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State support for the financing of innovative fruit and vegetable import substitution programmes

Author

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  • Yurii Pasichnyk

Abstract

The purpose of the article is to establish the specifics of state financing of innovations to support importsubstituted fruit and vegetable products. Using the developed research algorithm, the author analyzes and identifies some negative reasons that form the conditions for the import of fruit and vegetable products, including those that are manufactured and can be produced by domestic producers. It has been determined that one of the important reasons of the specified production import is insufficient budget financing of the agrarian and processing segments of the economy. The volume of budget financing of the agro-food segment of the economy in some European foreign countries, in particular, Italy, Turkey, France, Poland, Bulgaria and Ukraine was compared. It was revealed that domestic producers receive funds much less than foreign countries. Thus, in comparison to Poland, this support is only 10 percent. The main indicators of the functioning of the agri-food segment of the domestic economy have been evaluated and low wages have been identified, which is a significant problem and the reason for labour migration to other countries. The instability of the functioning of this segment has also been proved, which has manifested itself in a decrease in the GDP of agriculture, forestry and fisheries as a percentage by 2019, etc. The state of state financial support for agrarians and industrial producers over the past few years has been analysed and it has been revealed that this aid is provided chaotically, mainly based on the wishes of certain groups of deputies of the Verkhovna Rada of Ukraine. Moreover, it has been revealed that this support mechanism is formed without taking into account the real needs of producers, and large amounts of aid are provided in the form of loans. Funds for basic research, design work, and the construction of modern, innovative processing plants are also almost absent. It is drawn a conclusion that for improvement of such condition it is necessary to improve directions of the state support of the specified innovations

Suggested Citation

  • Yurii Pasichnyk, 2022. "State support for the financing of innovative fruit and vegetable import substitution programmes," Innovation and Sustainability Articles, Innovation and Sustainability, vol. 2(1), pages 34-43, March.
    • Handle: RePEc:cve:innsjn:v:2:y:2022:i:1:p:34-43
    DOI: https://doi.org/10.31649/ins.2022.1.34.43
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