Agriculture Reference
In-Depth Information
22.1 INTRODUCTION
The influence of internal and external factors on the competitiveness of domestic ag-
ricultural enterprises requires the manufacturers to intensely form competitive advan-
tages of products and ensure its competitive position in the market. However, in view
of an urgent problem of providing our country with price-affordable energy carriers, it
becomes appropriate to speed up the alternative fuel production.
Sugar and starch crops are used worldwide for the bioethanol production, includ-
ing the output product of sugar beet processing. Sugar beet industry has always played
an important role in Ukraine's economy and social development of society. Alongside
with sugar production, and as the country needs energy carriers very much, it is quite
relevant to use sugar beets and the output product of sugar beet processing for the
production of bioethanol as an alternative fuel.
A considerable contribution to the development of the competitiveness of sug-
ar beet companies, including the explanation of the ways of its enhancement, was
made by Varchenko [1], Zayets [2], Kaletnik [3], Kodenska [4], Royik [5], Sabluk [6],
Spychak [7], Bondar, Fursa, Yarchuk, and others. The essence of innovative technolo-
gies of the alcohol industry is studied by Shyian et al. [8] and others.
The goal of our research is to develop practical recommendations, which help to
ensure the competitive manufacturing of bioethanol using the output product of sugar
beet processing.
The developed world and European Union countries make great efforts to replace
traditional kinds of fuel with biofuels. Thus, the EU directive Renewable Energy Di-
rective (RED) 2009/28/EU establishes the use of 10 percent of renewable energy in
transport and 20 percent of renewable energy in the structure of gross energy con-
sumption by 2020 [9] as mandatory parameters.
The Law of Ukraine “On Alternative Fuels” [10] had envisaged that from 2013, it
was recommended to add at least (not less than) 5 percent of bioethanol into gasoline;
this rule has become mandatory in 2014-2015. From 2016, a required content of bio-
ethanol in motor gasoline, which is produced and/or sold on the territory of Ukraine,
will not be less than 7 percent.
Ukraine is obliged to consider the European standards, concerning the use of bio-
fuels in the context of its entry into the European Energy Community. Therefore, the
country has the obligation to bring the biological component in motor fuel up to 10
percent by the year of 2020.
22.2 MATERIALS AND METHODS
The data received from the State Statistics Department of Ukraine and the author's
own calculations were used in the process of writing an article. Prices and production
costs were translated at the official exchange rate of hryvnia to the US dollar, which
is established by the National Bank of Ukraine for an appropriate period. The prices
were given excluding value-added tax (VAT—20%), budget subsidies, and surcharges.
The coefficients of ratio between the cost of production of sugar beet processing and
prices of sweet roots were calculated based on the fact that the price of sugar beets is
1.0. The methods of system analysis and logic generalization were used to study the
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