AGRIBUSINESS DIGITALIZATION: TRENDS AND FUNDING SOURCES

• Main Authors: L. Nedilska, D. Oleniuk
• Format: Article
• Language: English
• Published: Zhytomyr National Agroecological University 2020-06-01
• Series: Наукові горизонти
• Subjects: digitalization; information technology; agriculture
• Online Access: https://sciencehorizon.com.ua/en/journals/6-91-2020/didzhitalizatsiya-agrobiznyesu-tyendyentsiyi-ta-dzhyeryela-finansuvannya

The article provides substantiation of the necessity to intensify the processes of agribusiness digitalization in Ukraine, as well as description of alternative funding sources. The purpose of the study was to determine the trends of agribusiness digitalization and explain its funding sources, and also to develop practical guidelines on how to use them. The purpose brought about the following tasks: to identify and substantiate possible areas in domestic agribusiness where digital technologies can be used; to determine the opportunities and threats of expansion of digital technology in the agricultural sector, and also weaknesses and strengths of agricultural digitalization; to outline the key stages of the implementation of digital technology in agribusiness; to create guidelines on how to use alternative forms of financing for digitalization of agricultural processes. Synthesis, abstract-logical and comparative methods were used in the course of the study. The main benefits of digitalization are specified. They include establishing of effective cooperation both within an enterprise and outside it. It has been found that at present domestic farmers do not use all digitalization opportunities due to the fact that they are not ready to apply fundamentally new approaches to economic activity. Another reason is that the financial resources for purchase and implementation of certain programs and machinery are limited, which considerably slows down the development of such enterprises. It is substantiated that one of the key stages of the implementation of digital technology in agribusiness is the search for funding sources to support digitalization process. It has been found that specific forms of financing of state-of-the-art technology have become internationally common. These are business incubators, funds of angel-investors, venture capital, crowdfunding, bonded loans, microcredit, public funding or various forms of state support. The authors have proposed how to promote these forms in rural areas in order to ensure funding not only for economic projects, but also for social and environmental measures.