Volume 12 - Issue 62
/ February 2023
293
http:// www.amazoniainvestiga.info ISSN 2322- 6307
DOI: https://doi.org/10.34069/AI/2023.62.02.29
How to Cite:
Halanets, V., Dziurakh, Y., Yaremko, H., & Fedorchak, O. (2023). Transformation of the state regulatory policy in the agricultural
sector of Ukraine. Amazonia Investiga, 12(62), 293-301. https://doi.org/10.34069/AI/2023.62.02.29
Transformation of the state regulatory policy in the agricultural sector
of Ukraine
Трансформація державної регуляторної політики в аграрному секторі України
Received: January 13, 2023 Accepted: March 17, 2023
Written by:
Volodymyr Halanets1
https://orcid.org/0000-0001-9348-6211
Web of Science R-8649-2017
Yurii Dziurakh2
https://orcid.org/0000-0001-7131-7468
Web of Science R-8733-2017
Halyna Yaremko3
https://orcid.org/0000-0003-2257-2264
Olha Fedorchak4
https://orcid.org/0000-0001-9965-5135
Abstract
Ukraine is taking appropriate measures to achieve
an important national priority - to become a rightful
and active participant in global economic processes.
This is evidenced by the adoption of the Association
Agreement between Ukraine and the European
Union, where cooperation in the agricultural sector
is given an important place, in particular in
economic development and increasing the number
of livestock. The article aims to identify current
problems and justify priority measures for the
effective development of integration processes in
the agricultural sector of Ukraine with the European
Union. The methods used to write this article are
analysis, synthesis, generalization, explanation, and
qualification of data. The analytical method was
applied to objectively assess the socioeconomic
processes in the agricultural sector of Ukraine, and
comparative analysis was used to study the
institutional environment in the European Union
and Ukraine. The state regulatory policy in the
agricultural sector will ensure: proper regulation of
the use of pesticides and other chemicals;
development and implementation of financial
support mechanisms for agricultural enterprises;
development of an electronic system of monitoring
and control of product quality. The importance of
1
PhD in Public Administration, Associate Professor of theDepartment of Administrative and Financial Management, Institute of
Administration and Postgraduate Education, Lviv Polytechnic National University, Lviv, Ukraine.
2
PhD in Public Administration, Associate Professor of the Department of Administrative and Financial Management, Institute of
Administration and Postgraduate Education, Lviv Polytechnic National University, Lviv, Ukraine.
3
PhD in Education, Head of the Department of Foreign Languages, Lviv Polytechnic National University, Lviv, Ukraine.
4
Doctor of Science in Public Administration, Associate Professor of the Department of Public Administration and Public Service
Institute ofAdministration and Postgraduate Education, Lviv Polytechnic National University, Lviv, Ukraine.
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improving the system of state management of the
agricultural sector of Ukraine has been proven.
Keywords: integration, European Association,
state agricultural policy, institutions, rural areas,
free trade area, agricultural sector, exports, imports.
Introduction
The adaptation of Ukraine to the terms of
cooperation with the European Union in the
agricultural sector set out in the Agreement is
considered a complex and long-term process.
However, it will be an important factor for
further modernization of the domestic
agricultural sector under the generally accepted
principles of global development, strengthening
of integration processes, and based on common
interests and values.
An important prerequisite for Ukraine's effective
participation in global integration processes is
that the subjects of transnational profitable
relations achieve a collective understanding of
government programs, under the laws that
support them, an appropriate level of knowledge
and compliance with the rules set by the World
Trade Organization (WTO), other transnational
unions and relevant intergovernmental
agreements. It should be borne in mind that
transnational agreements ratified by the
Verkhovna Rada of Ukraine under the
Constitution of Ukraine have a higher legal force
than domestic legislation. However, the
applicability of their provisions depends on the
proper legal strength and compliance with
Ukrainian legislation.
Organizing the fulfillment of transnational
obligations is an important and responsible
function of state institutions. It requires not only
applied knowledge but also well-grounded
statements and the search for effective
mechanisms in the matters of state regulation of
foreign profitable activities, which should
primarily ensure the protection of the public
interest. Currently, the state is in the process of
fulfilling numerous transnational obligations,
including the measures set out in the Association
Agreement. Failure to fulfill, withhold or ineptly
fulfill these obligations will hinder the
development of beneficial cooperation with the
EU countries and reduce the effectiveness of
Ukraine's participation in other global integration
processes.
Following the Association Agreement, along
with general measures of cooperation in the field
of profitability, the directions of gradual
approximation of Ukrainian agricultural
legislation and bringing the institutional structure
and system of state control over food quality in
line with the supervisory and executive policies
and practices of the European Union are defined.
First of all, this concerns the legal support for the
regulation of supervisory mechanisms, taking
into account almost 60 applicable regulations,
directives, opinions, recommendations, and
announcements of the European Union.
Among the points of the Association Agreement,
some issues require attention. These include
finalizing the adjustment of agricultural product
quality standards, and regulating the cultivation
of organic products and genetically modified
crops. Equally important is compliance with the
rules of seed trade, preservation of geographical
values, origin, and styles of agricultural and food
products, as well as the development of
biodiversity, etc. Despite the rather long term of
the Association Agreement, there are still many
problems in these areas that need to be freshly
worked out and agreed upon. The measures
envisaged by the Agreement are insufficient in
the areas of fisheries and forestry. They require
improvement of the system of functioning for the
development of pasture areas and strengthening
of environmental protection. This includes
climate change, the development of the
agricultural wisdom and education system, the
establishment of mechanisms for the protection
of intellectual property, and other issues related
to the agricultural sector.
Thus, in the agricultural sector of Ukraine, the
fulfillment of the indicators set out in the
Association Agreement and other transnational
agreements in terms of ensuring effective
integration into global European and world profit
processes can currently be assessed as
insufficient and not entirely balanced. This is
evidenced by the slow pace of expansion of long-
term cooperative relations between the subjects
of agricultural demand. This applies to the
introduction of a unified agrarian system and the
lack of foreign investment in the domestic
agricultural sector of Ukraine. Moreover, there is
Halanets, V., Dziurakh, Y., Yaremko, H., Fedorchak, O. / Volume 12 - Issue 62: 293-301 / February, 2023
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a backwardness and low efficiency of raw
material equipment for exporting Ukrainian
agricultural products, the spread of social and
environmental problems in pastoral areas that do
not meet European trends, etc. (Food and
Agriculture Organization of the United Nations,
2021).
Thus, this situation indicates an incorrect
association in terms of approximation to
European analogs of institutional support for
foreign profitable vectors of agro-industrial
tension and the development of the state's
pastoral areas. This shows the need to strengthen
transnational cooperation and adapt the behavior
of relevant transnational and public institutions.
Regulation of these and other trends requires
intensification of the scientific search for
reasonable proposals to improve the state policy
in the association of foreign profitable activities.
It is necessary to strengthen scientific support for
the implementation of the Association
Agreement between Ukraine and the European
Union in agricultural matters.
The article aims to identify current problems and
substantiate priority measures for the effective
development of integration processes in the
agricultural sector of Ukraine with the European
Union.
Literature Review
The problems of European integration of Ukraine
related to the agrarian sector of the economy are
considered in the scientific works of many well-
known scientists and economists, namely
O. M. Borodinа (studied the agrarian sector of
Ukraine in the context of European integration);
V. I. Vlasov (studied the key areas of adaptation
of the development of the agricultural sector of
Ukraine in the context of the Common
Agricultural Policy of the EU); I. G. Kirylenko
(2000-2002 Minister of Agrarian Policy of
Ukraine; in 2000 he was a member of the
Government Committee on Reforming the
Agrarian Sector and Environmental Issues);
P. T. Sabluk (studied the problems of regional
integration as a component of economic
globalization). These and other authors pay
considerable attention to both theoretical aspects
and scientific support for the organization of
practical implementation of relevant measures on
European integration.
Results
The agricultural sector is one of the key sectors
of Ukraine's economy, contributing a significant
portion of the country's GDP and playing a
significant role in ensuring food security.
However, it is also one of the most heavily
regulated sectors in Ukraine, which creates a
challenge for businesses operating in the sector.
The problems of the agrarian sphere were
aggravated by the war with Russia. This was
clearly manifested in the export sector. The
export of grain from Ukraine through the ports
was practically blocked. However, they were
partially unblocked with the help of the world
community and UN representatives. The created
grain corridor from Ukraine operates with fairly
constant interruptions. It was not possible to fully
reorient the logistics of grain export from
Ukraine through other chains. Therefore, the
total losses from the export of grain and other
goods amounted to 61.2 billion dollars, and the
losses on agricultural products alone amounted to
18 billion dollars. Table 1 presents changes in
grain exports in Ukraine.
Table 1.
Changes in the export of cereals during 2022-2023 in Ukraine
Agriculture products
Total as of
03/27/2022
Total as of
27.03.2023
Deviation
Change %
Cereals and legumes, total, thousand tons
44849
36922
-7927
-17,67
Including, thousand tons
Wheat, thousand tons
18399
12623
-5776
-31,39
Barley, thousand tons
5641
2267
-3374
-59,81
Rye, thousand tons
161,9
16,9
-145
-89,56
Corn, thousand tons
20348
21714
1366
6,71
Wheat flour, thousand tons
66,9
108,9
42
62,78
Other flour, thousand tons
1,5
4,3
2,8
186,67
Flour together, thousand tons
68,4
113,2
44,8
65,50
In terms of grain, thousand tons
91,2
150,9
59,7
65,46
Export together (grain + flour), thousand tons
44940
37073
-7867
-17,51
Source: calculated by the authors based on (Ministry of Agrarian Policy and Food of Ukraine, 2023).
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Thus, Ukraine's total grain export opportunities
were lost by 17.5%. The largest export losses are
observed for rye and barley (89.5% and 59.8%)
(Figure 1). Wheat grain losses amounted to
31.4%. With such positions of losses, Ukrainian
agrarians began to increase the export of corn and
flour. Flour from crops other than wheat was
exported the most, and the tact increase was
187%. The export of wheat flour increased by
62.8% and the least - corn - only 6.7%. So,
despite serious difficulties in export, Ukrainian
farmers are gradually increasing export losses.
Figure 1. Ratio of grain exports in Ukraine in 2022 and 2023
It is necessary to modernize the state regulatory
policy to improve the situation and increase the
efficiency of the agricultural sector in Ukraine.
The state regulatory policy in the agricultural
sector aims to ensure the efficient functioning of
the industry and support the development of
agriculture in the country. However, many of the
existing regulations do not meet the current
realities and market requirements, which leads to
negative consequences for the industry and
society as a whole. For instance, the lack of
appropriate regulation may lead to the
widespread use of pesticides and other chemicals
that may be harmful to health, while
insufficiently effective regulation may lead to
unequal terms of trade and unfair competition
(Ministry of Agrarian Policy and Food of
Ukraine, 2021).
One of the main directions of transformation of
the state regulatory policy in the agricultural
sector is to introduce the principles of "simplicity
and clarity" in the creation and implementation
of regulations. This means that the acts should be
written in a clear and accessible manner for all
stakeholders, including farms and other
enterprises operating in the agricultural sector. It
also implies reducing the number of
administrative procedures and documents to be
submitted, which simplifies the life of the
business and reduces the costs of their
implementation.
Another important aspect is the establishment of
clear and stable rules for the industry, which will
allow agricultural enterprises to plan their actions
for the future more easily. Appropriate
mechanisms can be used to achieve this goal.
These could include legislative changes, defining
and securing property rights to land and other
resources, developing infrastructure, and
supporting access to markets.
Other possible directions for modernizing the
state regulatory policy in the agricultural sector
include the following:
Ensure appropriate regulation of the use of
pesticides and other chemicals that can harm
human health and the environment;
Development and implementation of
financial support mechanisms for small and
medium-sized agricultural enterprises;
Introduction of an electronic system for
monitoring and controlling product quality,
which will ensure food safety and increase
consumer confidence in Ukrainian products.
To summarize, the transformation of the state
regulatory policy in the agricultural sector of
Ukraine has great potential to improve the
efficiency and competitiveness of the industry.
This can help attract more investment, increase
production, and ensure sustainable economic
development of the regions.
18399
5641
161,9
20348
66,9 1,5
Wheat Barley
Rye Corn
Wheat flour Flour is different
12623
2267
16,9
21714
108,9 4,3
Wheat Barley
Rye Corn
Wheat flour Flour is different
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To succeed in this endeavor, it is important to
establish a dialog between government agencies
and business representatives, including
agricultural enterprises, to ensure that the real
needs and capabilities of the industry are taken
into account. It is also important to ensure
effective monitoring and evaluation of the results
of the implementation of new regulatory
mechanisms. This will allow for the timely
identification of possible problems and
adjustments to maximize the effectiveness of
state regulatory policy.
Thus, modernization of the state regulatory
policy in the agricultural sector of Ukraine's
economy can become an essential tool to ensure
sustainable development of the industry and
increase its competitiveness in the international
market.
Furthermore, modernization of the regulatory
policy could help to reduce corruption and unfair
competition in the agricultural sector. If
government agencies effectively monitor and
regulate the sector, this could help prevent illegal
practices in the market.
One of the important directions for modernizing
the regulatory policy in the agricultural sector is
to simplify and unify the procedures for state
registration, control, and permitting of various
types of activities. This can help reduce
bureaucratic pressure on enterprises and simplify
the process of doing business in the sector
(Lagodiienko et al., 2022).
It is also essential to ensure proper protection of
property rights to land and other resources used
in the agricultural sector. Modern technologies,
such as geospatial analysis systems, can be used
for this purpose. They allow for accurate
accounting of land plots and their more efficient
management.
To summarize, the transformation of the state
regulatory policy in the agricultural sector of
Ukraine can become an important tool for
ensuring sustainable development of the
industry, increasing its competitiveness, and
attracting new investments. To succeed in this
endeavor, it is important to ensure a dialogue
between government agencies and business
representatives, effective monitoring and
evaluation of the results of the implementation of
new regulatory mechanisms, as well as
simplification and unification of procedures for
state registration and issuance of permits for
activities in the agricultural sector, ensuring
global food security. It is also important to
consider international standards and norms
governing the agricultural sector and work on
their implementation in national legislation
(Lagodiienko et al., 2022).
Meanwhile, it should be noted that the
transformation of regulatory policy in the
agricultural sector is not an overnight process and
requires a comprehensive approach and a long-
term strategy. Furthermore, the success of
modernization depends on many factors,
including political will, mechanism of state
regulation of the investment activity in
agriculture, the efficiency of the state apparatus,
the level of business development, and others
(Vovchak et al., 2022).
Thus, the transformation of the state regulatory
policy in the agricultural sector of Ukraine is an
important component of reforming the industry
and ensuring its sustainable development. This
can be achieved through effective cooperation
between government agencies and business
representatives, the use of modern technologies,
and the adoption of international standards and
norms.
It is also crucial to consider the peculiarities of
the agricultural sector and its regulatory
environment, which differ from other sectors of
the economy. For example, the agricultural
sector has a complex chain structure involving
various actors, from seeds and fertilizers to
products and their processing. Therefore,
regulatory policy should reflect all stages of this
chain and the interrelationships between them.
Besides, it is important to ensure transparency
and openness in the decision-making process in
the agricultural sector. This can be achieved by
holding open consultations with stakeholders,
publishing draft regulations following the
requirements of the law, and ensuring access to
information on decisions and actions of
regulatory authorities.
Besides the regulatory policy, it is also important
to ensure infrastructure development and access
to financial resources for agricultural enterprises.
For instance, attracting investment and
introducing modern technologies can increase
production efficiency and ensure
competitiveness in the international market
(Bondarenko, 2021).
To summarize, the transformation of the state
regulatory policy in the agricultural sector of
Ukraine is a complex but necessary task that
requires a comprehensive approach and a long-
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term strategy. This can be achieved through the
effective cooperation of various public and
private entities, the introduction of the latest
technologies and quality standards, the
improvement of education, and support for small
and medium-sized businesses.
One of the most important components of an
effective regulatory policy is a system for
monitoring and evaluating its impact on the
industry. This allows for the timely detection of
negative consequences of decisions and
necessary adjustments to the policy. Such a
system should be as objective and independent as
possible, as well as open to stakeholders.
An important component of an effective
regulatory policy is also to improve the skills and
competence of professionals involved in the
development and implementation of regulatory
policy in the agricultural sector. For this purpose,
specialized courses, training, and master classes
on regulatory policy in the agricultural sector can
be organized.
Thus, the transformation of the state regulatory
policy in the agricultural sector of Ukraine is an
important task to ensure the stable and
sustainable development of the industry. To do
this, it is necessary to take into account the
specifics of the agricultural sector and its
regulatory environment and implement a
comprehensive approach and a long-term
strategy. It is crucial to ensure transparency and
openness in the decision-making process,
improve the skills and competence of specialists,
and improve the system of monitoring and
evaluation of the impact of regulatory policy on
the industry. This will help create a favorable
environment for the development of Ukraine's
agricultural sector, maintain its competitiveness
in the international market, and ensure a
sufficient level of income for farmers and other
industry actors.
One of the key challenges facing the agricultural
sector is ensuring the country's food security.
Ukraine has the potential to become a leader in
food production. However, to reach this goal, it
is necessary to implement effective regulatory
policies that will increase production and
improve product quality.
One of the main components of food security is
ensuring the availability and quality of food for
all citizens of the country. To achieve this goal,
it is necessary to control the quality and safety of
food at all stages of its production, processing,
and marketing, from sowing in the fields to
selling on store shelves.
To improve product quality and ensure consumer
safety, it is necessary to introduce the latest
technologies and quality standards and to
systematically monitor and evaluate the impact
of regulatory policy on food quality.
To ensure the availability of food for all citizens
of the country, it is necessary to take into account
the diversity of regions and their specifics. For
this purpose, special programs and measures can
be developed to support small and medium-sized
businesses in rural areas, which will promote the
development of local production and provide the
local population with fresh and high-quality
food.
One of the important directions of regulatory
policy to ensure food security is to support
innovation and the development of new
technologies in agriculture.
This will increase production and improve its
quality and safety, reduce production costs, and
increase the economic efficiency of the sector.
However, it is necessary to ensure an adequate
level of intellectual property rights protection for
innovative enterprises and to control the use of
new technologies in the agricultural sector.
Another important area of regulatory policy to
ensure food security is the development of a crop
and other risk insurance systems related to
increased production and improved product
quality. This will reduce the risk of financial
losses for producers and ensure the stable
development of the industry.
Furthermore, to ensure food security, it is
necessary to comply with international standards
and ensure that the products produced meet them.
This is important from the perspective of food
exports and ensuring the competitiveness of
producers in the international market.
Thus, the modernization of the state regulatory
policy in the agricultural sector of Ukraine is a
key element in ensuring the country's food
security. Ensuring the quality and safety of
products, supporting innovations and the latest
technologies, developing the insurance system,
and meeting international standards are the main
areas that will help ensure the effective
development of the agricultural sector and
strengthen the country's food security. Besides,
attention should be paid to ensuring the
availability and even distribution of products
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throughout Ukraine, including in rural areas and
remote regions.
To achieve these goals, it is necessary to actively
engage with all participants in the agricultural
market, including farmers, agricultural
cooperatives, and other industry players. Only
through cooperation and partnership can the
country's food security be achieved.
Thus, food security is a complex and
multidimensional process that requires an
integrated approach and active participation of
all market participants. Transformation of the
state regulatory policy in the agricultural sector
of Ukraine's economy is an important step in
ensuring the country's food security and
strengthening its economy as a whole.
Discussion
The development of the agricultural sector is a
key factor in Ukraine's economy, as it is one of
the largest exporters of agricultural products in
the world. However, to achieve high productivity
and product quality, it is necessary to modernize
the regulatory policy and create favorable
conditions for the development of the sector. In
addition, transformation of the state regulatory
policy can help to increase the country's food
security and ensure the availability of products
for all the population. However, it is necessary to
take into account the possible increase in
administrative costs and bureaucracy in the
transformation of regulatory policy, which may
negatively affect the activities of agricultural
enterprises and farms. In addition, changes in
regulatory policy may cause resistance and
distrust among some industry participants, which
may lead to a decrease in their activity and
investment in the development of the agricultural
sector. Therefore, it is important to develop and
implement regulatory policy with due regard for
the interests of all stakeholders and to ensure
openness and transparency in the process of
developing and implementing changes.
The introduction of modern production and
processing technologies can help to improve
quality and reduce waste, which will also
contribute to food security. However, insufficient
attention to consumer health and safety may lead
to the adoption of regulatory policies that do not
meet modern standards and requirements.
Moreover, strict rules and standards may increase
production costs and reduce the competitiveness
of products on the international market.
Modernization of regulatory policies can help to
improve food quality and safety by setting strict
standards for product safety and quality along
with controlling the production and supply of
products to the market, but it is necessary to be
attentive to the needs and requirements of the
market and consumers to ensure an efficient and
competitive industry.
The state can provide support for agricultural
enterprises and farms by providing them with
access to finance and investment to implement
new technologies and standards. In addition, the
state can conduct information campaigns to
educate and raise awareness among rural
residents about the new regulations and
standards, and help implement new food quality
control and monitoring systems. For this
purpose, special programs and initiatives can be
created to provide support and advice to
agricultural enterprises and farms. However,
there is a risk that the state may not have
sufficient financial resources to provide support
to agricultural enterprises and farms during the
transformation of regulatory policy. In this case,
there may be a misuse of funds or corruption in
their distribution. Besides that, some agricultural
enterprises and farms may not be sufficiently
motivated to implement new standards and
regulations that may increase their costs and
reduce their profitability.
The failure to implement a modernized state
regulatory policy could lead to a decline in food
quality and safety, which would negatively affect
public health and relations with international
partners. Furthermore, it may reduce Ukraine's
competitiveness in the international market and
reduce the export potential of the agricultural
sector, which could harm the country's economy
and increase its dependence on food imports.
However, the introduction of new standards and
regulations may create additional bureaucratic
obstacles for agricultural enterprises and farms,
which may increase their costs and reduce
profitability. Besides, the consequences of not
implementing the modernized state regulatory
policy may be less noticeable and will not affect
the overall economic situation of the country.
The introduction of a modernized state
regulatory policy in the agricultural sector of
Ukraine's economy can have a significant
positive impact on the quality and safety of food,
the competitiveness of Ukrainian agricultural
enterprises and farms, and the country's economy
as a whole. To achieve these goals, it is necessary
to support the government in implementing new
standards and regulations, as well as providing
support and advice to agricultural enterprises and
farms.
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However, it is also necessary to take into account
possible risks and challenges associated with the
introduction of new standards and regulations,
such as bureaucratic obstacles and a lack of
motivation for agricultural enterprises and farms
to implement new standards and regulations.
Nevertheless, considering all aspects, the
introduction of a modernized state regulatory
policy in the agricultural sector is a necessary
step to ensure the sustainable development of
Ukraine's economy and improve food quality and
safety (Ministry of Economic Development,
Trade and Agriculture of Ukraine, 2021).
Conclusions
To conclude, the modernization of the state
regulatory policy in the agricultural sector is an
important step for the sustainable development of
Ukraine's economy and the improvement of food
quality and safety. The introduction of new
standards and regulations will reduce the risks of
a slowdown in the agricultural sector, increase
the competitiveness of Ukrainian products on the
global market, and ensure an increase in
production while reducing production costs.
However, successful transformation of
regulatory policy requires significant efforts on
the part of the state and business entities. These
may include awareness-raising and education
measures, infrastructure improvements, and
increased financial resources to make the
necessary investments.
Additionally, international experience and
standards should be incorporated to ensure the
harmonization of domestic regulations and
increase the competitiveness of Ukrainian
products on the global market.
Overall, the transformation of the state regulatory
policy in the agricultural sector has great
potential for developing Ukraine's economy and
ensuring food safety and quality.
To successfully implement this transformation, it
is necessary to involve the general public,
including representatives of the agricultural
sector, scientists, and experts. This approach will
help to create an effective system of monitoring
and control over the implementation of new
standards and regulations.
It is worth noting that ensuring the sustainable
development of the agricultural sector and
increasing its competitiveness is an important
task not only for Ukraine but also for many other
countries around the world. The application of
the latest methods and technologies in
production, as well as improving the quality and
safety of food, are key elements in the fight
against global challenges such as climate change
and resource scarcity.
Thus, it can be argued that modernization of the
state regulatory policy in the agricultural sector
is an important step towards sustainable
economic development and improvement of the
quality of life.
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