The corn market in Ukraine and the economic efficiency of the development of the deep corn processing sector

Abstract

The aim of the study is to provide a comprehensive justification of the technological, market, and organisational and economic foundations for the formation and development of deep corn processing sector in Ukraine, as well as to identify the factors that determine the effectiveness of bioeconomic enterprises in the context of intensifying global competition and structural transformation of the agricultural sector.

Research methods. The research methodology consists of a set of methods for systematic analysis of structural, institutional and market transformations in the deep corn processing sector. Analytical, general and abstract methods were used, as well as economic and statistical tools: structural-dynamic and comparative analysis to assess production and exports, graph analytical methods to visualise trends, and causal analysis of the impact of war and global volatility on the sector's performance. This approach combines macroeconomic, sectoral and logistical levels of analysis, providing a comprehensive assessment of the prerequisites and prospects for the development of deep corn processing sector in Ukraine.

Results. It has been established that in 2023, corn production in Ukraine amounted to 28.1 million tonnes (an increase of 7.9% compared to 2022), with domestic consumption accounting for only 20%. It has been calculated that the development of bioethanol, biochemical and food processing could provide additional domestic demand of 3–5 million tonnes. It has been found that the dominance of the raw material model hinders the formation of high added value and technological autonomy, while deep processing increases competitiveness and energy security. Methodological principles have been developed for assessing the efficiency of production processes (profitability, capacity utilisation, added value of products) and forecasting structural changes in the market.

Scientific novelty. For the first time, a systematic approach to assessing the efficiency and investment attractiveness of deep corn processing sector has been integrated, taking into account logistical, technological and market constraints.

Conclusions and practical significance. The proposed methodological principles allow for the formation of an effective model of deep corn processing sector, optimisation of resource use and increased sustainability of the agricultural sector. The implementation of the results will contribute to the modernisation of processing capacities, diversification of export routes and the development of high-tech bioeconomic products.