Affiliation:
1. Stepan Gzhytskyi National University of Veterinary Medicine and Biotechnologies Lviv
Abstract
The problems of formation agricultural market are discussed. The release of levers of state influence on economic entities was carried out without the development and implementation of agricultural policy aimed at forming the agricultural market and its infrastructure. Due to the inadequate level of market infrastructure, there are a lot of problems in finding distribution channels on an alternative basis. Small enterprises found themselves in the worst conditions. They often cannot bring products to market. Products are sold to individual purchasing organizations that have monopolized the market. Because of this, prices are very volatile. Manufacturers cannot adapt to such prices. It is impossible to develop business plans and apply for bank loans. This hinders the formation and development of farms. Their number has been declining in Ukraine in recent years. The simplification of the procedure for their establishment and the possibility of establishing these farms without state registration as legal entities did not increase the number of farms.
Organizational and financial efforts of state agricultural management bodies aimed at forming service cooperatives are fruitless. Opportunities for these cooperatives to perform the functions of market infrastructure, organization of product processing and branded trade were dropped from the field of view. The wholesale markets for agricultural products created in Ukraine are more acceptable for business entities engaged in commercial activities on a permanent basis than for agricultural producers. The auctions are not held there. Retail and small wholesale trade predominates throughout the day.
In the conditions of the initial stages of formation agrarian market and its infrastructure in Ukraine, especially large holdings are developing. They form their own distribution channels and bring products to foreign markets where prices are more stable. A limited range of raw materials is produced. Imports of processed products are growing. It is proposed to direct the state agricultural policy to the creation self-regulatory vertical and horizontal marketing systems. State intervention prices will be formed there. That are acceptable to all participants in market relations.
Publisher
Black Sea Research Institute of Economics and Innovation
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