Summary
On the basis of statistical data, the problem of hop production in Ukraine in the paper was presents. It is proposed that the way out of the crisis that emerged in the hop industry. The study was conducted in 2008–2012, during the first financial crisis in Ukraine.
Keywords: hop, statistical data, multilevel research
Introduction
The modern market is characterized by increased attention to the “non-price” form of competi-tion, especially the competition for quality. Therefore, the degree of success of the hop-growing industry is not only the magnitude of the harvest, that is – the gross fees of hops, but in the current economic conditions – its quality. At all stages of production, many different factors affect the qual-ity of hop products, requiring the creation of an effective mechanism for a product qualqual-ity manage-ment system. The economic effect is achieved, in this case, through the implemanage-mentation of the func-tions of the components of the system that are in the planning, production and motivation to improve the quality, coordination of the interaction of components among themselves and with the external economic environment.
In her investigation, T. Sitnikova notes that the EU countries allocate annually 50 billion dollars for the support of agriculture. According to the information of the World Bank, the advanced coun-tries spend up to 100 billion dollars for the development of agriculture every year. The hop-growing industry in all developed countries, primarily in the USA, the EU countries, China, Australia is protected by a multi-faceted system of the government support measures.
At the same time, it is necessary to ensure a reasonable approach to the implementation of all demands of the World Trade Organization, in particular concerning the development of methodol-ogy and the financial support of hop-growing, in order to take in to account the country’s economic interests in the development of this branch [1, 2, 3, 4].
Prospects of the development of the hop sector were considered in 2009 by the delegates from 14 countries at the World Congress of hop growers in Leon, Spain. Analysis of materials of the mentioned Congress has shown that Ukraine, as a producer of hops, is known for its traditions, since the days of last century; thus, it has considerable experience in the hop growing and brewing indus-tries. By results of such participation, the Ukrainian delegates came to the conclusion that govern-ment support of the hop sector in Ukraine is inefficient; some “bureaucratic approaches” negatively affect the revival of hop growing, which is virtually uncontested for many regions not only in terms of providing the country's hops, but also in terms of creating new jobs and rural development of the
Polisky region and forest steppe. The development of the field is possible to provide by using the global experience, based on – technological approaches of laying plantations with varied quality planting material, its proper cultivation, processing and pre-harvest contracting with consumers, in-cluding brewers.
Similarly, in 2013 in Kyiv, Ukraine the International Hop Growers’ Convention was held. This event provides recognition of the achievements for domestic hop growing, primarily, in scientific research. During the convention, a presentation of the latest scientific advances in hop growing was made. Issues were discussed such as the modern state of hop growing in the world; the morpholog-ical, cytological features of hop and others [5, 6, 7].
In the hop-growing sector, as in the agricultural sector in general, the revival is caused by a sys-tem of the economic relations of society. The socio-economic specifics of the hop growing revival lies in the possibility of a qualified transformation of the sector by destroying the old pone and intensive formation of a higher-level new method of production. Advanced experience of developed EU countries shows that efficient production is possible only using the new developments of agri-cultural science and production intensification in combination with an active marketing policy for the promotion of foreign and domestic markets.
Taking into account the crisis in the hop-growing industry associated with a reduction in basic quantitative and qualitative performance indicators that actually pushed it back decades and under-mined recent gains, cost-effectiveness issues for the industry acquire topical research.
Today, it is extremely important to solve the issue of implementation, above all, effective pric-ing and customs policy, which with an effective financial mechanism of state support use will ensure the development of hop growing industry. With the ability to implement locally grown products at world prices, hop growing enterprises will not experience an acute need for public funding, without which a profitable work of hop companies cannot be ensured today.
Scientist Haidutsky P. emphasizes the need to reform the system of state support in his writings expressing that the objective of the new stage of agricultural policy is to ensure sustainable devel-opment of the industry in an open competitive environment, establish transparent agricultural mar-ket, provide effective government support, and enable financial agricultural self-sufficiency. On such terms, this new agricultural policy should have market and integration direction caused by the preparation for EU accession [8, 9, 10].
Within the market economy, the level of competitiveness of products, along with the indicators of quality and price has a significant impact on the system of moving the goods market, i.e. market-ing activities. This situation requires the establishment of appropriate market infrastructure (service cooperatives), especially under strong competitive pressure. Economic efficiency in the sector can be achieved only with the full implementation of hop-growing enterprises products. This requires the cooperation of all market participants, rather than conflict with each other.
Reflecting the challenges of modern hop growing, the academician Y. Savchenko states that market conditions require the production and sale of high-quality and competitive products, which can be obtained with the help of the accelerated implementation of the completed and approved scientific and technological development of innovative activities.
The abovementioned scientists suggest providing a more efficient use of budget resources allo-cated for hop growing. Also, for the revival and development of hop growing, a modern material and technical basis should be created first of all [11, 12, 13, 14].
The analysis of the cost of production of hops for his elements showed that during 2008–2012, the largest specific gravity in the cost structure is occupied by material costs. The structure of the costs of hop production in Ukraine in 2008–2012 is given in Table 1.
Table 1. Structure of the costs of hop production in Ukraine in 2008–2012 *
* Personal research according to the State Statistics Service of Ukraine [15].
As seen from the table above during the 2004–2012 in the cost structure of producers of hops (119,760.3 thousand grn.), direct material costs occupy the largest specific gravity – 51544.2 thou-sand. grn.(or 41.9%), other direct costs and overhead costs – 29281.7 thouthou-sand. grn.(or 32.8%), while direct labor costs – 28934.4 thousand. grn. (or 24.2%).
Thus, the study period demonstrates a tendency to reduce the specific gravity of expenses such as seeds and planting materials, fertilizers and direct labor costs. As a result, if in 2008 the specific gravity of these items was 2.9%, 7.8% and 28.8%, respectively, in 2012 the specific gravity of these items decreased 4.8, 1.5 and 1.4 times (or 2.3, 2.6 and 7.9 percentage points). At the same time, other direct – total expenditures and other financial charges increased by 1.3 times to the contrary.
The aforementioned shows a significant reduction in the costs associated with the laying of young plantations of hops that leads not only to a slowdown in the industry but rather to its decline. Thus, the reduction in direct labor costs creates the risk of worsening of the socio-economic situation in the hop growing regions.
At the same time, according to statistics in 2008–2012, the costs for production of hops and hop products for 1 centner tend to increase (see Table 2).
Table 2. Costs of hops and hop products in Ukraine in 2008–2012 * Period Total costs, th. grn. Total cost per 1 kg
of output, grn. 2008 26807.2 3569.06 2009 33601.1 3000.1 2010 26373.8 4597.94 2011 19321.9 3842.86 2012 13656.3 4546.04 Absolute deviation (+/-) 2012 y. to 2009 y. -19944.8 +1545.94 * Personal research according to the State Statistics Service of Ukraine [15].
According to the above table, it follows that despite the costs cut from the hop economy of Ukraine for hops and hop products growing during 2009–2012 almost 2.5 times or at 19,944.8 thou-sand. grn.; the costs for 1 c. of output increased in 1.5 times or by 1545.94 thouthou-sand. grn. On the contrary, that was particularly associated with a decrease in the gross production of hops and hop products. Generally, this dynamic in the reduction of costs in Ukraine for the production of hops and hop products indicates significant amounts of the reduction of this production in the country.
Materials of the study assured the dynamics of growth for the rate of nonprofitablity of hop farms in the sector according to the growth of losses in 2008–2012 (except 2008), which, among other things, is linked to the reduction in the average selling price of 1 c. of hops and hop products. The dynamics of results from the sale of hops and hop products in Ukraine in 2008–2012 are pre-sented in Table 3.
Table 3. Dynamics of results from the sale of hops and hop products in Ukraine in 2008–2012 *
1 – in 2012 is not provided by chapter 2.4. “The results from the sale of crop products” 50 s / h form. * Personal study according to the State Statistics Service of Ukraine [15].
Thus, during 2009–2012, the number of sold products decreased by half (or 0.4 tons), while if hop growing farms in the country, as a consequence of product sales in 2009, managed to earn a net
profit in the amount of 91.4% to the full cost of production, then in 2012 – it was only 52%. The aforementioned has led to an increase; in the reporting period, the losses from the sale of hops and hop products in 3.5 times (or 5880.2 thous. grn.) and, as a result, the losses from hop-growing farms in 2012 was at the level of 48% compared to 8.6% in 2009.
One of the reasons for this situation – to reduce the average selling price of one centner of hops and hop products in 2012 to 1.6 times (or 1.2 thous. grn. for 1 c) in comparison with 2009, while during 2008–2010, only about 70% of the production was sold, leading to the formation of signifi-cant remnants of unsold products.
During the 2008–2012, hop producers realized over 20% hops and hop products to processors. Directions for the implementation of hops and hop products in Ukraine in 2008–2012 are presented in Table 4.
Table 4. Direction of implementation of hops and hop products in Ukraine in 2008–2012
* Personal study according to the State Statistics Service of Ukraine [15].
According to the data given in the table, during 2009–2012 the increase of specific gravity volumes for the realization of hops and hop products to processing enterprises was 6.4 times (or 152 tons) that was connected with the needs of breweries regarding the products for processing hops. However, specific gravity of the realization of hops during the reporting period, by another direc-tions, on the contrary, was reduced. At the same time, the selling price of one ton of hops to pro-cessing companies was nearly in 1.5 times higher the price of the hops realization.
So, for the last five years there has been a decline in the economic indicators of the hop-growing sector: in particular, the loss ratio and amounts of losses obtained by hop-growing farms increases, the number of sales and the average sales price for 1 centner of hops is reduced. Reducing the spe-cific gravity of direct labor costs in total costs of hop-growing farms for growing hops against a back-ground total production costs growing creates the risk for social tension in hop-growing regions, including the Polessie area.
Conclusions and prospects for further research
Therefore, for the last five years there has been a decline in the economic indicators of the hop-growing sector: in particular, in the loss ratio and amounts of losses obtained by hop-hop-growing farms increases, the number of sales and the average sales price for 1 centner of hops is reduced. Reducing the costs associated with the laying of young plantations of hops leads not only to a slow down in the development of the industry, but also to its decline. This decrease in the proportion of direct labor costs in total and the costs of hop-growing farms for growing hops creates the risk for social tension in hop-growing regions, including the Polessie area.
According to many modern agricultural scientists, we believe that the crisis in the hop-growing industry was the result of the dodging of state regulations for economic processes that occur in the industry under the conditions of deepening the integration relations with the European Union. Thus, the present requirement is the development national and regional program development of the in-dustry implements steps, which would be supported by government funding wherein the funds would come to the state budget from fees for the development of viticulture, horticulture and hop. At the same time, performance indicators and the efficiency of the implementation of such measures should be defined in relation to the volume of directed resources.
At the same time, such measures will be ineffective without a combination with the effective export and import of customs policy of the state and most importantly – the consistency of such a “road map” with the needs of the breweries that requires confirmation of directions of development by the relevant Memorandum.
Bibliography
[1] Sitnikova T. Quality and competitiveness of domestic hop products: Ways to improve / T. Sit-nikova / / “Scientific achievements of young people – solving problems AIC” materials of the first scientific-practical conference of young scientists, December 15, 2009, Zhytomyr. – Zhytomyr: Publishing house of Institute of Agriculture of Polessye, 2009. – p. 59.
[2] Sitnikova T. Factors influencing efficiency hop / T. Sitnikova / / Proceedings of "agro-indus-trial production Polessye" Institute of Agricultural Polessye NAAS, 2011, 4. – pp. 124– 127.
[3] Sitnikova T. Problems of production quality of hops/ T. Sitnikova / / Strategy for market adaptation hop industry materials Vseukr. scientific-practical. Symposium, July 1, 2008, Zhi-tomir. – Exactly: Type of SHEE "State. ahroekol. University Press ", 2008. – p. 128. [4] Sitnikova T. Improving the competitiveness of the industry in terms of hops, Ukraine's
ac-cession to the WTO / T. Sitnikova / / Bulletin of Zhytomyr National Agroecological Univer-sity, 2009, 2. – pp. 229–237.
[5] Melnychuk, M. Perspectives of domestic hop growing / M. Melnychuk / / All Ukrainian business newspaper “Agrarian week. Ukraine”. – 2009 (02.11.–08.11.2009). – 36 (120). – p. 12.
[6] Melnychuk M.D., Zahrafova M.I., Klyuvadenko A.A. Biological technology and economic efficiency hop queen creation for industrial plantations / / Agricultural Science and Educa-tion. – 2004. –5, 3–4. – pp. 20–25.
[7] Melnychuk M.D. International Congress hmelyariv – 2013 / / [electronic resource]. – Mode of access: http:// mdmelnychuk.com/ index.php/ua/diyalnist/navchalno-naukova-diyal-nist/mizhnarodnij-kongres-khmelyariv-2013.
[8] Haidutsky P. About the basic principles of reforming the system of state support for agricul-ture and rural development / P. Haidutsky / / Economy AIC. – 2005. - 11. – pp. 43–48. [9] Haidutsky P.I. Ukraine needs a new agricultural policy / P.I. Haidutsky / / Economy APC. –
2005. – 10.– pp.3–7.
[10] Haidutsky P. I. On the Basic Principles of Reform of state support for agriculture and rural development / PI Haidutsky / / Economy APC. – 2005. – 11. – pp. 43–48.
[11] Savchenko Y. Issues of contemporary hop growing / Y. Savchenko, G. Kovtun / / Bulletin of Agricultural Science. – 2003. – 11 (November). – pp. 29–32.
[12] Savchenko Y. Use of government support hop / Y. Savchenko, T. Pryymachuk, AV Pro-cenko / / Bulletin of Agricultural Science, 2008, 11 (November). – pp. 72–76.
[13] Savchenko, Y. Evaluation of the economic efficiency of hop / Y. Savchenko, T. Pryymachuk, T. Sitnykova / / Bulletin of Agricultural Science, 2011, 1 (January). – pp. 66–70. [14] Y. Savchenko An innovative way of hop / Y. Savchenko and the authors of the / / Zhytomyr,
"Ruth." – 2011. – p. 112.
[15] Statistical bulletin “Main Economic Indicators of agricultural production in agricultural en-terprises” (Form – 50 a/c) for 2008–2012. State Statistics Service of Ukraine [electronic re-source]. – Mode of access: http: / / www.ukrstat.gov.ua/.
ANALIZA EKONOMICZNA PRODUKCJI CHMIELU W WARUNKACH WIELOPOZIOMOWYCH CZYNNIKÓW JEJ WSPARCIA
Streszczenie
W artykule przedstawiono, na podstawie danych statystycznych, problem produk-cji chmielu na Ukrainie. Proponuje si sposób wyjcia z kryzysu, jaki pojawił si w przemyle chmielowym. Badania prowadzono w latach 2008–2012, okresie pierw-szego kryzysu finansowego na Ukrainie.
Słowa klucze: chmiel, dane statystyczne, badania wielopoziomowe
Sayinskyy Dmitry
Department of Territorial Administration of the Accounting Chamber of Ukraine, Vinnitsa National Scientific Center “Institute of Agrarian Economics”, Kyiv
