Formation of strategic management of hemp cultivation in a developing country: A case of Ukraine
-
Author(s)Liubov MykhailovaLink to ORCID Index: https://orcid.org/0000-0003-2628-5094
,
Andrii MykhailovLink to ORCID Index: https://orcid.org/0000-0003-0872-2334
,
Liudmyla KorenivskaLink to ORCID Index: https://orcid.org/0000-0002-7356-0450
,
Lyudmyla KhromushynaLink to ORCID Index: https://orcid.org/0000-0001-9134-9010
,
Marharyta ChuprinaLink to ORCID Index: https://orcid.org/0000-0002-3276-4473
-
DOIhttp://dx.doi.org/10.21511/ppm.19(2).2021.01
-
Article InfoVolume 19 2021, Issue #2, pp. 1-13
- 1131 Views
-
831 Downloads
This work is licensed under a
Creative Commons Attribution 4.0 International License
After a long period of decline and persecution, there is a revival and rapid development of the cannabis industry around the world: the use of this unique crop is expanding rapidly, and finally, it was transferred from a narcotic to an agricultural one (except for Ukraine). Nowadays, the Ukrainian hemp industry has practically gone unnoticed by the state, scientists, practitioners and society. At the same time, it has development prospects and can play a significant role for rural areas and the national economy. The paperis aimed at exploring the possibilities of growing hemp (Cannabis sativa L.) and justifying the need for strategic management of the development of the cannabis industry in Ukraine. Based on the analysis of hemp production, it is established that during the years of Ukraine’s independence, the area of hemp crops has decreased almost 8 times; the number of producers is limited; hemp processing plants do not function; the yield of technical hemp seeds has a slight tendency to increase andapproximates 6-7 kg/ha. The prospects for cannabis cultivation require building strategic management of the cannabis industry to address key issues and mitigate threats. The key elements of the production development strategy are identified as improving institutional and financial support at the state level. The main guidelines of strategic management of hemp cultivation are: simplification of regulation for producers; intensification of agribusiness entities; increasing production volumes; and improving the competitive environment in the hemp market. It is proved that the strategic development of the hemp industry requires developing hemp processing enterprises; disseminating knowledge among the population about the usefulness and benefits of this multi-purpose culture. To substantiate the effectiveness of strategic decisions, the algorithm was proposed for assessing the effectiveness of growing different types of hemp products by different technologies, which is carried out using economic and mathematical modeling.
- Keywords
-
JEL Classification (Paper profile tab)M11, O13, O18, Q16
-
References25
-
Tables1
-
Figures4
-
- Figure 1. Dynamics of acreage of industrial hemp in Ukraine and Sumy region, thousand hectares
- Figure 2. Technical hemp area by enterprises and institutions of Sumy region in 2019, hectares
- Figure 3. Yield of fiber and seeds of technical hemp in Ukraine, c/ha
- Figure 4. Algorithm for assessing the efficiency of strategic decisions in hemp cultivation
-
- Table 1. Data from the State Register of Industrial Hemp Varieties as of December, 2019
-
- Adesina, I., Bhowmik, A., Sharma, H., & Shahbazi, A. (2020). A Review on the Current State of Knowledge of Growing Conditions, Agronomic Soil Health Practices and Utilities of Hemp in the United States. Agriculture, 10(4), 129.
- Antonov, A. (2010). Udoskonalennia systemy upravlinnia silskymy terytoriiamy [Improvement of rural territory management system]. Derzhavne upravlinnia: udoskonalennia ta rozvyitok – Public administration: improvement and development, 10. (In Ukrainian).
- Bzhuska, Ya., Pyka, Ya. (2012). Rozumna specializatsiia rehionu [Reasonable specialization of the region]. Visnyk Natsionalnoho universytetu “Lvivska politekhnika”: Lohistyka. – Bulletin of the National University “Lviv Polytechnic”: Logistics, 749, 362-366.
- Carus, M. (2016). The European Hemp Industry. Retrieved September 10, 2018.
- Dukhnytsky, B.V. (2019). Potentsial rozvytku ahroprodovolchoho rynku Ukrainy [Development potential for the agro-food market in Ukraine]. Ekonomika APK – The Economy of Agro-Industrial Complex, 11, 27-34. (In Ukrainian).
- D’yakonova, I., Nikitina, A., Sukhonos, V., & Zhuravka F. (2018). Methodological bases of estimating the efficiency of economic security management of the enterprises in the global environment. Investment Management and Financial Innovations, 15(2), 145-153.
- Foray, D., David, P.A., & Hall, B. (2009). Smart Specialization: The Concept. Knowledge for Growth. Prospects for Science. Technology, and Innovation. Selected papers from Research Commissioner Janez Potochnk’s Expert Group, 20-24.
- Gilyazetdinov, R., Zhuplatova, L., & Moher, Y. (2014). Naukovyi suprovid lionu ta konopli [Scientific support of flax and hemp industries]. Lubiani ta tekhnichni kultury: Zbirnyk naukovykh prats – Bast and industrial crops: Сollection of scientific works, 3(8), 155. Sumy: Ellada Publishing House. (In Ukrainian).
- Ihnatiuk, O. (2018). Chomu ukrayinski vyrobnyky konopel zalyshaiut vysokorentabelnyi biznes [Why Ukrainian cannabis producers are leaving a highly profitable business]. (In Ukrainian).
- Inverson, L. L. (2000). The Science of Marijuana (p. 302). USA: New York, Oxford University Press.
- Kravets, K. (2014). Konceptsiia strategichnoho upravlinnia ahrarnymy pidpryiemstvamy Luhanskoi oblasti. [The concept of strategic management of agricultural enterprises in Luhansk region]. Ekonomichnyi analiz – Economic analysis, 16(2), 98-104.(In Ukrainian).
- Marchenko, J. (2015). Napriamy vykorystannia konopleproduktsii u sviti. Lubiani ta tethnichni kultury [Areas of use of hemp products in the world. Bast and industrial crops]. Zbirnyk naukovykh prats – Сollection of scientific works, 4(9), 159-166. Sumy: Ellada Publishing House. (In Ukrainian).
- Marinchenko, I., & Primakov, O. (2015). Ekonomichni aspekty vyrobnytstva konopel [Economic aspects of hemp production]. Bast and industrial crops: Сollection of scientific works – Lubiani ta tekhichni kultury: Zbirnyk naukovykh prats, 4(9), 127-136. Sumy: Ellada Publishing House. (In Ukrainian).
- Migal, M., Pylypchenko, A., Sytnyk, V., & Orlov, M. (2019). Nasinnytstvo konopel [Hemp seed production] (p. 264). Sumy, FOP Shcherbina I.V. (In Ukrainian).
- Mykhailova, L., & Korenivska, L. (2019). Haluz konopliarstva v systemi innovatsiinoho rozvytku silskykh terytorii. Problemy i perspektyvy innovatsiinoho rozvytku ahrarnoho sektora ekonomiky v umovakh intehratsiinykh protsesiv [Hemp industry in the system of innovative development of rural areas. Problems and prospects of innovative development of the agricultural sector of the economy in terms of integration processes]. Materials of International Science – Practical Conference, 90th Anniversary of Economics Education in KhNAU named after V.V. Dokuchaev (pp. 94-97). October 3-4, Part 1. Kharkiv: KhNAU named after V.V. Dokuchaev. (In Ukrainian).
- Mykhailova, L., Korenivska, L. (2020). Otsinka ekonomichnoho potentsialu vyrobnytstva konopel v Ukraini [Evaluation of the economic potential of the hemp production in Ukraine]. Ekonomika APK – APK Economics, 1, 33. (In Ukrainian).
- Mykhailov, A., Makarova, V., Kapinos, N., & Petrova, N. (2020). Land management’s development in the period of land relations reform in Ukraine. Estudios de Economía Aplicada, 38(4).
- Patytska, K. (2019). Stratehiia smart-spetsializatsii v konteksti zabezpechennia konkurentnospromozhnosti rehionu: teoretychnyi aspekt [Smart specialization strategy in the context of regional competitiveness: theoretical aspect]. Efektyvna ekonomika – Efficient economy, 11. (In Ukrainian).
- Qehaja, A. B., Kutllovci, E., & Pula, J. S. (2017). Strategic Management Tools and Techniques: A ComparativeAnalysis of Empirical Studies. Croatian Economic Survey, 19(1), 67-99.
- Stratehiia rehionalnoho rozvytku Sumskoi oblasti na period do 2027 roku [Strategy of regional development of Sumy region for the period up to 2027]. (2020). Plan zakhodiv na 2021–2023 roky z realizatsii stratehii rehionalnoho rozvytku Sumskoi oblasti na period do 2027 roku – Action plan for 2021–2023 to implement the strategy of regional development of Sumy region for the period up to 2027. (In Ukrainian).
- Tyler, M., Shepherd, J., Olson, D., Snell, W., Proper, S., & Thornsbury, S. (2020). Economic Viability of Industrial Hemp in the United States: A Review of State Pilot Programs. Economic Information Bulletin, EIB-217. U.S. Department of Agriculture, Economic Research Service.
- Ukrainian Institute for Plant Variety Examination (UIPVE). (2019). Derzhavnyi reiestr sortiv roslyin, prydatnykh dlia poshyrennia v Ukraini [State Register of Plant Varieties Suitable for Distribution in Ukraine]. (In Ukrainian).
- Vilcina, A., Grinberga-Zalite G., & Makovska, K. (2014). Development of hemp industry in the European Union and Latvia. Regional Formation and Development Studies, 14(3), 199-206.
- Yatsyuk, O. (2018) Smart-spetsializatsiia rozvytku rehionu yak vazhlyvyi napriam pidvyshchennia jogo konkurentospromozhnosti ta innovatsiinoi aktyvnosti [Smart specialization of the region’s development as an important direction of increasing its competitiveness and innovation activity]. Naukovyi visnyk Ivano-Frankivskoho natsionalnoho tekhichnoho universytetu nafty i hazu. Seriia: Ekonomika ta upravlinnia v naftovii i hazovii promyslovosti – Scientific Bulletin of Ivano-Frankivsk National Technical University of Oil and Gas. Series: Economics and Management in the Oil and Gas Industry, 2, 54-60. (In Ukrainian).
- Zhuplatova, L. M., Marynchenko, I. O., Moher, Yu. V., & Prymakov, O. A. (2015). Lionarstvo ta konopliarstvo: suchasnyi stan i perspektyvy rozvytku [Flax growing and hemp growing: current state and prospects of development]. Innovations in flax and hemp – 2015: materials of the fourth research and practice conference (pp. 3-10). Sumy: Ellada Publishing House. (In Ukrainian).
-
The prospects of integration of the advertising market of Ukraine into the global advertising business
Svitlana Dombrovska ,
Viktoriia Shvedun ,
Volodymyr Streltsov ,
Kyrylo Husarov
doi: http://dx.doi.org/10.21511/ppm.16(2).2018.29
Problems and Perspectives in Management Volume 16, 2018 Issue #2 pp. 321-330 Views: 1134 Downloads: 222 TO CITE АНОТАЦІЯAdvertising expands and improves sales channels, accelerates money turnover, thereby increasing overall effectiveness of functioning of national economy and its integration into the world economy in general. The analysis of the current trends and future prospects of management of the advertising market of Ukraine at the world level is carried out in the article. In particular, the analysis of the current structure of the world advertising market is made. The assessment of retrospective tendencies of development of the advertising and communication market of Ukraine is carried out. The identification of perspective volumes of the advertising market of Ukraine is made. The forecast of perspective volumes of the advertising market of Ukraine within the next three years is made. In general, the given research allows to allocate problems of the modern advertising market of Ukraine and offers the ways of improvement of the state advertising policy of Ukraine.
-
Status and prospects for the development of credit unions in Ukraine
Problems and Perspectives in Management Volume 15, 2017 Issue #4 pp. 124-133 Views: 1064 Downloads: 219 TO CITE АНОТАЦІЯCredit unions increase social orientation and efficiency of the market economy by providing their members with necessary financial services on a non-profit basis. Unfortunately, the role of credit cooperation is underestimated in Ukraine. The article investigates factors, condition and prospects for the credit unions’ development as an important component of Ukrainian economy. Both optimistic and pessimistic scenarios of credit unions’ development in Ukraine have been provided based on forecasts involving methods of analytical equalization of dynamic series, correlation and regression analysis and extrapolation. Analysis of the main indicators of credit unions’ activity in Ukraine between 2004 and 2016 made it possible to detect that between 2008 (when indicators were the highest) and 2016 there was a downward trend in the number of credit unions (by 41%), membership (by 76%), total assets (by 66.5%), deposit and loan portfolios (by 79 and 68%, respectively) with a relative stability of capital ratio (by 39%). Creating a cooperative cluster which will be able to combine the material, monetary and labor resources of all major types of cooperatives in the country at the regional level has been outlined as one of the means to increase the credit unions competitiveness in Ukraine. Therefore, the purpose of the article is to assess the state and forecast trends in the development of credit unions in Ukraine in order to identify the prospects for their functioning in the future.
