Agrarian Economy 2019 Т. 12 № 1-2:59-67

PRICE ENVIRONMENT AND ITS IMPACT ON ECONOMIC BEHAVIOUR OF AGRICULTURAL ENTERPRISES

Pertyshyn L., Doctor of Economics, Associate Professor
0000-0002-1871-2837
Lviv National Agrarian University

https://doi.org/10.31734/agrarecon2019.01.059

ANNOTATION

The article compares price trends in the national and world agro-food markets. The relevance of the study is determined by the need for a reliable assessment of the relevant trends in the formation of agricultural development strategies. At the same time, its results allow the government to make informed decisions in choosing the directions, forms and methods for regulating the development of agro-industrial complex. The purpose of the study is to assess the degree of interconnection between the prices of world and domestic agricultural food markets, the object - the economic relations that underlie it. It was found that during 2000–2016, FAO price indices for the main groups of agricultural products and price indices for similar types of raw materials produced by agricultural enterprises in Ukraine coincided approximately. At the same time, the rates of growth of prices for the corresponding types of foodstuffs in the domestic market were significantly lower, primarily due to the low level of households' solvency. Such a correlation between price trends is characteristic both for the agro-food market as a whole, and for certain types of products. The conclusion is made about the extremely limited possibilities of the Ukrainian government in the field of price regulation of the agro-food market and the necessity of using forms and methods of non-price regulation of development of agro-industrial complex. On the basis of the generalization of the scientific views of domestic and foreign scientists, it was concluded that the price environment for the development of agricultural enterprises in modern conditions is not national but international. Accordingly, the level and the dynamics of prices on the agro-food market are determined primarily by trends on the world market and not on the domestic market. In view of this, the adoption of any measures aimed at price regulation of the operation of national or regional agri-food markets can not be considered effective by using funds allocated for this purpose. It should take into account the effect of the principle of the time lag of the reaction of agricultural enterprises on the impact of factors of the internal and external environment.

KEY WORDS

price indices, agro-foodmarket, Ukraine, enterprises, relations, trends

FULL TEXT

LINK

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Article received 30.05.2019.