FORMATION OF DEMAND ON THE GRAIN MARKET: PROBLEMS AND WAYS OF SOLVING THEM

Abstract

Introduction. The ratio of grain supply and demand on the national market is one of the most “sensitive” points in ensuring food security and maintaining social balance in the country. The market model of the functioning of the agrarian economy allows to ensure balanced parameters of these categories, economically stimulating the increase or reduction of the commodity weight of grain on trading platforms, prioritizing the choice of participants in market relations with the efficiency of production and the value of consumption.

Methods. Research methods are based on general scientific principles and fundamental provisions of economic theory and statistical science. In the research process, the following general scientific methods of cognition were used to solve the tasks: dialectic, system analysis, scientific abstraction, observation, comparison, generalization, modeling; as well as traditional economic and statistical methods: index, generalizing statistical indicators and intensity of dynamics.

Results. We believe that in the direction of stimulating demand on the grain market, it is necessary to adhere to the following vectors of movement and emphasize the main ones: evaluate the capacity of foreign markets for grain and its derivatives, taking into account the sufficient supply of domestic demand; to reduce the level of protectionism in domestic markets, while simultaneously increasing the influence on foreign ones; apply mainly indirect methods of regulating market relations on the market of grain and its derivatives; take into account the global experience of supporting manufacturers at all phases of goods movement; actively support the introduction of new methods and approaches to processing, collection, storage and processing of grain, capable of increasing competitive advantages, both in domestic and foreign markets.

Discussion. The priority direction of future reforms is the improvement of the paradigm of food security, the transition from understanding it as self-sufficiency to its perception as the economic ability to ensure the satisfaction of the needs of the population using foreign trade instruments – exporting agricultural products, in which Ukraine has natural and historically formed advantages, and importing those costs for domestic production is clearly higher than import costs.

When considering the prospects for the development of the grain production sector, it is necessary to take into account the fact that Ukraine is not a favorable natural area for the cultivation of the most valuable wheat varieties in terms of bread-making. Measures for the development of grain production and agrarian policy in general can try to stimulate the cultivation of hard and particularly valuable varieties of cereals, especially wheat.