Evaluation of comparative advantages of agricultural enterprises in EU markets

Abstract

The paper describes the areas for improving the competitiveness of agriculture. The important place of agriculture in the economic system of the country is substantiated. The methodical approach for calculating the level of comparative advantages of agricultural products in the EU markets is outlined. The index of comparative advantages of products of Ukrainian agricultural enterprises in European markets is calculated. Agricultural products are classified according to the level of comparative advantages. Increasing the competitiveness of the national agro-industrial complex involves the sustainable operation of all its interconnected subsystems: agro-industrial production; food markets; sale, distribution and consumption of food; personnel, financial, logistical, technological, informational and scientific support. However, in modern conditions, the functioning of agricultural enterprises is accompanied by a number of problematic aspects, which significantly hinders their long-term development. In the context of European integration, there is an objective need to form effective mechanisms to strengthen the competitive position of Ukrainian agricultural enterprises in domestic and foreign markets. According to the evaluation results, 3 groups of agricultural products were identified with: 1) a high level of the index of comparative advantages; 2) medium and low level of the index of comparative advantages; 3) no comparative advantages. The results of calculations of the index of comparative advantages for the first group (cereals; seeds and fruits of oilseeds; fats and oils of animal or vegetable origin) show a positive trend since 2016 for cereals and seeds and fruits of oilseeds. Grain crops have the highest competitive position on the EU market. Almost all agricultural products of the second group (meat and edible by-products; vegetables; edible fruits and nuts) despite the positive dynamics only in 2016 showed their comparative advantages (RCA > 0) and by 2018 were constantly growing. Products of the flour and mill cereal industry are characterized during 2013-2019 by approximately the same level.