Trends in the Development of the Ukrainian Compound Feed Market Amidst Instability
DOI:
https://doi.org/10.58423/2786-6742/2024-5-145-162Keywords:
relevant market, market sectors, combined feed products, development trends, dynamics, sector analysis, instability, resilience, export, import, recoveryAbstract
The market of combined feed products of Ukraine has significant production and export potential in the direction of deep processing of grain, the implementation of which will allow to mobilize internal resources, increase added value and form the foundation for the post-war revival of the state.In the conditions of instability, the development trends of the relevant market have changed, which actualizes the task of conducting new analytical studies in the context of market resistance to internal and external threats. The purpose of the study is to analyze the trends in the development of the domestic compound feed market in the sectoral dimension (raw materials, processing, distribution and sales and consumer sectors), determination based on its results of the main problems of the relevant market and ways of solving them in the context of resilience and strategic tasks of the post-war recovery of Ukraine. The work established that during the war period, the resilience of the processing sector of the market was higher compared to the export-oriented raw material sector. In 2022, compared to 2021, the production of grain decreased by 37,4 %, compound feed by 12,3 %. A distinctive feature of the processing sector is the oligopoly type of relations: more than 60 % of products in Ukraine are produced by agricultural holdings. The product structure is dominated by compound feed for poultry and pigs (61% and 21%). The dependence of dynamic and structural changes in compound feed production on trends in the development of animal husbandry, primarily poultry farming, has been established. In Ukraine, the main consumer of combined feed products is agricultural enterprises: in them, the share of compound feed in the structure of feed of all types is 65 %, while in households it is only 3 %. The financial instability of peasant farms, which grow 59 % of cattle and 85 % of sheep in the country, is the main factor in reducing their use of compound feed (by 71 % compared to 2020). Current trends in foreign trade are a stable negative balance for product group 23099 «Feeds for agricultural animals», an increase in the growth rate of import of products over the growth rate of export, ahead of the increase in the level of import prices compared to export prices. The economic problems of the resilience of the functioning of the relevant market in the sectoral dimension and the vectors of their influence on the market processes of reproduction are determined. On the basis of the experience of the EU, the strategic directions of ensuring the resilience of the compound feed market of Ukraine in the post-war period are substantiated. It was emphasized that the main tasks for the processing sector are the development of a competitive environment, ensuring the competitiveness of products on the domestic and foreign markets, and the introduction of innovative developments, in particular, biotechnologies. The applied significance of the obtained results is determined by the possibility of their use by state and specialized institutions during the development of adaptive mechanisms of selective regulation of the compound feed market.
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