Article

Received 29.11.2024

Revised 27.02.2025

Accepted 27.03.2025

Retrieved from Vol. 29, No. 1, 2025

Pages 45 -56

Potryvaieva, N., Palieiev, А., & Moskal, I. (2025). The use of outsourcing in the public service delivery system to enhance the efficiency of agricultural production. Ukrainian Black Sea Region Agrarian Science, 29(1), 45-56. https://doi.org/10.56407/bs.agrarian/1.2025.45

The use of outsourcing in the public service delivery system to enhance the efficiency of agricultural production

Natalia Potryvaieva Artem Palieiev Illia Moskal

Outsourcing in agriculture is a key tool for improving resource management efficiency, facilitating the implementation of innovative technologies, and reducing costs. In Ukraine, where the agricultural sector constitutes a significant share of the gross domestic product, evaluating the efficiency of such models is essential to ensuring the competitiveness of farms. This study focused on analysing the economic efficiency of outsourcing agrochemical soil services, satellite monitoring, and the adoption of precision farming, as well as assessing the impact of publicprivate partnerships. Statistical and comparative analyses were applied, including data from Ukrainian companies such as AgriLab and international practices. The analysis was based on data on costs, yields, and the efficiency of agricultural infrastructure over the period 2019-2024. The results indicate that soil maintenance costs decreased from 98 EUR/ha in 2019 to 84 EUR/ha in 2024, reflecting a 14% cost reduction. Administrative expenses fell by 25%, while overall agricultural infrastructure costs in Ukraine declined from UAH 5 billion to UAH 3.5 billion (a 30% reduction). The use of precision farming increased yields by 15-20%, depending on the crop, while fertiliser savings amounted to 20%. The implementation of outsourcing and innovative technologies ensures cost reduction and improved efficiency for farms. In particular, outsourcing significantly optimises production processes, as evidenced by an 18% increase in wheat and maize yields following the adoption of field zoning recommendations

agricultural sector; cost optimisation; precision farming; farms; soil analysis; yield improvement

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