FORMULATION OF STRATEGIC DIRECTIONS FOR THE DEVELOPMENT OF FOREIGN ECONOMIC ACTIVITY OF AGRICULTURAL ENTERPRISE IN TERMS OF THE EU INTEGRATION (BASED ON ASTARTA HOLDING PLC)

Abstract

The article is devoted to the formation of strategic directions for the development of foreign economic activity of Ukrainian agricultural enterprises in terms of the European integration, based on the inductive method. As a case study, the domestic vertically integrated agricultural holding Astarta was selected. The company specializes in growing grain and oilseed crops (including organic), sugar production, dairy farming, soybean processing, and bioenergy. It was found the high economic performance of Astarta’s is largely due to its strong integration into the European and international agri-food markets. Approximately half of the company’s foreign currency revenues are generated from the export of agricultural raw materials - grain and oilseeds. One of the key success factors of Astarta in foreign markets is its responsible and consistent compliance with international quality standards for final products. Some of the opportunities and threats for Ukrainian agricultural enterprises in terms of the EU intergration were summarized. Through a SWOT-analysis, the main strengths and weaknesses of Astarta in domestic and foreign markets were identified, along with the systematization of opportunities and threats facing the enterprise under conditions of European integration and martial law. The TOWS-analysis method made it possible to formulate and justify key strategic directions for the development of Astarta’s foreign economic activity. To leverage opportunities through its strengths, the company is advised to focus on scaling up production and entering new markets, particularly in EU member states, with organic food products. To counteract the threats arising from the European integration, several strategic directions were proposed based on the enterprise’s strengths: deepening soybean processing to the stage of soybean protein concentrate production for further export, developing compound feed production and gradually entering export markets using the enterprise’s own raw material base, launching export-oriented bioethanol production, fully aligned with the principles of the EU Green Deal. Moreover, it was established that Astarta’s weaknesses can be mitigated by using available opportunities, such as expanding the production and export of ISCC-certified soybean oil. Finally, reducing exports of raw agricultural materials (grain and oilseeds) and optimizing production chains to enhance flexibility during wartime disruptions was determined to be a justified strategic step to eliminate Astarta’s weaknesses amid external threats. As a result of the study, universal principles were proposed for developing strategic directions for the foreign economic activity of domestic agricultural enterprises in terms of the EU integration – resilience, sustainability, and a focus on deep processing of agricultural raw materials.