ECONOMIC DEVELOPMENT OF AGRICULTURAL FOOD ENTERPRISES ON AN INNOVATIVE BASIS

. The agri-food sector has been and remains the basis of Ukraine’s economy. Today, in the face of industrial decline and the all-encompassing process of deindustrialization of the economy, agri-food enterprises remain stable market players. Despite obstacles to development, agro-holdings have long dominated the agri-food market, accumulating significant land and financial resources. The largest companies are Kernel, UkrLandFarming, MHP, Agroposperis and Astarta-Kyiv, whose land banks exceed 200,000 hectares. These companies employ almost 75,000 workers. Agricultural holdings invest in their own development. One of the priority areas is innovative development. It is innovation that provides stability and a future for companies. The largest innovation fund is owned by Kernel, which spent $ 2.7 million, MHP — 2.5, AP Group — 2, Astarta-Kyiv, Harveast and IC — 1, Epicentr Agro — $ 0.42 million. Among these companies, Harveast and IC made the highest investments in innovative development per 1 hectare of agricultural land — 8.1 dollars, MHP — 6.9 $, Kernel and AP Group — 5 $, Astarta-Kyiv — 4 $ and Epicentr Agro — 3.8 $ per 1 hectare of agricultural land. However, despite these achievements, a mark of $ 50 / ha is considered acceptable. Due to the implementation of innovative measures Astarta-Kyiv saved about 15 million dollars in 4 years, Agroprosperis several times increased the efficiency of decisions made by agronomists, UkrLandFarming increased yields by a quarter. In general, according to experts, 80% of all spending on innovation is spent on computerization and automation of accounting processes, electronic document management, and protection of information from theft. Our study allowed us to analyze the work of company management in terms of areas of innovative development and to derive an indicator of integrated innovative development by segments and individual companies. This approach can be extrapolated to small and medium-sized agri-food enterprises.

Introduction. Agriculture and related food businesses remain one of the main drivers of any country's economic development, especially in the context of a comprehensive process of economic deindustrialization. Today agri-food enterprises provide the population of Ukraine with foodstuffs, labor for the countryside population, and pay taxes to the budget. The increase in the effectiveness of economic activity occurs against the background of an effective mechanism for using available and borrowed financial resources. Despite the lack of state support, companies are implementing the latest advances in science and technology in their daily activities.
Literature review and problem statement. The issue of innovative development of agrifood enterprises includes the disclosure of such aspects as factors of innovative development [1], features of innovation [2], principles of state innovation policy [3], prospects of innovation development [4], socio-economic mechanism of innovation development [5; 6], risks of innovative development [7], strategies of sustainable development [8], etc.
The transformation of agriculture is influenced by the following factors [9; 10]: • instability of food supply and its shortage in the world; • the introduction of computerization and automation of production processes frees and relocates a large number of people employed in agriculture; • improper control of the level of food security; • negative impact on the environment; • the functioning of trade intermediaries (traders) in the market reduces the competitiveness and economic efficiency of enterprises, etc. It is in this area that innovations should be stimulated by the state and introduced in the activities of agri-food enterprises.
At the same time, there is a huge innovation gap between the economic development of small and large agricultural enterprises (agricultural holdings), due to both the scale of operation and financial opportunities in favor of the latter [11].
The spread of innovation in the agri-food sector requires the transformation of wildlife, conservation of biodiversity, ensuring the reduction of environmental pollution and food security with possible discussions and debates in the scientific community.
The purpose of the study. The aim of the article is to study the complex impact of innovations on the economic development of agri-food enterprises.
Methodology research. For the purposes of the research, we used the scientific achievements of well-known domestic and foreign scientists and specialists focusing on a narrow segment of research and those who consider innovation more broadly as one of the elements of economic stability of the enterprise. For the purposes of analysis and synthesis, technical and economic calculations and evaluation of enterprises using official statistics and data from the flagship companies were used.
Research results. The concept of innovative development is quite common in science. We understand it as a system of measures aimed at introducing new products for the agri-food enterprise, technologies, solutions, etc., which were not previously involved in its direct activities.
It is necessary to distinguish this form of innovative development from the common opinion about the diffusion of innovations in the economy or industry, and as a consequence, their automatic transfer to enterprises, the so-called innovations. Therefore, the development or acquisition and realization or implementation of innovations in the enterprise is the first evidence of changes in its technological structure, updating the material and technical base, the use of the latest advances in selection and genetic engineering and so on.
Agro-food enterprises accumulate huge agricultural lands, influencing the social sphere of rural settlements, providing work to village population, improving tillage technology, introducing their own or purchased plant and animal varieties into agricultural activities, building production and logistics infrastructure, etc. (Table 1). As it can be seen, not all companies provide public financial statements for various stakeholder groups (UkrLandFarming, Continental Farmers Group, Harveast). At the same time, almost 67% of these agricultural holdings submit financial statements of major or their integrated companies. Despite the constant transformations and turbulence of the economic environment, agricultural companies are demonstrating the profitability of doing business. Part of the costs incurred include the costs of innovations, novations, modernization and other business processes.
In [12] the authors propose to use two types of innovations (to increase productivity and minimize production risks) in the areas of selection and breeding and farming practices. However, this approach is somewhat narrow and may not fully cover all issues related to the operation of agricultural enterprises.
Researchers [13] propose the following management decisions for innovative development of agri-food enterprises, namely: focus on small farms, direct communication between seller and buyer, environmental innovation and alternative sources of financing for agriculture. Through the implementation of this system small and medium-sized enterprises that do not belong to agricultural holdings develop, and thus provide farmers with self-employment, food and basic or additional income from the sale of all or residual products.
In the conditions of large-scale agricultural production, the dominance of agricultural holdings is undeniable. This thesis is confirmed by the colossal capital investments in the innovative development of agricultural holdings and their large-scale utilization in various areas of business ( Table 2). The most common areas of innovation are: logistics, trade and infrastructure (100% of companies) provide construction and operation of paved roads, line and port elevators, etc.; vertical integration and diversification of business (100%) helps to expand the scale of doing business, build or purchase processing facilities, etc.; environmental protection (100%) provides an attitude of care towards land, water resources, biodiversity, reducing the amount of applied plant protection agents, toxic chemicals, pesticides, etc.; support of local communities (100%) provides an opportunity to support existing and develop new infrastructure of settlements, social support, culture, sports, medicine, etc.; technical and technological changes (100%) introduce new types of techniques and technologies of tillage, production, keeping animals and poultry, differentiated application of fertilizers and seeds, etc.; smart technologies and digitalization (100%) increase the efficiency of general business processes (Big Data, drones, satellite monitoring technologies, automation of accounting processes, etc.). Many companies (89%) have in their structure a livestock system that requires the cultivation and production of feed, which significantly reduces the cost of production. Selection and livestock breeding processes are used by 78% of these companies, providing not only their own production processes, but also selling their products on the market. Product processing (78%) provides agricultural holdings with additional value, which is used for self-financing of business. Research and development (89%) realize the potential of enterprises in creating new laboratories, patenting inventions and developments, granting or obtaining licenses, franchising and so on.
The most innovative agricultural holdings in Ukraine are considered Kernel, AP Group, MHP, Astarta-Kyiv, IC, Harvest and Epicentr Agro [14] (Fig. 1 and 2).  • introduction of low-waste and non-waste production technologies, reuse of production waste [19; 20]; • use of zero tillage technology (with a transitional stage -minimal tillage). Today, about 7% of all fields in the world are cultivated using No-till technology. This technology gives a tangible economic effect (costs are reduced by an average of 12%, equipment -1.5 times, wages -1.6, fuel -2.2 times, yields increase 3-5 times), includes agricultural protection measures (reduction of water and wind erosion) [21]. According to Goldman Sachs, the total global market for precision farming technologies is $ 240 billion [22]. The system of precision agriculture in Ukraine is used by about 30% of large agricultural companies; • construction of a closed production cycle based on the use of processes of vertical integration, diversification and acquisition and absorption of enterprises of related sectors of the economy, etc. In particular, agriculture is involved in a number of goals to be achieved by 2030 in a very significant (and safe) way: reduction of pesticides by 50%, reduction of fertilizers by 20%, sales of antimicrobials for livestock by 50% and aquaculture, achieving no less than 25% of agricultural land by organic farming, conversion of at least 10% of agricultural land into areas with high biodiversity and protection of at least 30% of rural and marine areas [23][24][25].
Conclusions. Despite the general economic situation in Ukraine, the agri-food sector remains one of the dominant industries. Progressive development in the direction of increasing land areas and assets of agricultural companies has led to the phenomenon of agricultural holdings. The latter dominate in agriculture and introduce the latest and most up-to-date management solutions, technologies, equipment, digitalization of business processes in everyday activities.
The study allowed us to divide and disseminate the conclusions of integrated innovation development in two directions: innovative development of the industry and separate development of agricultural holdings. Of course, the author's vision above can be used to analyze the functioning of large agricultural companies and may not coincide with the trends of innovative development of small and medium-sized agri-food enterprises. However, we consider it possible to extrapolate the analysis data to the majority of agri-food market participants.
These facts and analysis have shown the high efficiency of implemented innovative solutions within many agricultural holdings. Creating our own software, implementing GPS navigation, precision farming systems, the latest advances in digitalization have significantly increased productivity, crop yields and animal productivity, reduced costs and losses of material, technical and financial resources, which several times increased business process management.