GRANT ASSISTANCE TO EXPORT-ORIENTED ENTERPRISES FROM THE USAID AGRICULTURAL AND RURAL DEVELOPMENT (AGRO) PROGRAM DURING WAR

Abstract

Introduction. The article examines the AGRO program in detail, aimed at supporting Ukrainian companies with export-oriented strategies in the field of grain, oil and leguminous processing. Purpose. The study details the goals and priorities of the program, namely: increasing the volume of procurement and processing of raw materials, developing systemic sales channels, increasing productivity and entering new export markets. It was emphasized that the program is characterized by the fact that the implementation of the financed projects will include: an increase in the volume of grain, oil and leguminous processing for export with added value by 25% during the term of the project; expansion of sales channels and markets for finished products with a focus on the countries of the EMEA region; development of partnerships to create a competitive production and sales cycle, taking into account the geography of raw materials, optimization of supply chains, reduction of logistics costs and energy efficiency; implementation of the contract cultivation business model for farmers and processors; development and implementation of the export potential development strategy through marketing research and participation in international exhibitions; supporting best feedlot grain processing practices, including grain selection, growing, finishing and storage; dissemination of standards of quality control and safety of grain processing products. A number of eligibility criteria in the program are given. The article defines strict criteria for the selection of applicants, including registration, experience in the sector and willingness to co-finance at least 30% of the project cost. It is emphasized that the amount of grant funding can reach from UAH 10,000,000 to UAH 100,000,000. Methods. While researching this topic, we referred to regulatory and legal acts, competitive documentation of funds and grant programs, as well as to the publications of scientists. Methods that were applied during the research: description, analysis, generalization, induction, deduction, explanation, classification, as well as systemic and functional, etc. Results. The main advantages of the program are outlined, namely, the expected results of the grant activity: an increase in the volume of procurement and processing of raw materials; development of partnership relations, increase in productivity; development of a marketing strategy; expansion of export channels; innovations in processing; expansion of sales markets; increasing sales on international markets. Conclusion. It was concluded that the program provided significant opportunities for the restoration and development of the export potential of processing enterprises of grain, oil and leguminous crops in Ukraine, the expansion of sales channels and markets for finished processing products, and the increase of sales volumes on foreign markets.