Food Industry <br />Economics

Food Industry
Economics

ISSN Print: 2312-847X
ISSN Online:2411-4111
ISO: 26324:2012

COOPERATIVE ASSOCIATIONS IN DEVELOPMENT OF INFRASTRUCTURE THE GRAIN MARKET UKRAINE

Nikishina O.V

Key words: grain cooperative;infrastructure market;sales channels;cooperative elevator;efficiency of realization grain

Page: 21-31

Abstract

Marketing system the grain market of Ukraine has such deformations: (1) dominance in structure of
grain sales the opaque «other channels» (86,8 % in 2013); (2) reducing share of grain, sold to processing
enterprises, with 80,4 % in 1990 to 4 % in 2013; (3) dependence of direct producers grain from pricing policy
traders and regional elevators; (4) reducing quantitative, financial and information transparency of grain trade
flows; (5) presence of intermediaries in grain trade, increase cost of grain processing products. Overcoming
these deformations stipulates the necessity diversify existing sales channels, developing cooperative channel
of realization grain crops.
Foreign experience of functioning cooperative associations demonstrates their leading role in grain
markets of France, Germany and Canada. In Ukraine, in 2013 there were a total of 26 grain cooperatives
(4,6 % all agricultural cooperatives). Main reasons that hinder the development of grain cooperatives, are
imperfect system of taxation and low level of state support.
Purpose of grain service cooperatives in Ukraine is to increase efficiency and optimization of sales
channels grain crops, produced by small and medium-sized enterprises (legal entities) and farms of the population
(individuals) in internal and external markets. Functioning system grain cooperatives generates of trinity
expected effects. Economic effect is achieved by a reorientation of trade flows grain with opaque «other channels
» in organized cooperative network, growth of value added the grain, overcome of information asymmetry
market. Environmental effect involves improving the efficiency of land use and soil fertility, social effect - provision
of rural employment, state food security.
Functioning as part of a regional service cooperative the cooperative elevator aims to provide profitability
of direct producers grain. Conducted author calculations have proved higher efficiency of cooperative
channel of realization grain crops relative with intermediary channel.
Forms of state support cooperative associations may be priority inclusion of grain cooperatives to
participate in programs to stimulate the production of of grain crops with desired quality parameters, «green»
programs for creating food reserves


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