Implementation of innovations in oil and fat production

  • Anatasiya Brytvienko Berdyansk University of Management and Business
Keywords: diversification, investment, innovation, oil and fat products, crop production, agriculture, trend

Abstract

Relevance of the research topic. Since competition and innovation are interrelated, at the current stage of development of the Ukrainian economy the problem of increasing the profitability and competitiveness of sunflower seed production based on the development of innovative processes in the industry remains highly relevant. Those producers of sunflower seeds, who were the first to apply innovations, have the opportunity to reduce the cost of manufactured products, which contributes to strengthening their position in a competitive environment and increasing their survival in the modern market. Formulation of the problem. The downturn of business activity, the domestic economy is experiencing, is usually accompanied by a decrease in the cost of developing innovations. However, an analysis of the activities of large firms, especially in oligopolistic markets, both high-tech and less technologically advanced, shows that for many of them the development of innovation retains its priority value even during periods of unfavorable economic conditions. This allows you to achieve strategic advantages, enter new markets and consolidate positions in the industry after the end of the crisis. Selection of unexplored parts of a common problem. The oil and fat complex represents a wide range of products, the use of new technologies, a high level of profitability and competitiveness, the attraction of foreign deposits, and an orientation towards the export of raw materials. Investment in the development of oil-producing enterprises, entrenched in the market, in fact creates additional natural barriers to their entry into the market, which leads to a change in the concentration and degree of competitiveness and provokes the emergence of new phenomena that require further research. Statement of the problem, the objectives of the study. The purpose of the study is to determine the theoretical aspects of innovation in the activities of agricultural enterprises of the oil and fat complex. The goal defines the following tasks: to consider the categories of enterprises, covers the oil and fat complex; provide a scheme for the extensive development of the industry; explore the basic conditions for the long-term development of the enterprise and consider a scheme for meeting prospective market needs; highlight the benefits of innovation; to substantiate the main trends and directions of development of innovation and investment activities of enterprises producing oil and fat products. Method or methodology of the study. The methodology of the study is to identify approaches to the definition of "innovation", to determine the totality of the methodological components of the appraisal apparatus and justify and highlight their advantages, given the logistics infrastructure of the oil and fat complex. The presentation of the main material (results). The categories of enterprises are considered, covers the oil and fat complex. The scheme of extensive development of the industry. A necessary condition for the long-term development of the enterprise has been described and a scheme for meeting prospective market needs has been considered. Highlighted the benefits of innovation, stimulate agricultural producers to introduce innovations. The logistics infrastructure of the oil and fat complex and the main trends and directions for the development of innovation and investment activities of manufacturing enterprises are presented. Domestic producers of oil and fat products should take into account the global development trends of the global oil and fat complex in the development of an innovation strategy plan, investing in new products, such as high-viscosity sunflower, rapeseed or soybean oil. The scope of the results. The results of the study can be used in the activities of agricultural enterprises producing oil and fat products, as well as in the work of firms representing the food industry. The presentation of the main material (results). The categories of enterprises are considered, covers the oil and fat complex. The scheme of extensive development of the industry. A necessary condition for the long-term development of the enterprise has been described and a scheme for meeting prospective market needs has been considered. Highlighted the benefits of innovation, stimulate agricultural producers to introduce innovations. The logistics infrastructure of the oil and fat complex and the main trends and directions for the development of innovation and investment activities of manufacturing enterprises are presented. Domestic producers of oil and fat products should take into account the global development trends of the global oil and fat complex in the development of an innovation strategy plan, investing in new products, such as high-viscosity sunflower, rapeseed or soybean oil. Conclusions according to the article. The consumption of “healthy” natural vegetable oils is increasing in the world, particularly in Europe, Asia, and North and South America. The current trends towards an increase in the volume and qualitative changes in the structure of consumption of edible vegetable oils and fats make it possible to predict the future shortage of them in both developed and developing countries. The constant growth of the global demand for edible vegetable oils creates the prerequisites for the activation of the search for new investment and innovative solutions by the subjects of this market. Domestic producers of oil and fat products should take into account the global development trends of the global oil and fat complex in the development of an innovation strategy plan, investing in new products, such as high-viscosity sunflower, rapeseed or soybean oil.

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References

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Author Biography

Anatasiya Brytvienko, Berdyansk University of Management and Business

Ph.D. in Economical Science, Associate Professor Department of Economics and Finance

Published
2019-06-19
How to Cite
Brytvienko, A. (2019). Implementation of innovations in oil and fat production. University Economic Bulletin, (42), 49-58. https://doi.org/10.31470/2306-546X-2019-42-49-58
Section
Knowledge Economy, Innovative Economy