FISHERIES DEVELOPMENT AND THE FORMATION OF THE FISH PRODUCTS MARKET IN UKRAINE AND IN THE CENTRAL AND EASTERN EUROPEAN COUNTRIES

Abstract

The fishing industry is an important component of the economy not only in Ukraine, but also in all Central and Eastern European countries at the present stage of development. Developing and implementing the innovative technologies in fish farming and fish processing require mandatory and constant analysis of the fish market infrastructure. In the fishing industry, trade plays an important role as an employment center, a food supplier, a source of income, a contribution to economic growth and development, and also for food security and nutrition. For many countries and numerous coastal, river, island and inland regions, fish exports are critically important to the economy. The purpose of the study is to find out a current state of the fishing industry in Ukraine and in the Central and Eastern European countries, the prospects for its development and to conduct a research of fish and fish products importexport. The problem of the fisheries economic development in Ukraine and in the Central and Eastern European countries has been considered in the works of many domestic scientists and is reflected in a number of Laws of Ukraine, state programs and legislative acts, but many issues remain unsolved.
Methodology. The state of fisheries in Ukraine has been researched, the amount of edible fish and fish products per capita by the population of Ukraine over the past 10 years has been carried out, and the volume of fish and fish products imports and exports in recent years in Ukraine has been analyzed. The catch volumes of fish and fish products in Europe in marine areas, inland waters, and the total volume of aquaculture production in the period from 2000 to 2018 in the Central and Eastern Europe countries have been studied.
Result. Since the beginning of the 21st century, Ukraine has lost its potential and fishing opportunities in the marine economic zones of other countries, as a result of which the production of aquatic biological resources was reduced to 220 000-250 000 tons per year from 2007 to 2013. As a result of the annexation of the Crimean Peninsula by the Russian Federation in 2014, the production of aquatic bioresources in Ukraine has further decreased from 225 000 tons in 2013 to 90 000 tons in 2014-2019. All this shows that the Ukrainian fishing industry market is not provided at the expense of its own resources. Therefore, Ukraine constantly imports products from the non-resident partners. Today, Ukraine imports about 90% of fish. This situation is due to the lack of a specialized fleet, processing industry, quotas in the neutral waters and poaching. In addition, the cost of the Ukrainian fish is higher than imported ones, so the products lose their competitiveness. Despite significant imports of fish and fish products to Ukraine, the country continues to increase its domestic products export. In 2019, export of fish products increased by almost 10% compared to 2018, and the Ukrainian producing companies continue to open new sales markets for their products in different countries of the world. Due to limited access to the open sea and a relatively small coastline, almost all Eastern and Central European countries are not among the leaders in fish industry and seafood production. To provide the population with fish and fish products in the countries of Central and Eastern Europe, fish are caught intensively in inland waters, as well as, this region is actively restoring its traditional aquaculture systems. In Central and Eastern Europe, the fish processing industry has made great strides in the quality of fishery products, sanitation, transport and supply chain traceability.
Practical implications. Currently, fish industry in almost all countries of Central and Eastern Europe is going through a problematic time that has developed due to a number of difficulties in the states, namely: financial ones, a breach of economic ties, the deterioration of the ecological status of the inland waters, an insufficient amount of work to restore fish stocks. This significantly affects the reduction in cultivating and catching the commercial fish in inland waters and in general. The results of the analysis of the economic situation of Ukraine in the fishing industry and the tendencies of possible changes indicate that negative patterns in its development will not be overcome in the absence of state support for the industry. To ensure the development of the fishing industry, the state must restructure the tax and customs policy, and its financing should be carried out at the expense of the state budget. Funding should also be provided for the organizations engaged in the fish stocks study, conservation and reproduction, as well as for the research organizations that carry out the thematic work of national importance. Many transition economies in Central and Eastern Europe have experienced declining in production intensity due to reduced fish farming costs. But in spite of everything, the fisheries of this region continue to grow and develop intensively.