Strategic development of sugar beet subcomplex

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STRATEGIC DEVELOPMENT OF SUGAR BEET SUBCOMPLEX

L.O. Kutsekon,

Ph.D., Associate Professor of the department of Economics of enterprise named by Prof. Romanenko I. N.

National University of Life and Environmental Sciences of Ukraine

Аннотация

Л.О. Куцеконь,

кандидат економічних наук,

доцент кафедри економіки підприємства ім. проф. Романенка І.Н.

Національний університет біоресурсів і природокористування України

СТРАТЕГІЧНИЙ РОЗВИТОК ПІДПРИЄМСТВ БУРЯКОЦУКРОВОГО ПІДКОМПЛЕКСУ

В статті досліджено організаційно-економічні фактори підвищення ефективності бурякоцукрового підкомплексу та його розвиток, як результат структурних змін, що відбулися в умовах становлення ринкової економіки. Розроблена модель проектованого бурякоцукрового кластера, що ґрунтується на поєднанні сільськогосподарських товаровиробників, цукрових заводів, посередників та суб'єктів інфраструктури, пов'язаних єдиним технологічним циклом виробництва цукрового буряка, його переробки та реалізації продукції, діяльність яких ґрунтується на максимальному узгодженні інтересів, глибокій безвідходній переробці сировини із отриманням висококонкурентних продовольчих продуктів та альтернативних джерел енергії. Запропонована стратегія розвитку бурякоцукрового підкомплексу на основі кластеризації підприємств з подальшим відродженням галузі, підвищенням конкурентоспроможності вітчизняного продукції та її виходу на зарубіжні ринки з можливістю наростання майбутнього потенціалу та забезпечення енергетичної безпеки країни.

Ключові слова: цукровий буряк, цукор, бурякоцукровий підкомплекс, стратегія.

The organizational and economic factors of the efficiency sugar beet subcomplex improve and its development as a result of structural changes that have been occurred in the conditions of market economics are researched in the article. The model of projected sugar beet cluster which are based on a combination of agricultural producers, refineries, brokers and business infrastructure related single technological cycle of production of sugar beet processing and marketing activities which are based on maximum harmonization of interests, deep processing of waste materials to obtain highly competitive food products and alternative energy sources is developed. The strategy of sugar beet subcomplex development is based on clustering and further revival of the industry, increasing the competitiveness of domestic products and their entry into foreign markets with the ability to increase of future capacity and ensuring energy security are proposed.

Problem statement and analysis of the major publications. As a result of economic relations reforming in Ukraine in recent years significant crisis has experienced that engulfed the all agricultural complex of state, affected on all sectors without exception, most of which have been highly costly and inefficient. A typical representative of such industries is sugar beet subcomplex.

This is especially important for regions where sugar beet production was the leading industry and an important source of cash income. Therefore, we should focus on eliminating the negative tendencies which lead to the increasing of sugar beet growing cost, loss and termination of the sugar mills. The real way out of the crisis in the industry is to develop a strategy for effective development of the sector which should be based on the combined interests of sugar beet production with significant social, economic and environmental effects.

Consequently, it has been an objective necessity to study the current state of beet sugar subcomplex and support a viable development strategy.

The development, operation and efficiency of sugar beet subcomplex, the relationship between processors and producers of raw materials have been studied by many domestic scholars, among them are V. Andreychuk, P. Borschevsky, S. Dusanovskyy, A. Zaets, A. Zayinchkovsky, E. Imas, M. Kodenska, N. Kondratiev, V. Lyskov, M. Lobas, I. Lukin, V. Poplavsky, N. Royik, P. Sabluk, V. Fitter, A. Stelmashchuk, I. Yaremchuk and other scientists.

However, in the economic literature organizational and economic factors of sugar beet subcomplex improving and its development as a result of structural changes that occurred in the conditions of market economy have been insufficiently studied. Questions of development strategy of enterprises subcomplex Ukraine beet sugar in the current market environment, due to the increasing openness of the economics of our country such as accession to the WTO have been aside the remaining. This background has predetermined the relevance of research.

The aim of the study is to develop an effective strategy for the improvement of sugar beet subcomplex enterprises based on a combination of agricultural producers, refineries, brokers and business infrastructure related with single technological cycle of production of sugar beet, its processing and sale of products whose activities should be based on the maximum coordination of interests, deep processing of waste materials in obtaining highly competitive food production and alternative energy sources in obtaining significant economic, social and environmental effects of the production of alternative energy sources.

Development of sugar beet subcomplex strategy includes forming around refineries of raw areas in different enterprises with using of cultivation intensive technology of sugar beet growing and as the result sugar plants should be consistently satisfied by raw materials and sugar beet producers will be able to obtain additional financial resources. Constant supply of raw materials at the sugar factory gives opportunity to maximize production capacity and promote best time processing of roots that affects the cost reduction 1c of sugar. However, during the formation of the primary areas optimal distance transport of sugar beet should be considered [1, p. 42].

The development strategy of sugar beet subcomplex enterprises should include the diversification of production for feeding complexes creation which are based on powerful sugar plants. Positive environmental factor of such integration is also that the company can do farming rotation, because sugar plants do not have possibility to do it separately. Another element of diversification is production of alternative energy. The advantage here is the ability to regulate the production due to market conditions, if the situation is unfavorable for the sugar sales, it is directed more raw sugar material for bioethanol production and vice versa [2, p.23]. However, the state should also create programs to support the production of ethanol by reducing the tax burden on people or the imposition of fines on companies that refuse to add ethanol to gasoline. An integral part of development strategy of beet sugar subcomplex enterprise is measures to improve the management of labor potential subcomplex involving high employment through its transformation of qualifications and duties, improving motivation in a deep integration and diversification [3, p. 28, 4, p. 16]. Nowadays, there are not clear integrating mechanisms that could ensure coordination of the interests of all stakeholders in the sugar industry.

The main factors which will have the greatest impact on certain aspects are improving of the technical and technological components of production based on a clear scientific basis, increasing the financing of production subjects of the market, the market mechanisms regulation. Another element of optimization is integrating the efforts of farmers and sugar beet factories which implies a relationship focused not only on the resale of raw materials, and much deeper relating issues to support agricultural enterprises, the introduction of the mechanism of prepaid products, providing them with fertilizers and resources. In addition to this, the potential of a cluster is greatly enhanced by deeper processing of sugar beet and achieving of high level of complexity. In sugar beet subcomplex main provisions of this growth lies in a complex using -sugar beet production and processed by new technologies. In the scientific literature on the subject the traditional approach has been dominated, according to it "the value of sugar beet is not limited to the production of sugar. Bagasse and molasses are received during beet processing. Bagasse is used for animal feed and the production of pectin glue used in textile production. Molasses is widely used in the manufacture of animal feed. It is the raw material for the production of ethanol, glycerol, nutritional yeast for the baking industry, lactic and citric acids "[5, 6, p. 8]. Director of Sugar Beet Research Institute in Gцttingen, Prof. Bernvard Merlender general reckons about the need to consider that the sugar beet is not only a raw material for sugar production, but also as an important element of energy security [5, 8. p. 56]. The main attention is put on the possibilities of sugar beet using for the production of ethanol, which in Europe has been seen as an important addition to the obligatory traditional gasoline consumption.

Thus, in assessing the benefits of biogas production from sugar beet subcomplex wastes, we have noted its high potential for cluster formation, one of the conditions for the functioning of which is as deep processing products and their wastes. Thus, on the basis of this we offer to create sugarbeet cluster in Cherkassy region, main its main task would be to ensure coordination of interests of all participants, as well as deep processing products and wastes in order to improve its efficiency. Total projected sugar beet cluster model has been presented in Fig. 1.

Given the previous parts of the national development strategy sugar-beet industry has already had all the prerequisites for its revival, entering foreign markets will further increasing of export potential.

Figure. 1. The model of sugar cluster:

1 - managerial influence, 2 - material flow beet, 3 - the processes associated with the provision of 4 - material flow of sugar production waste

5 - material flow of waste recycling sugar beet ( fodder, biogas, fertilizer ), 6 - material flow of sugar, 7 - cluster service.

Conclusions and recommendations for further research. Optimization of sugar beet production and processing, rational location of production and its concentration in favorable for growing sugar beet soil- climatic zones, restructuring of the sugar-beet production, decommissioning of wasted refineries, construction of new modern enterprises, organization of stable raw material zones, introduction of advanced science-intensive technology and efficient cultivation and harvesting of sugar beet seed and sugar beet processing and saving environmentally friendly technologies European level, fixed assets of sugar industry and sugar beet production, raising the technical level by the introduction of science and technology in deep integration and diversification of production will ensure the strategic development of sugar beet companies subcomplex followed by rebirth field, increasing economic efficiency, competitiveness and domestic sugar output for foreign markets with the possibility of its future potential growth and ensuring of energy security.

economic competitiveness sugar

Література

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