Revista
de la
Universidad
del Zulia
Fundada en 1947
por el Dr. Jesús Enrique Lossada
DEPÓSITO LEGAL ZU2020000153
ISSN 0041-8811
E-ISSN 2665-0428
Ciencias del
Agro,
Ingeniería
y Tecnología
Año 15 N° 42
Enero - Abril 2024
Tercera Época
Maracaibo-Venezuela
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The Impact of Digitalisation on Employment in Agriculture in Ukraine
and Slovakia
Anastasiia Fesun*
Artan Qineti**
ABSTRACT
The digital transformation is strategically important for the agricultural sector
development, food security and employment in the agricultural sector and related
industries. The study aimed to assess the impact of digitalisation on employment in
agriculture in Ukraine and Slovakia. The study found that Ukraine and Slovakia have
successfully implemented digital technologies in agriculture, which has led to positive
results for agricultural production and sector competitiveness. Both countries use digital
platforms to collect, process, and analyse data, contributing to efficient resource
management and making agriculture more accurate and productive. However, Ukraine has
a low correlation between the number of people employed in agriculture and investments
in digital transformation, possibly due to the specifics of agriculture and infrastructure
constraints. In Slovakia, however, the level of dependence is moderate, indicating more
efficient use of digital tools in agriculture. For the further development of digital
agriculture in both countries, it is crucial to consider the specifics of infrastructure,
financing, and farmers readiness to implement digital solutions. Attention should also be
paid to simplifying bureaucratic procedures and supporting research and innovation,
which will help to increase the benefits of the digital transformation of agriculture and
further improve the productivity and competitiveness of the sector.
KEYWORDS: Agrarian structure, digitization, work organization, investment,
employment.
* Postgraduate Student, Faculty of Economics and Management, Institute of Economic Policy and
Finance, Slovak University of Agriculture in Nitra, Nitra, Slovak Republic. ORCID ID:
https://orcid.org/0009-0005-4145-5460. E-mail: anasta.fesun@gmail.com
** PhD in Economics and Management, Associate Professor, Faculty of Economics and
Management, Institute of Economic Policy and Finance, Slovak University of Agriculture in Nitra,
Nitra, Slovak Republic. ORCID ID: https://orcid.org/0000-0003-4766-9601. E-mail:
artqineti@gmail.com
Recibido: 20/09/2023 Aceptado: 16/11/2023
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El impacto de la digitalización en el empleo agrícola en Ucrania y
Eslovaquia
RESUMEN
La transformación digital es estratégicamente importante para el desarrollo del sector
agrícola, la seguridad alimentaria y el empleo en el sector agrícola y las industrias
relacionadas. El estudio tiene como objetivo evaluar el impacto de la digitalización en el
empleo en la agricultura en Ucrania y Eslovaquia. El estudio encontró que Ucrania y
Eslovaquia han implementado con éxito tecnologías digitales en la agricultura, lo que ha
dado resultados positivos para la producción agrícola y la competitividad del sector. Ambos
países utilizan plataformas digitales para recopilar, procesar y analizar datos,
contribuyendo a una gestión eficiente de los recursos y haciendo que la agricultura sea más
precisa y productiva. Sin embargo, Ucrania tiene una baja correlación entre el número de
personas empleadas en la agricultura y las inversiones en transformación digital,
posiblemente debido a las limitaciones específicas de la agricultura y la infraestructura. En
Eslovaquia, sin embargo, el nivel de dependencia es moderado, lo que indica un uso más
eficiente de las herramientas digitales en la agricultura. Para un mayor desarrollo de la
agricultura digital en ambos países, es crucial considerar los aspectos específicos de la
infraestructura, el financiamiento y la preparación de los agricultores para implementar
soluciones digitales. También debe prestarse atención a simplificar los procedimientos
burocráticos y apoyar la investigación y la innovación, lo que ayudará a aumentar los
beneficios de la transformación digital de la agricultura y mejorar aún más la productividad
y la competitividad del sector.
PALABRAS CLAVE: Estructura agraria, digitalización, organización del trabajo, inversión,
empleo.
Introduction
The digitalisation of agriculture is critical in changing the employment structure
and increasing productivity in rural areas of the EU, Ukraine, Slovakia, and other countries.
Here are some of the common factors that are driving these changes:
1. Introducing modern technologies and digital solutions in agriculture
increases farmers’ productivity. New technologies, such as drones, automated tractors, and
monitoring systems, help to optimise production processes and reduce the need for manual
labour.
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2. The digitalisation of agriculture will increase the skills requirements for
farmers and agricultural workers. This may lead to an increased demand for education and
training in digital technologies.
3. Consumer habits are changing, which may lead to a decline in employment in
traditional agricultural activities, such as manual recording and improvement, in favour of
more automated methods.
4. Thanks to technology and digitalisation, farmers can improve the quality of
their products, open up new markets and increase export opportunities.
5. Modern agricultural technologies can reduce the negative impact of
agriculture on the environment, leading to more sustainable employment and the
development of environmentally friendly industries.
Overall, the digitalisation of agriculture helps to increase productivity and create
new opportunities in rural areas of the EU and Ukraine. However, this process also
requires employees’ training investments in infrastructure to ensure the successful
integration of digital technologies in agriculture.
The introduction of modern digital technologies in agriculture contributes to the
automation and mechanisation of production processes, optimisation of resource use,
integration of e-commerce and increased efficiency of production management. Modern
digital technologies are changing employment structure, increasing the demand for IT
specialists and creating new opportunities in agro-technology and start-up development.
However, to achieve the full potential of agricultural digitalisation, infrastructure,
education, and training of highly skilled professionals are needed (Angin et al., 2020; Bahn
et al., 2021).
In the EU, digitalisation has become essential for increasing agricultural
productivity and improving the quality of life of rural populations. With the help of
modern technologies such as agrarian sensors, automation systems, artificial intelligence
and data analytics, farms can produce more efficiently and manage resources more
effectively (Ozdogan et al., 2017).
Ukraine and Slovakia, as two different countries, have their peculiarities in
developing digital technologies in agriculture. Agrarian characteristics, such as the size and
structure of agriculture, financial capacities, market requirements and legislative support,
determine these differences. With its vast agricultural production, Ukraine faces great
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challenges in optimisation and modernisation, while Slovakia, with its more limited
agriculture, can focus on high-quality products and efficiency. Given these differences,
both countries are developing digital technologies in agriculture according to their needs
and strategies.
Ukraine has significant potential in agricultural production but faces challenges in
implementing digital innovations due to financial and infrastructural constraints. While
the EU member Slovakia has greater access to financial resources and developed
technological infrastructure, which facilitates faster adoption of digital solutions in
agriculture, Ukraine, in turn, has significant potential for agricultural development.
However, Ukraine lacks infrastructure and access to many resources, which limits the
speed and scale of digital innovation. Hence, both countries have advantages and
challenges in developing digital technologies in agriculture, and they can mutually benefit
from each other’s experience and support to achieve common goals (Dobrovodska et al.,
2019; Tretyak et al., 2022).
The study of the impact of digitalisation on agriculture in Ukraine and Slovakia in
the context of general trends in the EU has several relevant aspects. First, it is a regional
approach to analysis, which allows us to compare the impact of digital transformation on
agriculture in countries with different levels of economic development. This makes the
study relevant for regional policymakers and investors looking for appropriate approaches
to digital rural development.
There is a growing interest in digital solutions in agriculture, where digital
transformation has become a vital tool for food security and crisis response, particularly in
the context of the full-scale war in Ukraine, where food security and humanitarian
concerns have become significant challenges for agriculture. The study offers practical
information and ideas that can contribute to developing digital agriculture and preserving
employment in rural areas.
The study aims to assess the impact of digitalisation on agricultural employment in
Ukraine and Slovakia. The study aims to identify familiar and different trends in the impact
of digitalisation on the agricultural sector in these regions.
Specific research objectives include:
1. Analysis of the introduction of digital technologies in agriculture in Ukraine,
the EU and Slovakia.
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2. Study of the impact of digitalisation on the changing structure of employment
in the rural sector.
3. Assessment of the impact of digitalisation on agricultural productivity and
competitiveness.
4. Identification of factors that facilitate or impede the digital transformation of
agriculture in the studied regions.
5. Consideration of possible prospects and recommendations for further
development of digital agriculture.
1. Literature Review
Many scholars think digital tools, such as agricultural sensors, automation systems
and data analytics, can significantly increase agricultural productivity. This means
producing more crops per unit of inputs and resources (according to Ostapchuk et al.
(2021), Arıcıoglu et al. (2020)).
Agriculture that uses digital solutions becomes more competitive in the global
market. More accurate predictions of yields and improved product quality can make
agricultural products more attractive to consumers (according to a study by Fountas et al.
(2020)).
In addition, introducing digital technologies such as autonomous tractors, drones,
and agricultural software can help increase productivity and reduce the need for manual
work. This reduces the necessary workforce and opens up opportunities for automation
and robotisation of routine tasks in agriculture. Such innovations can significantly increase
production efficiency and reduce costs, which are critical factors for the sustainability and
development of agriculture in the modern world. In addition, developing digital
infrastructure in rural areas can also create new jobs in information technology,
programming, digital equipment maintenance, and other related fields (Dueñas et al., 2021).
Berawi et al. (2020) claim that digital technologies can improve the competitiveness
of small and medium-sized enterprises in rural areas, leading to increased production and
business expansion.
However, according to Kova et al. (2019), introducing digital technologies may
require retraining workers. New equipment and software related to digital technologies
may require specific skills and knowledge (Skrypchuk, 2023).
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Wilson et al. (2018) and Xiong at al. (2020) believe that introducing robotic systems
and automation can reduce the physical burden on agricultural workers, which can be
particularly beneficial for older workers or disabled ones.
Wadoux and McBratney (2019) and Verboven et al. (2019) think that digital
transformation can create new employment sectors in agriculture, such as developing,
maintaining, and supporting digital agricultural technologies. Nasirahmadi and Hensel
(2022) also note that various jobs may appear in agriculture, from drone operators and data
analysts to agro-technology engineers and farmers using these technologies.
Digital technologies can also change the nature of work in agriculture. For example,
farmers may focus more on data management and analysis and less on physical farming
operations. This may open up new opportunities for specialisation and diversification in
the industry. In addition, with the development of digital technologies, new rural services
may emerge, such as crop advisory, data analytics, farm planning, etc. This could create
new jobs for agronomists and consultants (Moghadam et al., 2020).
Digitalisation can create new opportunities for agricultural start-ups and innovative
enterprises, which may require additional expertise and labour. Digital technologies can
also facilitate the development of e-commerce in agriculture, which can create new jobs in
logistics, e-commerce and marketing (Pazur and Bolliger, 2017).
According to Pylianidis et al. (2021), it is essential that young people get interested
in working in agriculture if modern technologies and digital tools are used.
Hence, the literature review shows that the impact of digitalisation on employment
in agriculture is composed of various factors and can have both positive and negative
consequences for the labour force and employment in this sector.
The interaction between digital transformation and agriculture is complex, so
further research will help better understand the impact of digital transformation on
agriculture and develop strategies that will promote sustainable and innovative
development of this critical sector.
2. Materials and Methods
The main stages of studying the impact of digitalisation on agriculture in Ukraine
and Slovakia:
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Stage 1: Identification of critical indicators that should be considered when analysing the
impact of digitalisation on agriculture. These indicators include:
- number of agricultural enterprises;
- total area of agricultural land;
- total number of people working in agriculture;
- number of rural population with education in information technology;
- number of farms using modern agricultural technologies (e.g. GPS navigation);
- amount of investment in the digitalisation of agriculture;
- gross value added;
- average monthly nominal wage of full-time employees.
Stage 2. A comparative analysis of the state of agricultural development and the level of
digitalisation in Ukraine and Slovakia was carried out.
Stage 3. Forecasting for the further development of agriculture in Ukraine and Slovakia
in the context of digitalisation. Considering the analysis results, we tried to predict
possible trends and identify critical areas of development which can be helpful for
government agencies, businesses and other stakeholders.
2.1. Research Methods
The following methods were used to obtain the most objective and reliable
information:
The descriptive analysis method was used to provide a general overview of the
state of agricultural development and digitalisation and to conduct a descriptive analysis of
the state of agricultural development and the level of digitalisation in Ukraine and Slovakia.
Analysis of statistical data and literature review related to the digital transformation
of agriculture in the EU region. This allowed us to understand current trends, challenges,
and opportunities for digital transformation in this sector. Official statistical sources on
agriculture, investment, employment, economic indicators and other statistical data in
Ukraine and Slovakia were the Ministry of Digital Transformation of Ukraine (2023), the
State Statistics Service of Ukraine (2023), the Statistical Office of the Slovak Republic
(2023), the Ministry of Agriculture and Rural Development of the Slovak Republic (2023),
the Ministry of Investment, Regional Development and Informatics of the Slovak Republic
(2023), reports of international organisations such as The World Bank (2023) and the
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United Nations Economic Commission for Europe (2023) containing information on
agriculture and digital transformation.
Correlation analysis. The data obtained were processed and analysed using
statistical and analytical methods, including statistical processing, calculation of
performance indicators, and correlation analysis to identify relationships between various
factors. Performance indicators were calculated based on the amount of investment in
agricultural digitalisation, gross value added, average monthly nominal wages of full-time
employees, and the total population working in agriculture, which may be necessary for
assessing the impact of digitalisation on agricultural productivity and competitiveness.
Calculating efficiency based on the amount of investment in agrarian digitalisation can be
essential to determine how much investment in digital technologies affects the
development and performance of the agricultural sector; gross value added indicates the
value created in agriculture, and average monthly wages can mean the level of
remuneration and possible changes in the quality of the labour force.
The impact of digitalisation on employment in agriculture in Ukraine and Slovakia
is calculated using the formula 1:
= G / T (1)
is a digital investment indicator,
G the amount of investment in the digitalisation of agriculture
(Grossfixedcapitalformationforformation)
T total population working in agriculture (Totalnumber ofemployees)
This indicator can help analyse the costs of digital transformation in different areas
of activity and compare the effectiveness of these investments among employees.
Case study. Special attention was paid to analysing specific cases of successful
integration of digital technologies in agriculture in Ukraine and Slovakia. This approach
allowed us to identify particular examples and study their impact on practice.
3. Results
The digitalisation measures used in Europe have great potential to promote
innovation in the agricultural sector and support farmers in implementing digital
technologies and sustainable agriculture. Developing digital skills among farmers and
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access to modern digital infrastructure is essential for the successful digitalisation of
agriculture.
Slovakia actively supports innovation in the dairy and potato sector through energy
efficiency, advisory services, waste management and energy audits, which help farmers use
modern production methods and reduce their environmental impact. Close cooperation
between farmers, researchers and technologists improves agriculture, allowing the
exchange of knowledge and innovative solutions, improving agricultural practices and
increasing production efficiency.
Such support promotes sustainable agriculture by ensuring a balanced approach to
production and resource management, fostering business development job creation and
improving the quality of life of local people. It is important to note that such initiatives
contribute to the digital transformation of agriculture and its sustainable development and
increase farmers’ competitiveness in the global market.
Digitalisation in Ukrainian agriculture is an essential area of agricultural
development. This includes the use of modern technologies, software, and information
systems to improve the productivity, quality and competitiveness of agriculture, the
introduction of electronic accounting and document management systems that allow
farmers to reduce bureaucracy and improve reporting, and the use of specialised software
products for production planning, fertiliser and crop protection calculations, soil quality
control and other aspects of agriculture.
In general, it can be noted that both Ukraine and Slovakia are experiencing some
growth in agriculture and digitalisation. Still, both countries have specific features and
development paces (Tables1, 2).
The data shows that Ukraine has more agricultural enterprises and a larger
population engaged in agriculture. In addition, the number of farms using modern
technology has also increased in Ukraine. However, investment in digitalisation declined
between 2016 and 2022, which was also affected by the pandemic (2019-2020) and full-
scale war (2022).
Slovakia has fewer agricultural enterprises, but the country has made more progress
in increasing the number of farms using modern technology and attracting investment in
digitalisation.
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Table 1.
Dynamics of indicators of agriculture and digital transformation in Ukraine
Indicator
Year
2012
2014
2016
2018
2020
2022
Number of agricultural enterprises,
thousand
46
49
47
45
43
49
Total agricultural land area, mln ha
41.5
41,5
41.5
41.5
41.3
41.3
Total population working in
agriculture: thousand people
2795
2870
2937
3010
2721
2692
Number of rural population with
education in information
technology, %.
14
16
18
20
22
24
Number of farms using modern
agricultural technologies (e.g. GPS
navigation, automated systems and
tools)
3400
3600
3800
4000
4200
4400
Investment in agricultural
digitalisation, USD million
845
1206
1626
1463
1267
1142
Gross value added, USD million
6311
9499
9383
10344
15277
14812
Average monthly nominal salary of
full-time employees, USD
87
199
233
256
323
385
Source: The World Bank (2023).
This may indicate that Ukraine has the potential to develop the digital
transformation in agriculture further, especially if investments in the sector increase.
To calculate the impact of digitalisation on employment in agriculture in Ukraine
and Slovakia, the value of the digital investment indicator (
k
) is calculated.
For Ukraine:
k
=
1142
2692
=
26921142≈0.424
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Table 2
. Dynamics of indicators of agriculture and digital transformation in Slovakia
Indicator
Year
2010
2012
2014
2016
2018
2020
2022
Number of agricultural enterprises,
thousand
16,4
16,8
17,5
18,9
21,4
23
25
Total agricultural land area, mln ha
3.2
3.1
3.3
3.2
3.1
3.0
2.9
Total population working in
agriculture: thousand people
50,5
48,9
51,8
52
52.5
52,8
53
Number of rural population with
education in information
technology, %.
18,4
18,9
19
19,4
20,1
24
28.6
Number of farms using modern
agricultural technologies (e.g. GPS
navigation, automated systems and
tools)
3010
3240
3980
4150
5400
6700
9100
Investment in agricultural
digitalisation, USD million
98
121
134
154
2148
2584
4122
Gross value added, USD million
361
456
512
632
658
756
884
Average monthly nominal salary of
full-time employees, USD
756
956
1203
1306
1380
1420
1500
Source: The World Bank (2023).
For Slovakia:
k
=
3353
52.9
=
52.93353≈63.32
The obtained values of the average digital investment indicator show a significant
difference in the level of digital investment between Ukraine and Slovakia.
As a member of the EU, Slovakia can benefit from support and funding from
European funds for developing agriculture and digital infrastructure. This support can
stimulate investment in digital transformation. In addition, the high average value of digital
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investment in Slovakia indicates that the country is investing significant resources in the
digital transformation of agriculture. This can contribute to developing modern
technologies in the agricultural sector, increasing productivity and reducing dependence
on manual labour. In addition, high investment activity in the digital transformation of
agriculture can stimulate innovation, increase productivity, and reduce dependence on
manual labour, contributing to the sector’s sustainable development.
On the other hand, Ukraine has a significantly lower average value for digital
investment than EU countries, which may indicate a lower adoption of modern
technologies in agriculture and may impact the productivity and competitiveness of the
agricultural sector.
The statistical software Excel was used to calculate the correlation coefficient, and a
linear trend line was plotted. The relationship between the number of agriculture
employees and the investment in agricultural digitalisation in Ukraine has increased over
the years. Still, the correlation coefficient (R) is 0.0195, which indicates a fragile linear
relationship between these variables (Figure1).
The relationship between the average monthly nominal wage of full-time employees
and the volume of investment in agricultural digitalisation is characterised by a correlation
coefficient of R of 0.973, which indicates a solid positive linear relationship between these
variables. An R-value close to 1 means a robust linear relationship between the average
monthly nominal wage of agriculture full-time employees and the investment in
agricultural digitalisation.
Therefore, over time, there is an increasing relationship between the average
monthly wage of agricultural workers and the amount of investment in agrarian
digitalisation. But the relationship between the number of employees and investment is
smaller and less stable.
It is worth noting that digitalisation helps increase productivity and efficiency in
agriculture, which in turn leads to an increase in the gross value added to this sector. The
calculation was performed using the statistical software Excel. The correlation coefficient
(R) value is close to 1, indicating a strong positive linear relationship between the
investment amount in agricultural digitalisation and gross value added in agriculture. In
other words, investment in agrarian digitalisation is usually accompanied by increased
gross value added to the sector (Figure2).
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Figure1
. Correlation between the amount of investment in agricultural digitalisation, the
total number of people working in agriculture and the average monthly nominal wage of
full-time agricultural workers in Ukraine
Source: developed by the author.
In Slovakia, the relationship between the number of people working in agriculture
and the investment in agricultural digitalisation has increased over time from 2014 to 2022.
R is 0.7089, indicating a moderate positive linear relationship between the number of
people working in agriculture and the investment in agricultural digitalisation.
The correlation between full-time employees’ average monthly nominal wage and
investment in agricultural digitalisation is very high. The positive relationship between
these two indicators increases over time and becomes even stronger in 2022. The R-value
close to 1 confirms a significant linear relationship between these two variables.
This may indicate that investments in the digitalisation of agriculture impact
increasing workers wages in the sector and may contribute to improving their lives and
working conditions (Figure3).
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Figure2.
Correlation between investment in agricultural digitalisation and gross value
added in Ukraine
Source: developed by the author.
In addition, this strong correlation may reflect the impact of investment on wages in
agriculture or the chosen development strategy for the sector in which investment and
wages are highly interdependent.
The correlation coefficient (R) is approximately 0.9841, indicating a relatively strong
positive linear relationship between the investment amount in agricultural digitalisation
and gross value added in agriculture. This may suggest that digitalisation contributes to
increased productivity and profitability of agriculture, which in turn leads to an increase in
gross value added (Figure4).
Both countries have a strong positive correlation between the average monthly
nominal wage of full-time employees and the investment in agricultural digitalisation.
However, in the case of Ukraine, the relationship between the number of people employed
in agriculture and investments in digitalisation is fragile, while in Slovakia, it is moderate.
In other words, in Ukraine, investments in agricultural digitalisation may not have as
strong an impact on the number of employees in agriculture as in Slovakia.
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Figure3.
Correlation between the volume of investments in agricultural digitalisation, the
total number of people working in agriculture and the average monthly nominal wage of
full-time agricultural workers in Slovakia
Source: developed by the author.
A case study for Ukraine:
A specific example for Ukraine is using drones to monitor fields and crops. Ukraine
is already using drones equipped with unique cameras and sensors that collect data on the
condition of crops, soil moisture, temperature, and other factors. This data is processed
using data analytics and artificial intelligence, which allows farmers to receive accurate
information about the condition of their fields.
The results of using drones include:
1. Accurate field monitoring: farmers can detect problems such as pests, diseases or
insufficient watering in time and take the necessary measures.
2. Optimizing the use of resources: data collected by drones can help reduce the cost
of water, fertiliser and pesticides.
3. Increased yields: with precise crop monitoring and management, you can
increase yields and improve product quality.
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This example demonstrates how using specific digital technologies, such as drones,
can improve agricultural efficiency and become a successful innovation for farmers in
Ukraine (Ostapchuk et al., 2021).
Figure4.
Correlation between investment in agricultural digitalisation and gross value
added in Ukraine
Source: developed by the author.
A case study for Slovakia:
Slovakia has introduced digital technologies in agriculture through the “Smart
Agriculture” initiative, aimed at introducing various technologies to improve the efficiency
of agricultural production: modern plant and animal monitoring systems using sensors and
drones, the use of automated systems for tillage, irrigation and harvesting, and the use of
data analytics and artificial intelligence to provide farmers with recommendations on the
optimal use of resources and farm management.
Results:
- Thanks to the introduction of digital technologies, agriculture in Slovakia has
increased yields and reduced production costs.
- Farmers have access to real-time information about the conditions on their farms
and can make more informed decisions.
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- The development of digital markets contributed to the expansion of foreign trade
and increased farmers’ incomes.
- Economic models have shown that investments in digital technologies pay off by
increasing productivity and product quality (Dobrovodska et al., 2019).
Both cases demonstrate the successful integration of digital technologies into
agriculture in Ukraine and Slovakia. The analysis of such cases is an essential component of
the study of the impact of digitalisation on agriculture and provides specific examples of
successful innovative solutions.
Ukraine has a large agricultural sector, and its young IT industry could become an
essential driver of digital transformation. However, important factors that hinder this
process include limited internet access in rural areas, lack of funding, farmers’ age and their
lack of readiness to use digital technologies. To develop digital agriculture further in
Ukraine, it is essential to expand infrastructure, create financial mechanisms, and provide
training and support to farmers.
Slovakia has a high level of technical education and access to financial resources but
also faces bureaucratic constraints that hinder the adoption of digital technologies in
agriculture. Some of these constraints include complex licensing and registration
procedures for using agricultural technologies, limited access to finance for farm
modernisation, land and property issues, certification and standards requirements, and tax
and financial obligations. These bureaucratic difficulties may hinder the digital
transformation of agriculture in Slovakia despite the availability of technical expertise and
financial resources. To further develop digital agriculture in Slovakia, simplifying
bureaucracy, developing training programmes, and investing in research and innovation are
essential.
Both countries have the potential to improve their approaches to the digital
transformation of agriculture and use digital technologies to increase productivity and
efficiency in the agricultural sector.
The findings may indicate differences in the level of investment and approaches to
digitalisation in both countries and may serve as a basis for further analysis and
strategising for the development of digital agriculture. It is essential to remember that this
is a general overview, and other aspects such as policy, regulation and access to resources
may also influence agricultural development and digitalisation in both countries.
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4. Discussion
Digitalisation is one of the most important transformational forces in the modern
world, affecting various sectors of the economy and society. Countries with high
investment in digital infrastructure and technology can enjoy the benefits of digitalisation
to a greater extent, including increased efficiency and job creation. One sector experiencing
digitalisation's impact is agriculture (Ostapchuk et al., 2021; Arıcıoglu et al., 2020).
However, the availability of workers capable of using digital technologies in agriculture
can affect the success of introducing these technologies and their impact on employment
(Kova et al., 2019).
The specifics of agriculture and market conditions may vary between countries. The
existence of developed agricultural markets and demand for digital services may alter the
employment impact of digitalisation. Changes in countries’ political, economic and trade
policies can also affect the level of employment in agriculture and the effectiveness of
digital transformation (Lopez-Morales et al., 2020).
In addition, the study is similar to the findings of various scholars that digital
technologies can increase productivity in agriculture, which may boost demand for
specialised labour (Nasirahmadi and Hensel, 2022).
Researchers note that the digital transformation of agriculture can significantly
impact employment and job creation. In particular:
1.
Creation of new jobs
in areas such as software development for agricultural
technologies, technical support for farmers using digital solutions, data analysis for
production improvement, and many other related areas.
2.
Improving working conditions
for rural workers through automation and using
robots. Routine and heavy physical work can be done with the help of autonomous
technologies, allowing agricultural workers to avoid overwork and reduce the risk of injury.
3. Improving safe working conditions. For example, monitoring systems and sensors
can warn of potentially dangerous situations and control the operation of machinery and
equipment, reducing risks.
4. Improving production efficiency. Digital solutions allow farmers to optimise
production processes, increasing yields and production. This, in turn, may create demand
for additional labour to maintain and monitor these new technologies.
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5. Development of related industries. The digital transformation of agriculture
contributes to developing associated industries, such as agricultural technology production,
agro-technology consulting, engineering, and programming of farming needs.
Therefore, the digital transformation of agriculture provides new opportunities for
efficiency and sustainability of the sector and contributes to the creation of employment
and improved working conditions (Werkheiser, 2020).
Introducing digital technologies may require training and upskilling workers, but it
opens up new professional growth and development opportunities. In addition, digital
transformation contributes to the development of rural areas, reduces the gap between
cities and rural areas, and promotes job creation in rural areas.
Through training and skills development, rural residents can acquire new skills
needed to work with digital technologies, which opens up opportunities for professional
growth and improved quality of life. Digital transformation also has the potential to reduce
the economic and infrastructural gap between localities, as it allows rural regions to access
modern technologies and resources. This, in turn, can stimulate the development of farms
and businesses in rural areas. Rural job creation is also an essential component of digital
transformation. New technologies and innovations can contribute to developing
agriculture and rural industries, which require additional workers and create more jobs in
rural communities.
Digital transformation can improve productivity and quality of life in rural areas and
create new professional growth and development opportunities in rural communities
(Dueñas et al., 2021).
The level of investment in agricultural digitalisation correlates with the gross value
added in this sector, which confirms that investments in digital technologies help increase
agriculture's productivity and profitability, leading to an increase in gross value added
(Jorge-Vázquez et al., 2021; Némethová and Rybanský, 2021).
The development of digital agriculture impacts the wages of workers in the sector.
Digital tools and process automation can increase agricultural enterprises’ efficiency,
leading to higher revenues and, consequently, higher wages for workers. These findings
highlight the importance of investing in the digital transformation of agriculture to
increase efficiency, profitability, and competitiveness (Dobrovodska et al., 2019).
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However, various authors, similar to the study presented here, note that the success
of digital transformation may depend on multiple factors, such as the availability of
infrastructure, financing, education and training of farmers, as well as the effectiveness of
managing this process at the state and regional levels (Bernal-Jurado et al., 2021).
In addition, this study differs from the findings of some studies on the impact of
various factors on employment. After all, a country's economic context and level of
development can significantly impact how digital transformation affects employment. In
developed countries, there may be more opportunities to use digital technologies to create
new jobs. In contrast, preserving and stabilising existing jobs in less developed countries
may be more critical. Therefore, it is essential to conduct analyses in a country-specific
context and consider all aspects that may affect the relationship between digital
transformation and employment in agriculture (Reis et al., 2021).
Digitalisation in agriculture in Ukraine and Slovakia has excellent potential to
improve the rural population's production efficiency and quality of life. However, adopting
digital technologies requires investment, training and a regulatory approach to ensure
equal access and beneficial use of these opportunities (Berawi et al., 2020; Jan Drahokoupil
and Fabo, 2019).
In summary, Ukraine and Slovakia, like many other countries, face challenges and
opportunities in the digital transformation of agriculture. The introduction of modern
technologies in agriculture can improve production efficiency, increase product quality,
and create new jobs. However, this process requires investment, training, and
infrastructure development.
Ukraine has the potential to develop digital technologies in agriculture but faces
challenges such as limited internet access and financial constraints. The pandemic and full-
scale war have also affected investment.
Slovakia has a high technical education and financial infrastructure level and is
actively integrating digital solutions into agriculture. However, bureaucratic constraints
can be an obstacle to the rapid adoption of technology.
The relationship between investment in digitalisation and employment in
agriculture in Ukraine appears weak, indicating that investment may not automatically
lead to an increase in the labour force. However, an increase in average monthly wages is
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significantly correlated with investment, indicating a positive impact of digital
transformation on working conditions (Liu et al., 2021; Rega et al., 2020).
In the context of the European Union, Ukraine and Slovakia can draw on European
countries' experience and best practices to improve the situation in their respective
agriculture sectors. Focusing on agricultural support policies, agro-technology, efficient
use of resources, and attracting young people to agriculture can make agriculture more
sustainable and competitive.
Overall, the digital transformation of agriculture has great potential to improve the
quality of life of rural residents and the development of rural areas in Ukraine and Slovakia,
and its development should be promoted and supported.
Hence, the study meets its objective, and its results highlight the importance of
digital transformation of agriculture as a strategic direction to increase the productivity,
efficiency, and competitiveness of the sector in Ukraine and Slovakia. The study shows that
investments in digital technologies contribute to increased gross value added, higher wages
and overall agricultural development in both countries. The findings directly affect
governments, businesses, and educational institutions in agriculture and digital
technologies.
Conclusions
Improving agriculture through the use of digital technologies can contribute to the
development of employment in rural regions of Ukraine and Slovakia. The introduction of
modern agricultural technologies and digital solutions can create new opportunities for
jobs in the agricultural sector, including jobs in the maintenance and technical support of
digital equipment.
Involvement of youth in agriculture by giving them access to modern technologies
and training in this direction can be a step in ensuring sustainable employment in the
agricultural sector. In addition, the development of digital skills among the rural
population can contribute to their adaptation to new requirements in the labor market and
increase their competitiveness both as specialists in agriculture and in other fields.
Ukraine and Slovakia have demonstrated the successful integration of digital
technologies in agriculture, showing the positive effects of this process on production and
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competitiveness of the agricultural sector. Both countries use digital platforms to collect,
process and analyse data, contributing to efficient resource management and making
agriculture more accurate and productive.
For the further development of digital agriculture in both countries, it is essential to
consider the specifics of infrastructure, financing and farmers' readiness to implement
digital solutions. Attention should also be paid to simplifying bureaucratic procedures and
supporting research and innovation, which will help increase the benefits of the
digitalisation of agriculture and further improve the productivity and competitiveness of
the sector.
The study's findings are of practical importance as they can be used to develop
strategies and policies for the digital transformation of agriculture in Ukraine and Slovakia.
They also indicate the potential and prospects for further improving agricultural
productivity and efficiency through digital technologies. Thus, the results of this study can
serve as a basis for elaborating specific measures and strategies for developing digital
agriculture in both countries.
Prospects for further research lie in an in-depth study of the factors influencing the
digital transformation of agriculture in Ukraine and Slovakia. Possible research areas
include analysing the impact of policy and regulation on this process, examining the role of
rural communities and cooperative societies in digital transformation, and exploring the
relationship between digital transformation and the sustainability of agricultural
production.
Limitations of the study
Various economic, political, and social factors may influence the digital
transformation of agriculture, and these factors may be difficult to control or account for in
a study.
Recommendations
Efforts must be made in several areas to achieve a successful digital transformation
of agriculture in Ukraine and Slovakia. First, both countries should actively work to
expand internet access in rural areas. This could include investing in mobile and
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broadband networks to ensure reliable access to digital technologies for rural residents and
farmers.
Second, creating financial mechanisms to support investment in digital technologies
is essential to successful digital transformation. Ukraine and Slovakia should develop
subsidies, loans, and grant programmes to support farmers in implementing digital
solutions. This could engage more farmers in digital transformation and foster innovation
in agriculture.
Third, training and consultations are essential in preparing farmers and rural
populations to use digital tools. Training programmes and advisory services can help
increase knowledge and skills in using digital technologies, which will positively impact
the speed of adoption of these solutions.
The overall success of the digital transformation of agriculture also depends on
active cooperation between the countries and the exchange of experience. Both countries
can use best practices and experience from the European Union to improve their
agricultural sectors. At the same time, developing long-term strategies is critical to creating
sustainable and competitive agricultural sectors.
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