PRINCIPLES AND METHODS OF PRICING FOR HIGH QUALITY ANIMAL PRODUCTS IN MODERN CONDITIONS

Iryna KYRYLIUK, Yevhenii KYRYLIUK

Abstract


Introduction. A key element of the study of economic relations in the high-quality animal products market is the disclosure of the theoretical and methodological bases of pricing. Pricing processes directly affect the results of public reproduction in the agricultural sector, determine the satisfaction of the population's needs for basic animal products. The problems of securing high rates of livestock intensification in the current conditions and raising the standard of living of the population cannot be solved without establishing an effective pricing mechanism and harmonization of price proportions in the agro-industrial complex.

The purpose of the article is to determine the principles and methods of pricing for high quality animal products in modern conditions.

Results. The need to develop a systematic concept of price based on the study of the impact on the price of a number of interrelated factors is substantiated. To substantiate this concept, the toolkit for the concept of alternative value of goods was used. It is proved that price is a form of monetary value of goods. It is formed under the influence of a system of pricing factors (economic, technological, psychological, political, etc.) that have different orientations and potentials of influence depending on a particular situation for a certain period of time. The pricing process is related not only to production but also to market conditions. The principles and methods of pricing for high quality livestock products in modern conditions are determined. The basic principles of pricing, along with the scientific, goal-oriented, continuity, include the principles of proportionality and adequacy. It is concluded that the application of pricing methods with a focus on demand and competition in the context of large scale falsification of products, with the predominance of oligopolistic environment does not ensure the establishment of a price for high quality animal products, which will guarantee at least a simple reproduction.

Originality. Theoretical approaches to substantiating the systematic concept of pricing for high-quality livestock products have been further developed. Such approaches are a logical continuation of the part of economic theory that has been called value theory by prominent representatives of economic thought. A conceptual clause has been formed whereby value as an economic category expresses the subjective aspect of the perception of the goods, both by the consumer (on the basis of its usefulness, rarity), and by the producer (on the basis of awareness of the alternative value of the goods, i.e. the value of lost opportunities from alternative use of resources).

Conclusions. The existing animal husbandry support methods in Ukraine are insufficient and ineffective and do not provide equivalent cross-sectoral exchange. Partial compensation for interest rates on loans, some subsidies for livestock production and milk production, and partial compensation for fixed assets indirectly influence the increase in animal products production. For a commodity producer, the main motive for his activity is to obtain income from the sale of products, at the expense of which it is possible to cover the available costs. Therefore, the most rational method of stimulating the production of high quality animal products is the introduction of a mechanism of government support for purchase prices, which will create economic interest in increasing its output and sale.


Keywords


cost, value, price, system conception of price, principles of pricing, methods of pricing, active pricing, passive pricing, price adjusting, animal products

References


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