ORGANIZATIONAL AND ECONOMIC BASIS OF FUNCTIONING OF THE WORLD GRAIN MARKET
Abstract
Today the world market of grain products remains one of the key and strategic vectors of domestic exports of agricultural products. Any changes or trends in this market have a direct impact on the state and dynamics of agricultural exports of Ukraine, as a country that is one of the key market players.In modern business conditions, this market is under the lens of constant monitoring. The results of these studies contain valuable information about market conditions, which is necessary for the development and adoption of management decisions.
The grain market is an open organizational and economic system through which economic entities realize their own economic interests in the field of export-import of grain products. The studied market is endowed with the following characteristics: integrity, hierarchy and integration.Exploring the organizational and economic principles of the world market, it is important to study the laws and patterns, as the state of development of this market directly affects the development of related industries and industries. In addition, it should be recalled that grain is a key element of food security of any state. This explains the excessive interest of countries in their participation in this market.
The functioning of the world grain market can be reduced to the following goals:providing the population with basic necessities; providing grain related industries; development of logistics directions from producers to end consumers; carrying out of daring works and realization of commodity interventions in the grain market; cultivation of export consignments of grain.
In the process of development of economic interaction between the subjects of the world grain market, the so-called integration models of producers and consumers of grain have been formed, which represent legally independent companies and various non-profit associations. Such relationships are formed as a result of joint production and marketing activities, mutual settlements, and so on.
In the process of studying the peculiarities of the principles of the world grain market, it should be noted that grain, as a guarantor of food security is also a source of wealth. In addition, grain is a commodity in both domestic and foreign markets, and the grain market is one of the most perfect and predictable in the world.
The main factors that can affect supply and demand in the grain market are the pricing policy of potential exporters, domestic prices, transitional stocks, the state's ability to carry out commodity interventions, the pricing policy of importing countries.
Given the fact that grain as a commodity is not expensive, so the profitability of its export will be slightly higher in the case of large-scale export deliveries. The engine of development of the world grain market is: price, competition, supply and demand. In this case, demand is characterized not so much from the standpoint of purchasing power, as taking into account the regulatory demand for grain. The continuity of the grain market can be ensured by strong competition, which is possible due to the large number of market participants who are unable to influence the market price.
At the present stage of management, most developed countries, in the context of food security and economic independence, develop their economic policies based on the support of grain stocks. Thus, applying elements of the policy of protectionism, the government, first of all, cares about the protection of domestic producers. Leading grain-exporting countries use economic mechanisms to regulate production as a means of state support.
Modern state levers of influence on the formation and development of agriculture in the highly developed countries of the world are formed from two elements - institutional and instrumental. The former are disclosed through the activities of public authorities, and the latter are expressed in regulations referred to by regulatory authorities in the course of their work.
