STRATEGY FOR DEEPENING DOMESTIC PROCESSING AS A CONDITION FOR STRENGTHENING THE AGRICULTURAL VALUE CHAIN
Abstract
The article is devoted to the study of the strategy of deepening the domestic processing of agricultural raw materials as a key condition for strengthening the national value chain and increasing its economic sustainability and competitiveness. The relevance of the topic is justified by the critical raw material orientation of Ukrainian agricultural exports, which is the main structural barrier that annually causes significant losses of added value and maintains the high dependence of the economy on the volatility of world raw material prices.It is established that, despite significant production volumes, the Ukrainian agricultural sector is mainly at the initial stages of the value chain. In particular, the share of raw materials in the export structure remains dominant, while deep processing products do not occupy a sufficiently significant place. This structural imbalance is confirmed by a comparative analysis, which demonstrates that the share of added value in the final price of the product in deep processing chains is higher than in raw material chains. The purpose of the study is to develop strategic directions and a financial mechanism to overcome these imbalances. The need for a transition to an integrated model of value chain development based on clustering and cooperation of producers, which ensures economies of scale and collective modernization, is substantiated. A model of financial incentives (agricultural investment platform) is proposed to financially support this transformation. This mechanism should provide targeted long-term preferential financing associated with the fulfillment of three key conditions: orientation towards high added value, integration through cooperation, and implementation of EU standards. Such targeted financial intervention will reduce investment risks and ensure structural transformation of the agricultural sector, transforming Ukraine from an exporter of raw materials to a competitive supplier of finished agri-food products to premium markets. Prospects for further research include quantitative modeling of the multiplier effect of investments and analysis of the role of digital technologies in value chains.
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