INCREASING THE PRODUCTIVITY OF AGRICULTURAL ENTERPRISES IN UKRAINE ON THE PRINCIPLES OF SUSTAINABLE DEVELOPMENT

Abstract

The article analyzes the current state and justifies directions and tools to increase the productivity of agricultural enterprises in Ukraine in the context of sustainable development. It is noted that increasing agricultural productivity over a long period is recognized in global practice as a key factor in ensuring long-term growth in farm incomes. Total factor productivity (TFP) is widely regarded as one of the most informative indicators of agricultural production efficiency. It has been proved that agricultural productivity is an important but not exhaustive characteristic of efficiency. For a comprehensive assessment of the activities of an agricultural enterprise, it is proposed to take into account not only the level of productivity, but also economic indicators, in particular costs, profit, profitability, and innovative activity. It is concluded that productivity growth does not guarantee increased efficiency without proper cost optimization. Since its measurement is complex, the main challenges in ensuring international comparability, accounting for environmental aspects, and achieving practical suitability for analysis to support management decision-making are summarized. Relevant issues in determining the overall efficiency of the agricultural sector include climate trends, multi-crop systems, and the end use of agricultural products. It is substantiated that the growth of productivity and production in Ukrainian agriculture in recent years has strengthened its role in the national economy. The presented data on land, animal, and labor productivity show that Ukraine is lagging behind leading countries, but at the same time there is a gradual increase in the efficiency of the agricultural sector. It is estimated that in Ukraine, productivity per worker in agriculture (value added per worker) is 20.5 times lower than in the USA, 11 times lower than in France, 8.9 times lower than in Germany, and 1.3 times lower than in Poland. At the same time, agri-food products are becoming increasingly important for the state's trade balance. However, unprocessed products dominate Ukrainian agri-food exports, and their share is steadily increasing. Emphasis is placed on reducing logistics costs, which can be an important source of income growth and investment attraction in agriculture. The factors that determine the productivity of agricultural enterprises in Ukraine are summarized (natural conditions, technological development, financial stability, effective land management, management, and the level of marginality in a particular season). It is noted that changes in the productivity of agricultural enterprises can occur under the influence of one or more factors: improving technical efficiency, introducing new technologies, and achieving economies of scale in production. It is determined that increasing the productivity of agricultural enterprises through a sustainable development approach, using an integrated approach, should include technological, economic, organizational, and educational changes. It has been established that achieving balanced development of enterprises is possible through the comprehensive application of incentive mechanisms and measures to minimize risks, thereby increasing the efficiency of their operations and strengthening competitiveness. Productivity growth is possible in farms of any size - large, medium and small; however, each type of enterprise requires specific approaches to support.