Food Industry <br />Economics

Food Industry
Economics

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

EFFICIENCY THE TWO-LEVEL MECHANISM THE STIMULATE PRODUCTION OF GRAIN LEGUMES FOR DOMESTIC PROCESSING AND CONSUMPTION IN UKRAINE

Nikishina O.V

Key words: system of adjacent markets;value added;reproduction and tax effects;profitability of regulation

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Abstract

Ukrainian market the mixed fodder products belong to the category of integrated commodity markets with
strong production potential of sustainable development. Today, this potential is used inefficiently. As a result, capacities
fodder enterprises loaded by 20-30%, their products have low quality and high cost, for the production of balanced
mixed fodders using only 27 % of feed grain.
Providing equilibrium of system markets, adjacent to market mixed fodder products, stipulates necessity introduction
of the reproduction mechanisms of their regulation. For example, in European Union is a mechanism of subsidizingthe production of combined feed, which are made from its own resources. Also functioning system the hectare compensation
payments for the crops grain, which is part of measures “blue box”.
Considering European experience, the author substantiated structure, system of requirements and limitations of
two-level mechanism the stimulate production of high-protein grain legumes for domestic processing and consumption in
Ukraine. Realization of this mechanism involves granting budgetary subsidies to producers of grain crops at a rate
900 UAH / ha and price compensation to livestock producers at a rate 88 UAH / ton. Main condition is a priority participation
in program for national producers of seed, grain, mixed fodders and animal products. The main limitation is the export
ban grain legumes that subsidized by the state, and the selectivity of program participants. Is suggested to give priority to
cooperatives (of grain and milk).
With using system developed criteria, the author assesses the efficiency budget of incentive mechanism. Evaluation
results proved the possibility of obtaining significant tax and reproduction effects in system adjacent markets, while
catalyst of growth the value added and taxes are production sectors of markets seed, grain, feed and animal products. Profitability
of regulation reached 28,6 %, level “break even of budget” amounted to 1239 UAH/ha. Thus, introduction of an
incentive mechanism will enhance the level of capacity utilization and profitability fodder enterprises, increase tax revenues
and social contributions of subjects the relevant and related markets.


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DOI: 10.15673/2312-847x.26/2015.44029

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