ECONOMIC POTENTIAL OF AGRICULTURAL ENTERPRISES IN THE FOOD SECURITY SYSTEM OF UKRAINE

Abstract

The article is devoted to the study of the economic potential of agricultural enterprises and the determination of its role in ensuring the food security of the state in the face of modern challenges and economic instability. It is noted that over the past five years (2021–2025), Ukraine’s agricultural sector has undergone a complex stage of transformation, characterized by profound structural changes, restructuring of logistics routes, damage to infrastructure facilities, land reform, a significant reduction in labor potential, and a gradual transition to sustainable production models. It is demonstrated that Ukrainian agricultural enterprises form the basis of agricultural production (71% of total output); however, in 2025 their production decreased by 23,4% compared to the pre-war period, mainly due to a decline in crop production, caused by a number of factors, the main of which include the temporary occupation of part of Ukraine’s territories, reduced crop yields, an increasing gap between world and domestic prices, and rising production costs driven by higher logistics expenses, insurance costs, and increased risks. The study reveals that Russia’s military aggression led to a deterioration in the financial performance of agricultural enterprises; however, the positive dynamics observed in 2024 indicate a gradual recovery of their economic activity and adaptation to modern economic conditions. It is established that Ukraine provides its population with most basic food products, particularly poultry meat, vegetables, and certain types of meat products. At the same time, there are issues related to ensuring adequate consumption of dairy products, fruits, and beef in accordance with rational consumption standards. Moreover, one of the key risks to food security is considered to be import dependence on fruit and berry products. The scientific novelty lies in the generalization of the role of the economic mechanism in ensuring the population’s food supply under conditions of war and economic instability. The practical significance of the obtained results lies in their potential use for improving the economic potential of agricultural enterprises, strengthening food security, and enhancing the country’s economic resilience.