DEVELOPMENT OF THE INFRASTRUCTURE OF THE MARKET OF HIGH QUALITY LIVESTOCK PRODUCTS IN UKRAINE
Main Article Content
Abstract
Introduction The lack of effective infrastructure elements, especially forms of wholesale trade in high-quality livestock products (PA), is an important destabilizing factor. At the stage of wholesale and retail trade, flows of high quality livestock products are often mixed with flows of counterfeit products. As a result, consumers of livestock products remain disoriented, and producers of high quality products do not have guaranteed sales channels for their products. Thus, the formation of a full-fledged infrastructure is one of the necessary prerequisites for the development of the market of high quality livestock products.
Purpose of the article is to develop a theoretical, methodological and empirical basis for the development of market infrastructure for high quality livestock products in Ukraine.
Results. The study has substantiated the algorithm of improvement of economic relations between members of integrated formations in animal husbandry which should be based on distributive relations on the basis of transfer pricing. The authors emphasize that the improvement of relations between producers and processing enterprises (food industry enterprises) in the market of high-quality livestock products should be based on the use of indicative price tools. Algorithms for calculating indicative prices for high quality livestock products have also been offered by the authors. The authors’ proposal to introduce a mechanism of indicative prices and indicative planning in the market of livestock products should increase the share of producers in the price of final products, lead to the emergence of the necessary investment resources to intensify production and implement quality management systems. Indicative planning based on the proposed model will reduce the price of high quality final products, make it more affordable for consumers. The formulas for calculating prices for high-quality livestock products - livestock products with protected designation of origin (PDO), protected geographical indication (PGI), traditionally guaranteed feature (TGF), as well as organic livestock products are proposed. The mechanisms of coordination of joint actions of agricultural producers in the markets of high-quality livestock products on the basis of their creation of district service and marketing cooperatives (DSMC) have also been substantiated. Theoretical model of theoretical model of formation and functioning of DSMC is substantiated. The study as well offers the mechanism of conducting auctions on sale of whole milk on the basis of DSMC.
Originality. The study has improved the algorithms of transfer pricing by state bodies setting indicative prices for high-quality livestock products. The authors offer to calculate the value of the indicative price on the basis of the use of the reverse model of calculation of indicative prices improved by the authors. In this model, the cost of agricultural raw materials is determined in reverse order: retail price of final products → selling and wholesale price of final products → costs of processing agricultural raw materials → indicative (transfer) price of agricultural raw materials (livestock products). The reverse model makes it possible, first, to determine the contribution of each participant in the price chain in the value of the final product; secondly, to prevent price discrimination of producers due to understatement of purchase prices; thirdly, to prevent tax evasion and the accumulation of value added in offshore areas due to understatement of transfer prices for the export of food of animal origin.
Conclusions. It was found that the attempts to assess the effectiveness of the livestock products market infrastructure only from the standpoint of a monosystem approach may lead to unfounded conclusions. After all, it may turn out that seemingly successful (super-profitable) elements of the system practically do not perform their functions. The same applies to promoting the growth of quality parameters of products. The efficiency of the livestock products market infrastructure (one of the main functions of which is integrating and servicing) is an external attribute and characteristic to this system. Within the framework of the polysystem approach, the system efficiency indicators (profitability of livestock products production, product quality parameters, price level for high-quality products purchased from producers and final products purchased by consumers, consumption of food of animal origin per capita, etc.) are functional. Their main advantage is the unambiguous connection with the functions of the system and the dependence on the effectiveness of the relationship between infrastructure elements and elements of the super system (agricultural producers and consumers, the state). Accordingly, this should determine the specifics of the study of the infrastructure of the livestock products market and the effectiveness of its operation, as well as public policy to promote its development.
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