Business-model of rural areas development in Ukraine

Purpose. The purpose of this paper is to study the economic aspects and justification of the business-model of rural areas development in Ukraine on the basis of farms, in particular family type, for the growth of agricultural production. Methodology / approach. In the process of the study, general scientific methods are used, in particular monographic – for complex and comprehensive study of the basic economic problems of rural areas development in Ukraine; analysis and synthesis – for determination of main factors and constituents of rural areas development on the basis of farms, including family farms; statistical – for the estimation of food stuffs potential market per 1000 habitants in rural areas; calculation-structural method – for determination the basic economic parameters of family farms development and other related industries, taking into account the criteria of extended reproduction, recoupment and economic interest. Results. The article assessed the food market potential capacity in rural settlements per 1000 habitants, according to which a production business-model of rural areas development has been proposed. This economic model is based on creation of the specialized family farms and related industries for providing food necessities of local population in main types of agricultural products. The economic indicators and criteria of successful farms development, in particular maximum scales of production, sales prices of products in the main directions of agribusiness, are defined. The sum of economic effect per one farm, which will contribute to the expanded reproduction of local agribusiness, is substantiated. Originality / scientific novelty. For the first time, a business-model of rural areas development in Ukraine on the basis of small business units for the production of agri-food products was proposed. The article presents the results of the study, which economically justify the specialized family farms development on certain directions of agribusiness with a focus on meeting the food needs of consumers in the internal market segments, which will contribute to employment growth and the socio-economic recovery of rural areas in Ukraine. Practical values / implications. The research result can be used as a framework of forming of national and regional programs of small agribusiness producers state support, in particular family farms, with the aim to realize the economic potential of agri-food industry in Ukraine.