DIRECTIONS OF DEVELOPMENT OF THE PROCESSING INDUSTRY OF THE AGRO-INDUSTRIAL COMPLEX OF UKRAINE

Abstract

The conducted analysis of the current state of Ukraine's agro-industrial complex (AIC) processing industry revealed deep structural problems that hinder the country's economic development. The low share of the processing industry in GDP, compared to neighboring countries, indicates insufficient economic diversification and its dependence on raw material exports. The study of Ukraine's processing industry relies on a comprehensive approach that combines statistical, comparative, and economic analyses. Statistical analysis allows for assessing the dynamics of the industry's development using data from the State Statistics Service of Ukraine. Comparative analysis, in turn, makes it possible to identify Ukraine's competitive advantages and disadvantages by comparing its indicators with neighboring countries. Economic analysis, focusing on value-added indicators and the investment climate, helps assess the industry's efficiency. It has been determined that one of the key problems is the high share of raw material exports, which leads to the loss of potential added value. This is particularly true for the agricultural sector, where a significant portion of grain and oil crops are exported without deep processing. Also, the export of mineral raw materials, such as titanium ore and refractory clays, limits the development of high-tech industries. The insufficient development of the processing industry also leads to high import dependence in key sectors of the economy, such as agriculture and construction. This creates risks for the country's economic security and limits opportunities for domestic production development. It has been determined that to overcome these problems, a comprehensive strategy aimed at stimulating the development of the processing industry is needed. This includes attracting investments, introducing modern technologies, developing infrastructure, and forming effective state policies. It has been determined that the key development directions are: increasing the share of the processing industry in GDP, reducing raw material exports and increasing processing, developing the production of high value-added products, meeting domestic demand for industrial products: It is necessary to increase domestic production volumes to reduce import dependence, and build new processing plants. The implementation of these measures will allow Ukraine to significantly develop the processing industry, increase the added value of products, create new jobs, and enhance the country's competitiveness in the global market.