DEVELOPMENT STRATEGY OF THE GRAIN MARKET OF UKRAINE FOR EXPORT

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  Kateryna Malinoshevska

Abstract

The grain market is a sphere of grain circulation, strategic interests for multinational corporations, which includes its processing. The growth in demand for wheat is due to the growing population in the world and other factors that affect the country’s food security. Communication interaction between producer and consumer creates an organizational system in the form of various forms of markets: markets, fairs, auctions, exchanges and more. The trend of increasing the cost of grain is observed around the world because production volumes are insufficient to meet all the needs of the population. The grain market is the main lever in the Ukrainian market. The strategy for the development of grain crops affects the reproduction of the country’s economy as a whole and changes in macro and microeconomic indicators. The climatic conditions of the regions are important factors for the prosperity of the grain market and ensuring yields. A favorable political climate is impossible without the export of domestic products, namely grain. Many countries cannot produce enough grain and import it. A significant share of grain production is concentrated in developed countries, so ensuring it is an important issue around the world, the solution of which is to finance the import of grain crops, including wheat. Ukraine has a huge land potential (chernozems), as well as the prospects and opportunities to expand areas for sowing, thus increasing grain production and strengthening its position in the world market. Grain is an important type of product and has its own versatility, a number of countries around the world annually purchase significant volumes of sourdough products. Ukraine fully meets its domestic needs and is one of the exporters of grain to the EU and the world. Increasing grain yields will help increase production. Due to its uniqueness and long storage time, grain remains a necessary component of the population’s life. Not every country is able to increase production, for this it is necessary to apply strategic measures, in particular in agricultural policy. This is intervention in the grain market, agricultural subsidies and others. Grain resources consist of stocks of previous periods, production and imports. In Ukraine, grain production is increasing. Demand for quality products exists in both domestic and foreign markets. High commodity grades of wheat can be produced under favorable natural conditions, so additional investment in growing quality products is a significant economic lever that ensures the economic growth of the country. Methodology. The purpose of the article is to analyze the grain market and study the role of the state in building a strategy for the development of grain exports. Empirical research methods were used in the study. A comparison of the main indicators of the world grain market and Ukraine’s place in it was made. Due to the use of theoretical research methods, in particular analysis and synthesis, the main features of the grain market were identified and characterized. The main factors influencing the development of the world grain market were identified. High quality of grain production and processing increases the country’s competitiveness on the world market. Results. According to the results of the study, it can be concluded that over the past year, despite the trends of coronavirus in the country, Ukraine has strengthened its position and taken a leading position in the production and export of cereals. Factors that affect grain yields in the world also affect yields in Ukraine. Practical implications. During the strategic analysis in our case, we found that the world grain market is affected by many factors: reducing the area for planting in developing countries, increasing grain use, wheat is beginning to occupy a leading position as a food crop, increasing cereal consumption by traditional rice producers, especially in China. The volume of export resources and competitive products is an important advantage of Ukrainian products on the world market. Practical studies have shown that the volume of production and export of Ukrainian grain to international markets also depends on the world grain market. Value/originality. These studies make it possible to determine the country’s place in grain exports to international markets and factors influencing the development of international trade.

How to Cite

Malinoshevska, K. (2021). DEVELOPMENT STRATEGY OF THE GRAIN MARKET OF UKRAINE FOR EXPORT. Green, Blue & Digital Economy Journal, 2(2), 47-52. https://doi.org/10.30525/2661-5169/2021-2-7
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Keywords

market, grain, balance, wheat, production, consumption, exports

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