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Project risks analysis in agricultural complex

Oksana Denchyk, Dmytro Bedrii, Serhii Savchenko

Abstract

Agriculture is the field of the national economy that takes the priority in Ukraine. The strategy of its joining to the world trade/business organizations, the intensification of the process of globalization, the liberalization of the trade require the prompt adaptation to the new and constantly changing market conditions. The ability to adjust in good time both initial aims with the corresponding tasks and the ways how to gain them are of the primary importance for agriculture because the specific industrial risks may exist at the same time with the ordinary factors of some risk. The risk management in the projects of large agricultural enterprises and corporations was used in practice. However, small enterprises aren't going to use the project approach in further. The purposes of the research are to identify and analyze the risks of the agricultural projects in stock-breeding and in pig-breeding in particular depending on the size of the enterprise and also to examine the reducing of some risks and some consequences accordingly. The implementation of the agricultural projects including any other ones is impossible without the risks' accounting. Risk Management may be defined like the art and science of the risk analysis with the following arrangement of some means that may eliminate or minimize the risk speaking about the project objectives. Production, marketing, financing, institutions and a man are the most widely spread risk resources in the agricultural projects. The risks and their influence into the projects of the stock-breeding should be considered in details. The risks were identified and described for large, medium and small organizations. A quantitative analysis of some risks was carried out for the pig-production units different in size. The risks' importance evaluation meaning the priority for the pig-processing is carried out using the probability matrices. All types of risks are common for all agricultural enterprises but the power and consequences aren't similar for the enterprises different in size. The corporate structures in the agricultural sector are the holders of some advantages inaccessible for other participants of the economic relations. Small and medium-sized individuals of the economic activity are very vulnerable for the risk. The integration in the form of Cooperative Association, unions and other forms of the joint activity is proposed to reduce some business risk. The establishment of the advisory services for small and medium-sized agricultural enterprises is also proposed

Keywords:

project, method, risk, risk management, agribusiness projects, risks in pig production

Retrieved from Volume 22, No. 1, 2017

Pages 100-109

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References Suggested citation

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Suggested citation

Denchyk, O., Bedrii, D., & Savchenko, S. (2017). Project risks analysis in agricultural complex. Bulletin of Cherkasy State Technological University, 22(1), 100-109.

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