STRUCTURAL AND FUNCTIONAL FEATURES OF THE MARKET VEGETABLE PRODUCTION IN UKRAINE
LOGOSHA Roman – Doctor of Economic Sciences, Associate Professor, Associate Professor of
the Department of Marketing and Agribusiness, Vinnytsia National Agrarian University (21008, Vinnytsia,
3, Soniachna Str., email: firstname.lastname@example.org).
In the context of aggravation of the food problem of particular scientific, theoretical and practical importance, research into the development of the agrarian market and its individual branches at the world and national levels becomes more important. An important component of the domestic agricultural market is the vegetable market.
The purpose of the article is to analyze, substantiate the theoretical and practical provisions of the formation of structural and functional features of the vegetable market in Ukraine and develop practical recommendations for ensuring its effective functioning in the context of global transformational changes.
Market reforms in the agro-industrial complex of Ukraine have proved the need for a radical restructuring of the whole system of economic relations, which covers simultaneously production, distribution, exchange and consumption of agricultural products. This is also relevant for the domestic vegetable market, which is a specific and sufficiently autonomous sector of the agricultural market.
Structural data describing the role of vegetable growing in Ukraine in the domestic agro-industrial complex give grounds for claiming clear imbalances that generally favor the industry, outlining its prospects and, consequently, the sources of relatively smaller losses suffered by domestic vegetable production during the 1990s market reforms.
The vegetable market is a system in which the economic interests of producers and consumers are harmonized in the free sale process. Consumers are individuals as well as various organizations – processing, storage, wholesale and retail. Producers and consumers of vegetables are actors in the infrastructure of the food market.
In turn, the vegetable industry has a number of specific features, such as: low transportability of produce, whereby vegetables need to be grown close to places of consumption; ut-ore mechanization of individual production processes, especially storage, which requires considerable manual labor; a large set of cultivated crops, each of which has a special agricultural technology; the need for employees of a certain specialty; special organization of commodity processing, storage and sale of vegetables; high complexity of work, which leads to high total costs.
A fully functioning vegetable market includes a set of several components of the market mechanism that forms the core of this market and its individual specialized markets and market infrastructure in the interconnection and interaction of such. Each component is formed from structural elements, which are the most important parameters of the vegetable market that affect both producers and consumers. In addition, a special place belongs to the mechanism of state regulation, which is designed to ensure the effective functioning of the market mechanism.
In order to analyze the factors influencing the changing level of the vegetable market, it is advisable to conduct research in the following areas: supply, demand, price situation, state regulation, trade and market infrastructure.
Thus, the main elements of the market for vegetables are demand and supply for vegetables, which are sold through wholesale and retail. The level and dynamics of market prices are influenced and conditioned by structural changes in the production and sale of vegetable products, the balance of supply and demand, as well as environmental factors. It is well known that both the price and the non-price factors influence the amount of demand. At the same time, market demand for vegetable products is shaped by factors such as the number of potential consumers, the size of their income, the quality and price of vegetable products and the price expectations of buyers.
Changing the structure of vegetable production, deepening the globalization of foreign economic activity affect the nature of the formation of market infrastructure of vegetable products, the adaptation of its elements to environmental conditions. In turn, the sectoral infrastructure of the vegetable market has a complex impact on economic development at the micro, macro and mega levels.
The mechanism of formation and functioning of the vegetable market is a process of harmonization of a complex multi-level system of economic relations arising between market entities that perform the functions of wholesale trade, transportation, storage, standardization and certification, price monitoring, communication and consulting services that call producers of vegetable products. This, in turn, contributes to ensuring food security of the country through effective relations between the participants of the domestic market of vegetable products in the direction of increasing production volumes and improving the quality of production.
The main prerequisites for a full-fledged development of the vegetable market are primarily related to changes in its market environment based on the laws of the functioning of the markets. At the same time balanced supply and demand in the vegetable market, competition based on improvement of product quality, creation of market infrastructure, marketing services, development of information support systems, effective state support are objective prerequisites for the creation of a complete domestic market for vegetable products.
Therefore, the modern vegetable market is a complex system of production of processing, distribution, exchange and consumption of vegetables, which is formed under the influence of internal factors, depending on the situation of the internal and external food markets. The efficiency of functioning of the vegetable market in Ukraine depends on the rational development of agro-industrial production as a whole and on the market infrastructure.
The subjects of the domestic market of vegetable products are faced recently with fundamentally new challenges and problems, caused by the socio-economic consequences of globalization processes, first of all significant adaptation and improvement of the market infrastructure of the agrarian market, providing maintenance of market process for its stability, commodity exchange, commodity exchange transparency and efficiency. At the same time, the defining feature of the domestic infrastructure of the vegetable market in Ukraine is a significant lag behind the requirements of both the producer and the consumer. Therefore, the necessity of forming a new, more adapted to modern conditions of infrastructure is actualized, which is possible only if the basic conditions and principles of its formation are observed.
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072 Finance, banking and insurance
076 Business, trade and exchange activities
241 Hotel, restaurant and catering
281 Public administration
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