Abstract
<jats:p>The relevance of the research topic is due to the critical need to transform the agro-industrial complex of Ukraine from a raw material model of development to an industrial and innovative one, which involves the creation of a powerful network of processing enterprises. The study was conducted within the framework of the implementation of the economic contract theme of Vinnytsia National Agrarian University “Strategic directions of innovative, marketing and organizational and economic development of agrarian business”. In the context of global economic challenges, military risks and European integration aspirations of the state, the issue of finding effective mechanisms for stimulating added value within the country acquires strategic importance for ensuring national food and economic security. Despite significant resource potential, the domestic processing sector faces a number of systemic problems, such as technological obsolescence of funds, limited access to long-term investment capital and non-compliance with international environmental standards. The article highlights debatable issues regarding the adaptation of successful foreign practices of state regulation and financial support of agrarian processing to the specific conditions of the functioning of Ukrainian business. Conceptual approaches to the implementation of direct and indirect incentive instruments are discussed, in particular through grant programs, tax preferences and the creation of specialized infrastructure facilities. Special attention is paid to the issue of regional differentiation of the development of industrial capacities and finding a balance between supporting small businesses and large agro-industrial clusters. Theoretical aspects of integrating the principles of the circular economy, energy autonomy and digital traceability as key factors for increasing the competitiveness of finished products in foreign markets are considered. The importance of forming an institutional environment for insurance of investments and harmonization of the regulatory field in the context of the implementation of the European Green Deal is outlined.</jats:p>