FACTORS OF ENSURING THE COMPETITIVENESS OF UKRAINE’S PIG
BREEDING PRODUCTION IN EXTERNAL MARKETS
M. I. Ibatulin 2
, O.M. Varchenko 1
, I.V. Svynous 1
O.V. Klymchuk 3
, O.O. Drahan 1
, I.O. Herasymenko 1
National Agrarian University, Bila Tserkva, 8/1, Soborna Sq, 09117, Ukraine
National University of Life and Environmental Sciences, 11, Heroiv Oborony Str, Kyiv, 03041, Ukraine
Vinnytsia National Agrarian University, Vinnytsia, Ukraine
E-mail: firstname.lastname@example.org 1
, email@example.com 2
; firstname.lastname@example.org 3
Received May 22, 2019 / Received June 07, 2019 / Accepted July 19 , 2019
Aim. To substantiate the approaches to activating export transactions in the market of pig breeding products, determining the
indicators of competitiveness of the main kinds of meat and relative competitiveness of pig breeding products in the leading
countries based on the identifi cation of factors, restraining the export of Ukrainian pig breeding products, and elaborating the
suggestions on eliminating their negative impact on the dynamics of foreign economic activity in the industry. Methods. The
methodological approaches of the study were based on the information about the volumes of foreign trade, mainly used for
international comparison and determined for each commodity or commodity group. The Relative Export Advantage Index
(RXA), the Relative Import Penetration Index (RMP) and the Relative Trade Advantage Index (RTA) were determined while
estimating competitive advantages of pig breeding products. The study involved a comprehensive comparative analysis of the
main kinds of meat products in the external market using the model of “food independence – competitiveness”. The index of
food independence was used along with the generalizing index of competitiveness for some kinds of meat products – the modi-
fi ed Balassa index. It was determined that it was reasonable to determine the level of food independence based on food self-
production within the range of 70–80 % from the commodity resources of the domestic food market. Our study involved the
data of the informational database of the State Statistics Service of Ukraine and FAO regarding the volume of export-import of
pig breeding production. Results. It has been proven that there are no competitive advantages of Ukraine’s pig breeding produc-
tion in external markets; there is insuffi cient food independence on the background of potential advantages for the expansion
of export, in particular, that of cheap fodder and logistics. A considerable decrease in the exchange rate for hryvnia compared
to foreign currencies of the leading countries creates prerequisites for successful promotion of Ukrainian pork both in domestic
and foreign markets. The need of monitoring the implementation of food independence criteria and diversifi cation of export
specialization of the country was substantiated. In the long-term perspective, it is reasonable to optimize the level of protection
for the market of pig breeding products, to stimulate domestic production, to distribute the instruments of state support for the
“green box”. It has been proven that the main directions of supporting the export of domestic agrarian products should become
as follows: facilitating export procedures; expanding assortment and accessibility of fi nancial services; developing the support-
ing infrastructure; informational support for exporters; conducting research and implementing support programs; the activity of
the system of credit-insurance institute and trade representations should be carried out in a single complex via determining the
potential market and fi nancial-insurance support for the export. Conclusions. The method of two-criteria analysis of the status
of domestic market for meat products based on the indices of food safety and international competitiveness has been developed
and tested which will promote complex estimation of positions of some kinds of commodities in external market. The model of
two-criteria analysis allows substantiating effective instruments of state regulation and protecting the relevant market of prod-
ucts. The method of two-criteria analysis of meat products is universal, i.e. it may be used to determine the positions of different
commodity groups in the external market. The evaluation of competitiveness of the main kinds of meat products – pork, beef and
poultry meat – demonstrated the absence of competitive advantages of pig breeding production in external markets and insuf-
fi cient food independence. The factors, restraining the expansion of pork export, were systematized and divided into three main
groups: technological; normative and regulatory; veterinary, and the ways of eliminating them were specifi ed. The measures of
creating favorable export-institutional environment were elaborated and the main directions of supporting export of domestic
pig breeding production were suggested.
competitive advantages, trade advantages, export, import, pig breeding production, export credit agency, export
promotion, export infrastructure.
1. Yatsenko OM, Nevzghliad NH. The global trends of the agri-food market: the prospects for Ukraine, 2015;(27):54-62.
2. Varchenko O, Svynous I, Grynchuk Y, Tkachenko K, Shust O. The strategy of developing agricultural supply chain in terms of food security in Ukraine. Inter. J. Supp. Chain Managem., 2018;7(5):657-66. https://ojs. excelingtech.co.uk/index.php/IJSCM/article/view/2358.
3. Shpychak OM. Price formation problems in the context of the purchasing ability of the population and infl ation processes. Ekonomika APK, 2016;(6):59-70 (in Ukrainian).
4. Ibatullin MI. World market of production of swine breeding and place of Ukraine in it, Bul. Agricult. Sci., 2017;(1): 62-7. https://doi.org/10.31073/agrovisnyk201701-12.
5. Han J, Lu H, Trienekens JH, Omta SWF. The impact of supply chain integration on fi rm performance in the pork processing industry in China. Chin. Managem. Stud., 2017;7(2):230-52. https://doi.org/10.1108/CMSJun-2011-0034.
6. Schulze B, Spiller A, Theuvsen L. A broader view on vertical coordination: Lessons from German pork production. J. Chain Network Sci., 2007;7(1):35-53. https:// doi.org/10.3920/JCNS2007.x076.
7. Szymańska EJ. The development of the pork market in the world in terms of globalization. J. Agribus. Rural Development., 2017;4(46):843-50. doi: 10.17306/J. JARD.2017.00362.
8. Nagy L, Hryszko K, Rycombel D. Structural changes in the Polish and Hungarian pig sectors since EU accession. Potori, Chmielinski, Fieldsend (eds): Structural changes in Polish and Hungarian agriculture since EU accession: Lessons learned and implications for the design of future agricultural policies. Research Institute of Agricultural Economics, Budapest. 2014:165-83.
9. Rumánková L. Examination of market structure in selected livestock agri-food chains in the Czech Republic. Acta Universit. Agricult. Silvicult. Mendel. Brunen., 2012;60(7):243-58. doi: 10.11118/actaun201260070243.
10. Varchenko O, Svynous I, Grynchuk Y, Khakhula B, Ibatullin M. Improvement of eco-taxation of good producers of pig husbandry in Ukraine. Academy of Accounting and Financial Studies Journal., 2018;22(5):1-11.
11. Dunay A, Vinkler-Rajcsányi K. Hungarian pig sector: Actual problems and prospects for the future development. Acta Universit. Agricult. Silvicult. Mendel. Brunen., 2016;64(6):1879-88. doi: 10.11118/actaun2016- 64061879.
12. Slaboch J, Kotyza P. Comparison of self-suffi ciency of selected types of meat in the Visegrad countries. J. Central Europ., 2016;17(3):793-814. doi: 10.5513/JCEA 01/17.3.1777.
13. Tamaš V, Bečvařova V. Development of consumer preferences on the signifi cant markets of pig meat. Acta Universit. Agric. Silvicult. Mendel. Brunen., 2013;61(7):2875-82. doi: 10.11118/actaun201361072875.
14. Merlino VM, Massaglia S, Borra D. Analysis of European consumer awareness for identifying animalfriendly meat. Quality - Access to Success. Supplement 2; 2019;20:388-95.
15. Wageli S, Janssen M, Hamm U. Organic consumers’ preferences and willingness-to-pay for locally produced animal products. Inter. J. Consum. Stud., 2016;40(3):357-67. doi: 10.1111/ijcs.12262.
16. Balassa BA. A stages approach to comparative advantage. Reprinted with permission from Economic Growth and Resources, edited by Irma Adelman, Proceedings of the Fifth Congress of the International Economic Association, Tokyo, Japan, 1977;4:121-56.
17. Balassa BA. A stages approach to comparative advantage. Staff working paper; no. SWP 256. Washington, D.C.: The World Bank. URL: http://documents.worldbank.org/ curated/en/811771468765933550/A-Stages-approachto-comparative-advantage.
18. Török Á. Export competitiveness and the catch-up process of Hungary (1996-2001). Competitiveness Review: An Inter. Busin. J. 2002;18(1/2):131-53. doi: 10.1108/10595420810874646.
19. Simo D, Mura L, Buleca J. Assessment of milk production competitiveness of the Slovak Republic within the EU- 27 countries. Agric. Econom., 2016;62(10):482-92. doi: 10.17221/270/2015-AGRICECON.
20. Livestock and Poultry: World Markets and Trade World Production, United States Department of Agriculture, Foreign Agricultural Service, October 11, 2018. URL: https://downloads.usda.library.cornell.edu/usda-esmis/ files/73666448x/mg74qq69r/j6731729p/livestock_ poultry.pdf
21. Livestock and Poultry: World Markets and Trade. United States Department of Agriculture, Foreign Agricultural Service, April 9, 2019. URL: https://apps.fas.usda.gov/ psdonline/circulars/livestock_poultry.pdf
22. Kravets IV. Modern tendencies of pork production development in Ukraine and in the world. Efektyvna ekonomika, 2018;(10). doi: 10.32702/2307-2105-2018.10.68.
23. Varchenko O, Hrynchuk V. Trends of forming agri-food chains of added value in Ukraine. International Scientifi c Days 2018. “Towards Productive, Sustainable and Resilient Global Agriculture and Food Systems”. May 16-17, 2018, Nitra, Slovak Republic. 881-91.
24. Khare V, Khare A. Modern Approach in Animal Breeding by Use of Advanced Molecular Genetic Techniques. Inter. J. Livestock Res. 2017;7(5):1-22. doi: 10.5455/ ijlr.20170404010154.
25. Sausheva OS, Gorin VA, Zemskova ES. Resourcesaving technologies in agriculture as a tool for ensuring food security: the experience of the European Union. Fundamentalnyie issledovaniya. 2016;6(1):212-7.
26. Kim JS, Ingale SL, Baidoo SK, Chae BJ. Impact of Feed Processing Technology on Nutritional Value of Pigs Feed: A Review. Anim. Nutrit. Feed Technol. 2016;16(2):181-96. doi: 10.5958/0974-181X.2016.00017.2.
27. Kostetsky YaI. Impact of globalization on transformational processes in agrarian sector of Ukraine. Scient. bull. of Uzhhorod Nat. Univer. 2016;6(2):28-31 (in Ukrainian).
28. Wallenbec A, Strandberg E, Rydhmer L, Röcklinsberg H, Ljung M, Ahlma T. Preferences for pig breeding goals among organic and conventional farmers in Sweden. Organic Agric. 2016;6(3):171-82. doi: 10.1007/s13165- 015-0125-3.
29. Kalinchyk S, Alekseenko I, Kalinchyk M. Problems of Ukrainian pig farming in the world market environment. Agrosvit. 2017;(12):9-14.
30. Nepriadkina NV. Foreign trade development between Ukraine and the EU in agricultural sphere: specifi cs and prospects. Visn. Harkiv. nats. un-tu im. V.N. Karazina. 2018:60-5.
31. Zhadko KS, Nosova TI. Problematic aspects of the effi - ciency of production and sales of pork meat in conditions of complex epizootic state. Efektyvna ekonomika. 2018. - 6 c.