Factors of Formation and Development of Value-Added Chains in the Sphere of Livestock and its Processing

In modern conditions of competition in agricultural markets, the effective formation and development of value-added chains in livestock and their processing is gaining particular importance. In times of martial law, changes in logistics routes, destruction of traditional economic ties, and the need for financial stability of rural areas, effective value-added chains in livestock can become a key tool for economic stabilization, job preservation, increased food security, and growth of export potential. In this vein, studying factors of formation and development of value-added chains in livestock and their processing is relevant. The publication's purpose is to study the features of the functioning and development of value-added chains and the factors that influence the formation of value-added chains in livestock processing. The article examines the features of the formation and development of value-added chains. Key factors that influence the functioning of value-added chains in the field of livestock farming and its processing are identified. The advantages of creating value-added chains in livestock farming and processing are substantiated, and it is proven that the development of value-added chains in the livestock industry is a key factor in the modernization of the agricultural sector, the formation of effective agri-food systems, and increasing the sustainability of Ukrainian producers in the global economic environment. The main factors that determine the possibilities of integrating livestock farms into value-added chains include: the availability of natural resources, the level of financial support and investment attractiveness of the industry, technological modernization, state agricultural policy, the activity and strategic planning of the private sector, international cooperation, and force majeure circumstances. Forming effective value-added chains in livestock farming and its processing requires considering complex interrelated factors. The synergy of economic, technological, organizational, and institutional conditions is the basis for creating a competitive model of livestock development in Ukraine.