Basic ways and mechanisms to overcome economic and legal problems in meat and dairy sectors

Economic Annals-ХХI: Volume 145, Issue 9-10(2), Pages: 52-55

Citation information:
Lozynska, I. (2014). Basic ways and mechanisms to overcome economic and legal problems in meat and dairy sectors. Economic Annals-XXI, 9-10(2), 52-55. https://ea21journal.world/index.php/ea-v145-13/

Inna Lozynska
PhD (Economics),
Associate Professor,
Sumy National Agrarian University
160 H. Kondratyeva Str., Sumy, 40021, Ukraine
Inna_lozinskaya@inbox.ru

Basic ways and mechanisms to overcome economic and legal problems in meat and dairy sectors

Abstract. Purpose. Ukraine has a large number of legal acts regulating production of meat and dairy products, provision and management of investment, labour, material and technical resources, innovations, land. However, this number of constituent and regulatory documentation does not help, but creates additional difficulties in economic activity. The main key to revival of the meat industry and the dairy cattle producers, as well as efficiency of agricultural enterprises improvement is creation of regulatory framework through the clever combination of market self-regulation and government support.

Discussion. In today’s realities, market cannot ensure food security, parity prices of industrial and agricultural products, export promotion, ecologization of production, preservation and improvement of breeding potential, development of the rural areas. Hence, the mechanism of state support for the compensation of market inability is a common phenomenon around the world.

Results. Equally important for Ukraine are the problems of economic and legal mechanism and the corresponding financial basis for the implementation of certain provisions of legal acts, as well as inconsistency of many legal acts of agricultural legislation with the norms and standards of the European Union and the World Trade Organization. The quality of legislation is one of the most important factors of national security, protection of the national interests of Ukraine, the rights and interests of legal subjects. Current regulations provide satisfactory conditions for the investment climate improving. Experts note that most of the investors’ risk are associated with unpredictable changes in legislation, and about 50% of the risk are caused by the state policy imperfection in the field of agriculture and cattle breeding, if the actions are inadequate in conditions of the market and do not allow agricultural producers to predict the future conduct of its own economic activity, and investors – to be sure about return on investment.

Conclusion. To bring the legal framework of Ukraine’s agriculture on a new, global level and make it more effective, we must use a global law-making experience. In addition, approval of the Agrarian Code of Ukraine will help to avoid many problems, for example, by improving the mechanism of calculation and payment of subsidies to the producers of milk and meat cattle.

Today, in dairy cattle industry 3 state programs are being implemented, and in the area of beef cattle – a national project «Renewed cattle», the implementation of which will make it possible to stabilize and build up cattle herds, to raise the level of consumption of animal products per person, increase volume of production, and improve the financial and economic situation of farmers.

Keywords: Government Support; Meat and Dairy Cattle; Regulation; Legal Framework for Development Industry

JEL Classіfіcatіon: Н80; К39; Q18

References

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Received 16.09.2014