Abstract

The aim of the article. The aim of this article is to perform a comparative analysis of methodological approaches to assessment of support of agricultural-food sector by the Organization for Economic Cooperation and Development and the World Trade Organization, to investigate peculiarities of the Ukrainian policy for support of agricultural industry compared to the policy of Russia, EU and the USA, and to substantiate the ways for increasing the efficiency of state support of agricultural sector in Ukraine. Volumes and levels of total support estimation of agricultural industry, levels of support of producers, consumers of agricultural products and general services in agricultural industry are analyzed with the use of information database of OECD. The results of the analysis. In Ukraine, the share of Total Support Estimate in gross national product is higher compared to Russia, the USA and EU, that is explained by greater share of agricultural industry in the economy. We used the indicator of share of Total Support Estimate in the gross value added by agricultural industry for more objective description of level of Total Support Estimate. There are essential differences between the investigated countries as for the Total Support Estimate structure. In Russia, a clear advantage is given to agricultural producers` support. In 2010, their share made almost 85% of Total Support Estimate, the remaining costs were directed to the sphere of services in agricultural industry. A similar structure of support is observed in EU countries. The main part of funds is directed to agricultural producers` support (87,2%), the share of the sphere of services is 11,5%, and the share of consumers makes 1,3%. As for 2010 in the USA, over 50% of funds were used to support the services, approximately 30% – to support consumers, and less than 20% –to support producers of agricultural goods. The structure of support in Ukraine is characterized by lack of uniformity. Over the studied period, Ukraine cardinally changed the vector of support several times. Recently, the advantage is given to support of Ukrainian producers (67,1%), the remaining funds are allocated to the sphere of services in agricultural industry. Despite a high share of payments from budget to Ukrainian producers, the share of transfers from consumers remains higher than in the USA and EU countries. This confirms the fact of inefficiency in budgetary programs` realization of support in Ukraine. In the USA and EU countries which characterized by a high specific weight of payments from budget, the support is performed at the expense of the well-to-do population and, in the end, contributes to a decrease in the share of expenses for foodstuffs in budgets of poor families. Over the analyzed years, the level of support of producers of agricultural goods in the USA, EU and Ukraine reduced gradually and in 2008-2010 became more low than in Russia, however this is not an evidence of more favorable conditions for Russian producers since the level of total support in Russia appeared to be low (1,4%). The mechanism of agricultural producers` support is unsatisfactory in Ukraine. Ukrainian producers receive a considerable part of support due to excess of internal procurement prices over the world prices for similar products. Conclusions and directions of further researches. Results of the performed analysis allowed to come to a conclusion that the state support of producers is inefficient. The policy of support of agricultural industry of Ukraine is characterized by absence of stability, and is performed at the expense of consumers. Despite a considerable share of gross value added by agricultural industry in the Ukrainian economy, the share of sector support in the gross value added (GVA) of agricultural industry is the lowest among the analyzed countries. Over the investigated period, Ukraine cardinally changed its support vector several times. The level of taxation of consumers exceeds the level of support of producers that is an evidence of an inadequate mechanism of market prices formation and outflow of funds from agrarian sector of economy. Despite a high share of payments from budget to Ukrainian producers, the share of transfers from consumers remains higher than in the USA and EU. Questions concerning the evaluation of agricultural state support should become the subject of further research to improve the effectiveness and efficiency of budget spending, the systematization of statistical reporting forms, of scope and criteria for state aid, the formation of a transparent support mechanism for all forms of agricultural enterprises.

Keywords: state regulation, state support, agrarian sector, agricultural industry, OECD (Organization for Economic Cooperation and Development), WTO (World Trade Organization)

Cite as: Melnyk T. & Golovachova, O. (2013). Evaluation of agricultural state support of Ukraine. Marketing and Management of Innovations, 3, 169-184. https://doi.org/10.21272/mmi.2013.3-16

This work is licensed under a Creative Commons Attribution 4.0 International License

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