Current status and trends of food market

The current state of the food market, socioeconomic impact of its operations. Aspects of the formation and subsequent functioning of national food market and the source of its trade provision explored in the works of national and foreign economists.

Рубрика Экономика и экономическая теория
Вид статья
Язык английский
Дата добавления 28.12.2017
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Current status and trends of food market

V.P. Stadnyk, Ph. D. Economics,

Senior Lecturer the National University of Life

and Environmental Sciences of Ukraine

of the "Nizhyn Agrotechnical Institute"

Abstract

The article deals with the current state of the food market, socioeconomic impact of its operations. Among the tasks of economic transformation in Ukraine market, further integration into the world economic system occupy prominent task of providing the population with food due mainly internal sources and gradually reduce dependence on foreign food producers, creating food security as an important component of national security.

Manufacturers are oriented to the needs and creditworthiness of customers. The collapse of the mechanism of distribution of food resources and the absence of the market system contributed to numerous intermediaries in the food market. The practice of recent years clearly shows that the regulation of food market monetary and fiscal means at the macroeconomic level did not provide full-fledged operation of enterprises of the agricultural sector.

The feature of the organized agricultural market is that it is impossible to learn in a particular region. General principles and common approaches should be implemented into practice simultaneously in the domestic market and a clear regulatory and legal basis.

Solution of the examined issues shall have a systematic character, as mentioned in the research paper. A deeper attention to these issues will be given in the subsequent studies.

Keywords. food market, stock market, sale, barter relations

Серед завдань трансформації економіки України у ринкову та її подальшої інтеграції у світогосподарську систему чільне місце посідають завдання щодо забезпечення населення продовольством за рахунок переважно внутрішніх джерел, поступового зменшення залежності від іноземних виробників продовольства, створення продовольчої безпеки як важливої складової національної безпеки.

Метою дослідження є аналіз сучасного продовольчого ринку. Для проведення наукового дослідження було використано останні статистичні дані. Порівняння з минулими роками покликане показати динаміку змін, що відбуваються у виробництві сільськогосподарської продукції.

За результатами дослідження висвітлено актуальні проблеми, показано слабкі місця діяльності аграрного ринку. Визначено, що в Україні відсутня цілеспрямована політика формування системи ринків. Саме тому, сучасний аграрний ринок України представлений торгівлею продовольчими товарами без належної інфраструктури продовольчого ринку. Встановлено, що особливістю аграрного ринку є неможливість його освоєння в окремому регіоні. Загальні принципи і єдині підходи повинні втілюватися у життя одночасно у межах національного ринку і на чіткій нормативно-правовій основі.

Вирішення розглянутих питань повинно мати системний характер, про що й наголошується в праці. Більш глибока увага до зазначених проблем знайде своє відбиття у подальших дослідженнях.

Ключові слова: продовольчий ринок, біржовий ринок, збут, бартерні відносини

Среди задач трансформации экономики Украины в рыночную и ее дальнейшей интеграции в мировую хозяйственную систему видное место занимают задачи по обеспечению населения продовольствием за счет преимущественно внутренних источников, уменьшению зависимости от иностранных производителей продовольствия, создание продовольственной безопасности как важной составляющей национальной безопасности.

Целью исследования является анализ современного продовольственного рынка. Для проведения научного исследования использовались последние статистические данные. Сравнение с прошлыми годами призвано показать динамику изменений, происходящих в производстве сельскохозяйственной продукции.

По результатам исследования отражены актуальные проблемы, показано слабые места деятельности аграрного рынка. Определено, что в Украине отсутствует целенаправленная политика формирования системы рынков. Именно поэтому, современный аграрный рынок Украины представлен торговлей продовольственными товарами без надлежащей инфраструктуры продовольственного рынка. Установлено, что особенностью аграрного рынка является невозможность его освоения в отдельном регионе. Общие принципы и единые подходы должны воплощаться в жизнь одновременно в рамках национального рынка и на четкой нормативно-правовой основе.

Решение рассматриваемых вопросов должно иметь системный характер, о чем и говорится в работе. Более глубокое внимание указанным проблемам будет уделено в дальнейших исследованиях.

Ключевые слова: продовольственный рынок, биржевой рынок, сбыт, бартерные отношения

Formulation of the problem

Problems of national food market has not yet found a full and comprehensive coverage in economic literature, the study apply only to certain aspects of the problem. Based on the aforementioned, necessary processing concept formation and subsequent operation of the national food market.

Among the tasks of economic transformation in Ukraine market, further integration into the world economic system occupy prominent task of providing the population with food due mainly internal sources and gradually reduce dependence on foreign food producers, creating food security as an important component of national security.

Analysis of recent research and publications

Theoretical and practical aspects of the formation and subsequent functioning of national food market and the source of its trade provision explored in the works of national and foreign economists V.G. Andriychuk, V.I. Boiko, S. Brynhezi, M. Geiger, O.D. Hudzynskyi, M.G. Lobas, M.I. Malik, V.M. Rabshtyna, P.T. Sabluk, А.M. Shpychack, S.P. Yaroshenko.

Bold unsolved aspects of the problem

The question of optimizing the functioning of the food market are considered without regard to achievements in theory and practice of international experience, globalization of economic relations, not reaching the level of conceptual bases formation and synthesis tools about how to resolve the existing problems.

The aim of the article is the research and analysis of the current food market.

food market national

Basic material research

The subjects of agrarian market are all separated from each other agribusiness management unit managed by its own industrial and commercial interests. But all they need constant renewal of industrial and commercial relationships, as parties to play a single process food and nonfood products made from agricultural raw materials, which are interconnected in series, because everyone is a consumer of resources produced in the previous stage of the reproductive cycle, while - manufacturer resources intended for consumption in the next step [1].

World experience shows that the balance of interests of all participants in a single production process must be established only center with the help of regulatory and legislative instruments. Manufacturers are oriented to the needs and creditworthiness of customers. On these grounds forming mechanism of control of the manufacturer and its economic dependence on the consumer.

The collapse of the mechanism of distribution of food resources and the absence of the market system contributed to numerous intermediaries in the food market. Therefore, sales of agricultural products businesses spend, leading to higher prices and determined the lack of competitiveness of domestic products. This advantage economically developed countries with a market economy in directing almost uncontrollable food exports to Ukraine, the displacement of domestic producers of the food market (Table 1).

Now Ukraine agricultural enterprises with 650 meat processing plants, more than 400 - from dairy, 2100 dairy, about 2000 peeling mills, 4650 mills, more than 13 000 bakeries. However, note that the entry into force of capacities for agricultural purposes is constantly decreasing.

Ukraine has no deliberate policy formation system markets. It is a modern agrarian market of Ukraine presented food trade without adequate infrastructure of the food market. Evidence of this is the current market grain, sugar, sunflower seeds, etc., although the food market presents many other products and commodities.

1. Agricultural production for 2010-2015*

Years

Years

Plant growing

Stockbreeding

2010

41472

24631

2011

41854

24778

2012

42006

24989

2013

41885

23657

2014

41572

23683

2015

41568

24110

2015/2010

0,3

-2,5

*Source: State Statistics Service of Ukraine.

Grain trade public and private enterprises

Most of the trade is barter (wheat, fuel, grain and mineral fertilizers, grain next harvest, machinery and spare parts, etc.). The only agent responsible for channeling funds from the state budget for the purchase of grain for 2015 was HOOK "Bread of Ukraine" [2].

In addition to large traders, there are many small informal traders who buy grain from producers and help to form large "lots" of large firms or exchanges. However, we note that in agricultural exchange a small amount of grain. Most of the wheat produced is consumed within Ukraine: the farm use (including animal feed) accounts for 44% of total production.

State of the grain market of Ukraine is largely dependent on the level of production, which now tends to decrease. In the production of grain and other apparent negative trends:

- significant fluctuations in gross grain harvest in years, due to lack of stability of yields of cereals;

- the gross production of grain excessive share of wheat in the first winter, and lack grain crops that negatively affects the feeding of animals, limits opportunities to increase their productivity and leads to significant cost overruns specific feed for livestock products;

- gradual reduction of acreage crops for their lack of yield;

- lack of technical and technological provision of grain, almost 1.5 times increased load harvest area for one combine harvester;

- reduction of organic and mineral fertilizers; deterioration of chemical products; lower quality seed; lack of adaptability to manufacture;

- the dependence of grain production on weather conditions;

- imperfect pricing.

Grain production is of strategic importance not only in agriculture but also in Ukraine's economy, because, along with sugar beet production of sunflower oil and it belongs to the priorities of agricultural production. But lately a trend decline in grain sales, in particular by wholesale trade, which absorbed a third of the total sales of grain. Although the technical capabilities of enterprises on post harvest grain processing and storage units sufficient wholesale hampered by insufficient purchasing power of consumers, underdeveloped network of agricultural exchanges and their affiliates [3].

Exchanges are not the only sales channel grain, because they trust not all producers, assuming reasonable to get at the grain grown in cash and not through non-cash payments. Because the OTC market does not depend on developments in the markets.

Organization of the exchange market - a lever to improve the efficiency of implementation and achievement of parity prices for the products of the agricultural sector and industry. By commodity and financial interventions the government can actively influence the pricing mechanism, the formation of supply and demand. Therefore, in order to avoid significant fluctuations in grain supply. Cabinet of Ministers of 24.09.97 p. Number 1062 "On further development of the grain market in Ukraine" was established State Investment Fund stabilize the grain market of Ukraine as a part of the State Joint Stock Company (SJSC)"Bread of Ukraine".

It is through the purchase transaction is removed from the market yield years a number of food and feed grains, stabilize for a short period market by reducing the excess supply immediately after harvest, and in the lean years of increase, maintaining the level of market prices of the domestic market of Ukraine and preventing damage producers and consumers. The objectives of the Fund include: research, observation and analysis of the grain market; study forecasts and proposals for development of the grain market in Ukraine and its regions; stabilizing the purchase and sale of grain reserves and related operations; preparation of studies need to take stabilization measures and submit them to the State commission on forming food market.

In order to encourage grain production and support of agricultural producers, a significant reduction in adverse effects and seasonal fluctuations in prices for grain and bakery President of Ukraine signed a decree "On urgent measures to stimulate production and development of the grain market" (29.06.2000 p. Number 832/2000), which proposed Cabinet to introduce a system of urgent measures to stimulate production and improve regulation of the market of grain and grain products, which provide promotion of grain for money through a transparent market infrastructure (exchanges, auctions, trading houses) [4].

The approved program of stabilization and gradual increase in grain production, infrastructure development and economic mechanisms to optimize the grain market and grain products placed on the joint-stock company "Bread of Ukraine". In regions provided determine the amount of grain purchases relative to regional needs, based on the balance of the grain, the financial capacity of the regions and support the minimum needs of the consumer market, to arrange mortgage grain purchases using local budgets and credit.

On the SAC (State Joint Stock Company)"Bread of Ukraine" entrusted with the purchase of state resources to food grains and high-quality seeds, it is allowed to conduct business relative to grain, its products and not raw corn on state, regional and other needs.

An important sector of the food market of Ukraine is the sugar market.

Flow charts of sugar beet and sugar production plants in Ukraine have significant differences from European, though inferior to them in terms of technical solutions and automation.

In Ukraine remains very imperfect mechanism of settlements between enterprises and beet sawing sugar factories, not improves operating conditions beet sawing enterprises and refineries sometimes leads to bankruptcy [3].

Today sugar beet complex food away from centralized production management products liberalized sugar prices. This means that the industry is unregulated in terms of, natural, destructive market. Problems sugar beet complex product largely generated by the general economic crisis, increasing the number of negative subjective factors, including such as the preservation of administrative and distribution methods in the regulation of economic processes, lack of market experience, management personnel, a clear export policy.

Provisions to ensure the competitiveness of sugar beet complex lies in increasing productivity, based on the protection of crops from diseases, pests and weeds, optimizing raw material zone of sugar factories, increasing raw sugar, modernization sugar beet processing toll industry.

Consequently, the number of sugar factories in Ukraine is practically the same. The yield of sugar beet in the period increased from 147 to 197 kg / ha (34%). Significantly reduced sugar content. Note that the performance is much inferior Poltava region than in Western Europe and the uSa. Violation of parity prices of agricultural and industrial products, loss of markets sugar, low purchasing power of the population of Ukraine is forced to transition agriculture toll processing of raw materials led to overproduction of sugar visibility [5].

Sugar beet processing toll is not profitable sugar factories and producers of raw materials. In the absence of equity in factories, government concessional loans, processing of sugar beet by tolling scheme allows plants to work, and manufacturers of raw materials at a minimum level to provide themselves with logistical resources.

The impetus for improvements in the production of major agricultural products was demand on the external market.

As an example, it is possible to raise the price of sunflower seeds to the world level, ensured the profitability of production. Ukrainian producers managed to increase the offer and meet the demand through traditional comparative advantage sunflower seed production in Ukraine, eliminate state control, which contributed to the free development of market relations. In Ukraine there are 17 enterprises with sunflower seed, most of them privatized, to some extent hurt their effective functioning.

Changes in prices for the products of the agricultural sector, including sugar beet and oilseeds, characterized by positive shifts.

Barter relationships between producers and trade organizations are widely used distribution channel, but gradually reduced. The level of market prices of agricultural products in Ukraine is largely dependent on sales channels, manufacturers are most favorable on barter.

Export to the CIS countries, especially Russia, is complicated by the introduction of value added tax of imported goods from Ukraine and increased competition in the market. Over the past 8-10 years Structure of crop production has evolved from single-channel to multi-channel. This is a positive and negative changes. The negative should include the implementation by barter and population at the expense of wages; positive - growth of sales in the market.

Conclusions

The practice of recent years clearly shows that the regulation of food market monetary and fiscal means at the macroeconomic level did not provide full-fledged operation of enterprises of the agricultural sector.

The feature of the organized agricultural market is that it is impossible to learn in a particular region. General principles and common approaches should be implemented into practice simultaneously in the domestic market and a clear regulatory and legal basis.

References

1. Berezin, O.V. (2014). Food Market in Ukraine: theoretical and methodological principles of formation and development: Monograph / O. V. Berezin. K.: Center of educational literature, 184.

2. Katerina, T.P. (2005). Food Security: Regional Aspect / T. N. Katerina // Actual problems of governance: Coll. Science. works. H.: Master, 2, 96-101.

3. Ofilenko, N.A., Kaynash, A. P., Kalashnyk, O. Moroz, S. E. (2011). Market and resources of consumer goods. Teach. guidances. K.: Center of educational literature, 184.

4. Sabluk, P.T. (2009). Food security Ukraine / P. T. Sabluk., O. H. Bilous., V.I. Vlasov // Economy AIC, 10, 3-7.

5. Sheremet, A.D. (2008). Methodology Financial analysis activities of commercial organizations. [2nd ed., Rev. and additional.] [Electronic resource] / A.D. Sheremet, E.V. Nehashev. Moscow: INFRA-M, 208. Access: http://www.alleng.ru/d/econ-fin/econ-fin322. htm. Name of the screen.

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