Digital transformation of the agricultural sector of Ukraine: investment dynamics, spread of Agritech and economic effects

Abstract

The aim of the study is to provide a scientific synthesis of the dynamics of digital transformation in Ukraine’s agricultural sector during 2018–2024, to assess changes in the level of digital technology adoption, and to identify the economic effects of digitalization at the level of agricultural enterprises. The methodological framework of the research is based on statistical time-series analysis, comparative and structural analysis, generalization, as well as an indicator-based approach using integral indices and key performance indicators (KPIs). The theoretical provisions are supplemented with the author’s own calculations of investment activity, the degree of automation of production processes, and the effectiveness of digital solutions implementation. The research results indicate the formation of a stable upward trend in investments in digital technologies and an increase in the digital transformation index of the agricultural sector, accompanied by the expansion of AgriTech practices, digital platforms, and production management systems. A positive impact of digitalization on reducing production costs, increasing yields, lowering losses, and optimizing logistics has been identified. At the same time, a decline in production volumes in the dairy sector has been recorded, driven by wartime, structural, and macroeconomic factors, which underscores the need to enhance the technological intensity of production. It is established that further digitalization of the agricultural sector is constrained by unequal access to digital infrastructure, limited financial capacity of small and medium-sized producers, gaps in digital competencies, and cybersecurity risks. The feasibility of using the obtained results to develop national and regional AgriTech support programs and to build a system for monitoring the effectiveness of digital transformation in the agricultural economy is substantiated.