FEATURES OF MANAGEMENT IN THE AGRICULTURAL BUSINESS OF UKRAINE

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Iryna KYRYLIUK
Oleksii LIUTYI

Abstract

Introduction. In today's environment, the agricultural sector is the leading industry in Ukraine. Modern agricultural business is closely interacting with the global market, and effective management is becoming a key prerequisite for increasing the competitiveness of this business. The results of the latest research in the field of agricultural management allow us to implement modern strategies and management methods to optimize the production and sale of agricultural products both in the domestic market and on global international markets. Modern consumers are becoming more attentive to the problems of quality and safety of agricultural products, environmental aspects of agricultural production, as well as to the issue of social responsibility of agricultural enterprises. Therefore, modern agricultural business management should take into account a number of aspects of sustainable development, environmental safety and interaction with people living in rural areas. As a result, research in the field of management in agribusiness is key to achieving efficiency, competitiveness and sustainable development in today's changing economic environment.


Purpose. The purpose of the article is to determine the features of management in the agrarian business of Ukraine. The objectives of the article are to reveal different approaches to understanding agrarian management, to determine the specifics of agrarian business and agrarian management, to identify the problems of agrarian business management in Ukraine, to substantiate the ways of digitalization of management and decision-making in agrarian business.


Results. Different approaches to the understanding of agrarian management by modern scholars are revealed. The key tasks of management in the agricultural business are identified. An integrated approach to understanding the essence of management in agrarian business is proposed. The specifics of agrarian management, which distinguishes it from other areas of management, are determined. The author's own vision of the fundamental scheme of functioning of agrarian management is proposed. The necessity of adaptation of agricultural management to global economic and trade trends, i.e. the need to develop international agricultural management skills, is proved. The general and specific functions of agrarian management are detailed. It is determined that in Ukraine the remuneration of employees of agricultural enterprises is currently at the lowest level compared to employees of other sectors of the economy. The structure of nominal wages in the agrarian business by regions of Ukraine is revealed. The dual subject structure of the agrarian business in Ukraine is revealed (on the one hand, households and small farms, on the other hand, large agricultural holdings). The external threats faced by the management of the Ukrainian agrarian business in the context of war are identified. The ways of digitalization of management and decision-making in the agricultural business are presented, which will help to optimize production, improve product quality and efficiently use available resources.


Originality. The theoretical approaches to understanding the subjective structure of agricultural business management in Ukraine have been improved on the basis of distinguishing the dual structure of modern agricultural business (on the one hand, large agricultural holdings that manage huge tracts of agricultural land, on the other hand, households that produce about half of all livestock products in Ukraine and use primitive means of production). Understanding this structure leads to an understanding of the reasons for the imbalance in the management of agricultural business development at the macro and micro levels, as well as the reasons for ineffective government decisions, corruption, etc.


Conclusions. The modern paradigm of agribusiness management emphasizes the quality of managers, their ability to identify opportunities in agribusiness, deeply understand new forms and methods of modern personnel policy, and the ability of each employee to implement strategic and operational tasks. A manager in the agricultural business is often not only a leader, but also a financier, entrepreneur and administrator responsible for the success of various business projects. The specific features of agricultural management include the use of land as the main means of production, low capital turnover, remoteness of land plots from decision-making centers, impossibility of narrow specialization due to the need to comply with crop rotation, the need to use various technical means (which causes additional costs), seasonality of production, large amplitude of product price fluctuations, limited storage capacity of products, homogeneity of agricultural products, high level of competition for Ways to digitalize management and decision-making in the agricultural business include the introduction of sensor technologies and the Internet of Things (monitoring and control systems, decision support systems) in production, the introduction of digital technologies in crop and livestock production (precision farming technologies, the use of unmanned aerial vehicles), the introduction of e-commerce technologies in the enterprise (website, e-marketplace and trading platform, digital supply and sales management systems, including the Supply Chain Management system), ensuring the development of digital skills at the enterprise, and a system to encourage specialists and employees to innovate. These solutions will help to optimize production, improve the quality of agricultural products and efficiently use available resources.

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