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Ukrainian agriculture is currently in a growth phase, but it is yet not clear whether this growth is sustainable. The contrast between the potential of agricultural enterprises and their present desolate condition remains very striking. At the same time, the role of individual subsidiary holdings in agricultural production has increased substantially. The general economic crisis in agriculture encouraged growth in the number of individual subsidiary holdings (ISH) and made them the most important agricultural producers in Ukraine. The goals of this dissertation are (1) to analyse the development of organisational forms in Ukrainian agriculture, taking into account historical factors, (2) to determine differences between successful and unsuccessful enterprises, and (3) to determine the relationships (linkages) between ISHs and large agricultural enterprises. To fulfill the goals of the dissertation data from 78 large agricultural enterprises for 1995-1999 was examined. Moreover, in 2000 and 2002, 90 ISHs from 17 large agricultural enterprises were surveyed. The results of all interviews were summarized, including those that significantly deviated from the average, in order to present both norms and extremes. The study found a considerable divergence among restructured farm enterprises, both in terms of internal reorganisation and efficiency and in terms of managerial attitudes of new farm managers. Also various historical, economic and other reasons had an impact on the structure of reformed enterprises; these factors differ significantly by region in the Ukraine. These differences in agricultural development have their origins in property rights development as well as in differences of geopolitical position, and, therefore, in the influence of different cultures. The study emphasizes that in Ukraine there exists a clear tendency to establish agricultural enterprises with many owners and employees. The future development of large agricultural enterprises is entirely depended on setting up of adequate general economic conditions, consequential internal restructuring of agricultural enterprises and essential changes in the enterprise’s management. The efficiency of ISHs is very strongly affected by how and where they receive their production inputs. It may be expected that since there are no income alternatives and employment possibilities in the rural areas, the ISHs will continue to specialize in labor-intensive production such as livestock and vegetable production.


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