Implementing the resource potential sustainability of small-scale agricultural entities in cooperative associations of Ukraine

Natalia Trusova, Petro Makarenko, Tetiana Popova, Nataliia Pochernina and Yuliia Karas

RIVISTA DI STUDI SULLA SOSTENIBILITA', 2022, vol. XII, issue 2, 323-345

Abstract: The aim of the study is to study the functional features of peasant farms in Ukraine and the use of their resource potential, taking into account their regional characteristics and main trends in the Ukrainian economy. The article introduces the process of exploiting the resource potential of small-scale agricultural entities in Ukraine in terms of sustainable development. The materials of this article are im-portant because of the economy of Ukraine, including the agricultural sector, should be developed by European-style innovations to accelerate the process of Ukraine?s admission to the European Union. The theory of family-and-labor economy was used as a methodological basis of the research. To assess the influ-ence of the basic components of the resource potential of farms on their operation efficiency, a standard Cobb-Douglas production function is applied. The research analyses trends of agricultural sustainable development in the EU (European Un-ion) countries and Ukraine along with the factors determining the specific func-tioning of each sector. To study the regional functional features of farms, it was built a resultative image of the production function for the gross output of agricul-tural production in the clusters. The absolute dependence of the rating of the re-source potential of farms on its production component is identified; the activity of peasant households is based on an intensification principle, on which well-being depends. An attempt to predict the economic activity of small-scale agricultural entities in Ukraine was made both for individual and cooperative entities. The re-search shows that in the case of active development of agricultural cooperatives, the influence of peasant farms on the national food market, and well-being will be growing as well as the share of entities engaged in commodity production.

Date: 2022
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