitiveness of the main types of livestock products, which come from the traditional ("chemical"), organic and biotechnological sectors, based on the construction of matrix or polygon of competitiveness.

Conclusions. The relationship between the quality of livestock products and their competitiveness is crystallized on the basis of three levels of quality profile proposed by N. Kano: level 1 - basic quality or safety - meets the mandatory characteristics of products that protect the consumer from health risks (lack of chemical substances, antibiotics, hormones, etc.); level 2 - the required (expected) quality - meets the expected characteristics of the product (the presence of useful proteins and other substances, low saturated fat); level 3 - attractive (advanced) quality - meets the latest or "surprise" characteristics of genetically modified products, which are admired by consumers (the presence of omega-3 polyunsaturated fatty acids, conjugated linoleic acid (CLA), other biologically active substances, that lower cholesterol, reduce blood pressure, the risk of diabetes).

Socio-ecological and economic efficiency of production and consumption of livestock products is measured by the ratio of benefits (profitability, profitability of production, utility, consumer rent, etc.) and costs (to restore people's ability to work after consuming low-quality products by taking drugs and receiving medical services, loss of income due to diseases, due to which it is impossible to fully recover (cardiovascular, cancer, etc.), GDP losses due to high mortality among the population, losses from environmental pollution, costs of agri-environmental projects, soil restoration, etc.). The amount of the above costs and losses in Ukraine is measured in tens of billions of hryvnias annually.


Keywords


livestock products, competitiveness, socio-ecological and economic efficiency, traditional ("chemical") sector, organic sector, biotechnological sector, genetically modified products, consumer benefit (rent), producer benefit (rent), protected designation

References


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