ORGANIZATIONAL AND ECONOMIC MECHANISM FOR BUILDING THE CAPACITY OF AGRICULTURAL ENTERPRISES WITHIN GLOBAL AND REGIONAL INTEGRATION CHAINS

Abstract

The article substantiates the theoretical, methodological, and practical foundations for operating an organizational and economic mechanism designed to build the potential of agricultural enterprises within global and regional value chains (GVCs). It is proven that the extensive commodity-export model of Ukrainian agribusiness has reached its economic limits due to military-logistical disruptions, surging freight costs, and a rising share of unprofitable farms, which reached 20.25% in 2023. The study conceptualizes the essence and multi-component architecture of the proposed mechanism, integrating organizational-institutional, production-technological, economic-financial, infrastructurallogistical, and ecological-circular subsystems. The implications of Ukraine’s European integration and the structural reform of the EU Common Agricultural Policy (CAP 2028–2034) are thoroughly analyzed. The introduction of the Direct Agricultural Beneficiary Income Support (DABIS) instrument—with a strict EUR 100,000 capping limit per enterprise—positions mid-sized agricultural enterprises (averaging ~485 ha) as the primary beneficiaries of direct payments, while pushing large agro-holdings toward commercial deep bioprocessing, biomethane production, and renewable energy. Practical tools for potential enhancement are substantiated across four upgrading vectors based on the framework of J. Humphrey and H. Schmitz: process upgrading (precision agriculture, Strip-Till, biocogeneration), product upgrading (certified organic farming, non-GMO crops, ISCC certification), functional upgrading (overcoming bottlenecks in the “hidden middle” through farm-level storage, processing, packaging, and direct foreign trade), and inter-sectoral upgrading (biomethane industry integration and carbon farming credit monetization). Ultimately, implementing state-level institutional alignment with EU registries, expanding agricultural receipts, and developing multimodal logistics will lay a resilient foundation for long-term competitiveness, transforming Ukrainian agribusiness from a raw-material supplier into a high-value participant in international markets.