Business-model of rural areas development in Ukraine

Purpose. The purpose of this paper is to study the economic aspects and justification of the business-model of rural areas development in Ukraine on the basis of farms, in particular family type, for the growth of agricultural production. Methodology / approach. In the process of the study, general...

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Main Authors: Vasyl Chemerys, Vitalii Dushka, Volodymyr Maksym, Dmytro Solomonko
Format: Article
Language:English
Published: Institute of Eastern European Research and Consulting 2019-03-01
Series:Agricultural and Resource Economics
Subjects:
Online Access:http://are-journal.com/are/article/view/228
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author Vasyl Chemerys
Vitalii Dushka
Volodymyr Maksym
Dmytro Solomonko
author_facet Vasyl Chemerys
Vitalii Dushka
Volodymyr Maksym
Dmytro Solomonko
author_sort Vasyl Chemerys
collection DOAJ
description Purpose. The purpose of this paper is to study the economic aspects and justification of the business-model of rural areas development in Ukraine on the basis of farms, in particular family type, for the growth of agricultural production. Methodology / approach. In the process of the study, general scientific methods are used, in particular monographic – for complex and comprehensive study of the basic economic problems of rural areas development in Ukraine; analysis and synthesis – for determination of main factors and constituents of rural areas development on the basis of farms, including family farms; statistical – for the estimation of food stuffs potential market per 1000 habitants in rural areas; calculation-structural method – for determination the basic economic parameters of family farms development and other related industries, taking into account the criteria of extended reproduction, recoupment and economic interest. Results. The article assessed the food market potential capacity in rural settlements per 1000 habitants, according to which a production business-model of rural areas development has been proposed. This economic model is based on creation of the specialized family farms and related industries for providing food necessities of local population in main types of agricultural products. The economic indicators and criteria of successful farms development, in particular maximum scales of production, sales prices of products in the main directions of agribusiness, are defined. The sum of economic effect per one farm, which will contribute to the expanded reproduction of local agribusiness, is substantiated. Originality / scientific novelty. For the first time, a business-model of rural areas development in Ukraine on the basis of small business units for the production of agri-food products was proposed. The article presents the results of the study, which economically justify the specialized family farms development on certain directions of agribusiness with a focus on meeting the food needs of consumers in the internal market segments, which will contribute to employment growth and the socio-economic recovery of rural areas in Ukraine. Practical values / implications. The research result can be used as a framework of forming of national and regional programs of small agribusiness producers state support, in particular family farms, with the aim to realize the economic potential of agri-food industry in Ukraine.
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spelling doaj.art-c3f6b0fee401412aaa71a81aa58a6a2c2022-12-22T04:08:12ZengInstitute of Eastern European Research and ConsultingAgricultural and Resource Economics2414-584X2019-03-0151154176Business-model of rural areas development in UkraineVasyl Chemerys0Vitalii Dushka1Volodymyr Maksym2Dmytro Solomonko3Lviv National University of Veterinary Medicine and Biotechnologies named after S. Z. GzhytskyjLviv National University of Veterinary Medicine and Biotechnologies named after S. Z. GzhytskyjLviv National University of Veterinary Medicine and Biotechnologies named after S. Z. GzhytskyjLviv National University of Veterinary Medicine and Biotechnologies named after S. Z. GzhytskyjPurpose. The purpose of this paper is to study the economic aspects and justification of the business-model of rural areas development in Ukraine on the basis of farms, in particular family type, for the growth of agricultural production. Methodology / approach. In the process of the study, general scientific methods are used, in particular monographic – for complex and comprehensive study of the basic economic problems of rural areas development in Ukraine; analysis and synthesis – for determination of main factors and constituents of rural areas development on the basis of farms, including family farms; statistical – for the estimation of food stuffs potential market per 1000 habitants in rural areas; calculation-structural method – for determination the basic economic parameters of family farms development and other related industries, taking into account the criteria of extended reproduction, recoupment and economic interest. Results. The article assessed the food market potential capacity in rural settlements per 1000 habitants, according to which a production business-model of rural areas development has been proposed. This economic model is based on creation of the specialized family farms and related industries for providing food necessities of local population in main types of agricultural products. The economic indicators and criteria of successful farms development, in particular maximum scales of production, sales prices of products in the main directions of agribusiness, are defined. The sum of economic effect per one farm, which will contribute to the expanded reproduction of local agribusiness, is substantiated. Originality / scientific novelty. For the first time, a business-model of rural areas development in Ukraine on the basis of small business units for the production of agri-food products was proposed. The article presents the results of the study, which economically justify the specialized family farms development on certain directions of agribusiness with a focus on meeting the food needs of consumers in the internal market segments, which will contribute to employment growth and the socio-economic recovery of rural areas in Ukraine. Practical values / implications. The research result can be used as a framework of forming of national and regional programs of small agribusiness producers state support, in particular family farms, with the aim to realize the economic potential of agri-food industry in Ukraine.http://are-journal.com/are/article/view/228rural areasmarketbusiness-modelfamily farmagribusiness
spellingShingle Vasyl Chemerys
Vitalii Dushka
Volodymyr Maksym
Dmytro Solomonko
Business-model of rural areas development in Ukraine
Agricultural and Resource Economics
rural areas
market
business-model
family farm
agribusiness
title Business-model of rural areas development in Ukraine
title_full Business-model of rural areas development in Ukraine
title_fullStr Business-model of rural areas development in Ukraine
title_full_unstemmed Business-model of rural areas development in Ukraine
title_short Business-model of rural areas development in Ukraine
title_sort business model of rural areas development in ukraine
topic rural areas
market
business-model
family farm
agribusiness
url http://are-journal.com/are/article/view/228
work_keys_str_mv AT vasylchemerys businessmodelofruralareasdevelopmentinukraine
AT vitaliidushka businessmodelofruralareasdevelopmentinukraine
AT volodymyrmaksym businessmodelofruralareasdevelopmentinukraine
AT dmytrosolomonko businessmodelofruralareasdevelopmentinukraine