THE CURRENT STATE OF DEVELOPMENT OF THE INDUSTRY AND EXPORT OF ANIMAL PRODUCTS OF UKRAINE
Authors: HERAIMOVYCH Violeta , HUMENIUK Iryna , KUBAI Оksana 
Published: February 2020

The article explores the modern State and development dynamics of livestock industry of Ukraine, as one of the leading branches in the market.

Indicators of production and consumption of livestock farming products are vital when determining the population living standards. Livestock industry is the main source of high quality food products supply, and its products are raw materials for the processing industry. Basing on the above the issue of livestock revival gets exceptionally acute in the country.

The article analyzes the current state of livestock products market development in Ukraine and its capabilities in the modern world economic space. The main trends of livestock products export are examined. The share of export in the total amount of livestock production is defined. It is ascertained that the main reasons for the livestock production and export decline are the reduction of the population of livestock of all types: cattle, pigs, poultry, and the lack of State support.

Prospective directions for the domestic agricultural products export extension primarily to the EU market are suggested: development of farming as the main component of the competitive domestic agricultural production system, increase of infrastructural projects financing, development of the financial infrastructure of the agricultural sector, improvement of the investment climate in the country.

Firstly, the necessity to develop farming as the main component of the competitive domestic agricultural production system. This time formation of an open competitive environment within the whole agricultural market rather than direct financial support to specific agricultural producers, which is so much popular by now in Ukraine, has to be the key direction of livestock farming revitalization. Only in this case the development of farming in Ukraine will lead to the activation of agricultural cooperation and the diversification of agricultural products variety to be potentially exported to the European market.

Secondly, a consistent policy of reducing the share of direct subsidies paid as a financial support to the agricultural sector, while increasing the expenses aimed at the implementation of infrastructure projects, especially emphasizing modernization of marketing, transport-logistics and informational infrastructure of agricultural market of Ukraine and its regions.

Thirdly, an important tool to stimulate exports of agricultural products from Ukraine and increase its diversification is the development of the financial infrastructure of the agricultural sector. First of all this means the formation of the modern model of financial-credit service supply for agricultural producers based on the introduction of different forms of financial leasing, non-bank credits, agricultural insurance, factoring and venture capital operations in agriculture, etc.

Fourthly, intensive implementation of steps to improve the investment climate in most regions of our country, taking into account the specifics of their agricultural production. To do this, it is necessary to create a modern industry for industry direct foreign investment attraction, including the formation of agricultural clusters and agri-technoparks focused on the intensification of modern agricultural technologies transfer to Ukrainian market.

Hence, the state and development dynamics of the livestock industry affect not only economic performance of agriculture, but also quality of life, well-being and food security of the population. Especially it is necessary to note the fact that livestock farming satisfies the needs of the domestic food market and current situation in the industry is also directly caused by the problem of declining incomes, which recent years have been falling in connection with the population’s income and paying capacity decrease.