*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