Economic sciences / 6. Marketing and management

Cand.Econ.Sci. Baranova N. A.

A. Baitursynov Kostanay state university, Republic of Kazakhstan

GRAIN MARKET AS ECONOMIC SYSTEM

The analysis of references showed that there are various points of view on consideration of the grain market, the particular interest among them has opinion on consideration of the market of grain as economic system. It should be noted that we share this point of view, however we consider that it isn't finished a little therefore we will state the position on consideration of the market of grain as economic system below.

The grain market has to represent not a casual set of numerous managing subjects and communications between them, and the organized and adjustable economic system. It causes need of its system analysis. Considering the grain market from this point of view, it can be presented as the system consisting of three interconnected subsystems: resources and needs for grain and products of its processing; production processes; products (picture 1). In model the principle of negative feedback is realized. Entrances are the cash flows expressed in the form of cumulative demand, and an exit – products in the form of the offer.

On the channel of feedback information streams registration statistical data are transferred. Taking into account operation of regulating mechanisms it is possible to allocate two market models: unregulated and adjustable. The model of the unregulated grain market functions, based on operation of mechanisms of the market self-control which has been "built in" the sphere of production of grain. Their impact on a condition of the market is carried out by means of especially market levers operating automatically: change of demand, offer, prices of corn, competition level. The state role in it is reduced only to establishment of the most general norms and rules of the relation between participants of the market. As the managing subject it is present in the market on equal terms with others [1].

The deviation between demand for grain production and the offer can have both positive and negative value. This mismatch is eliminated automatically, without operating influence, due to change in the necessary direction of outputs of commodity grain, its range, the prices, etc.

Picture 1 - The generalized model of the grain market

However, as A. Okhapkin notes, the principles of self-regulation start working only in the presence of the competition, the corresponding antimonopoly policy, the developed infrastructure of the market and normal solvent demand of the population.

It should be noted that the considered model has more theoretic-methodological value as the grain market in a classical look doesn't meet even in the countries developed economy as and there the state to some extent influences its state. Insufficient efficiency of mechanisms of self-control in relation to the grain market is explained by its specifics and, first of all its dependence on soil climatic conditions, fluctuations of productivity of grain crops, products outputs.

Distinction between supply and demand leads to emergence of a mismatch and the beginning of operation of regulating mechanisms, and also mechanisms of market self-control which together eliminate this mismatch. One of the directions of their action is connected during the periods of deterioration of a condition of the market of grain to stimulate demand for grain production, to increase investments, to optimize specific structure of the market etc. These and other actions are urged to increase the volume of made commodity grain and, therefore, growth of its offer. During the periods when revival is observed, there are tendencies of excess of the offer over demand or already there came overproduction, operation of regulating mechanisms has to be directed on reduction of outputs of those types of grain which are offered at present in the market in enough. Supply and demand is characterized by continuous fluctuations of volumes, the realization prices depending on productivity of grain crops, weather conditions and some other external factors. Owing to this fact regulating mechanisms and mechanisms of self-control have to function continuously. It is thus important to determine the optimum size of influences and their ratio.

References:

1 Zhigalov, A.I. Organization of the grain market in Russia / A.I. Zhigalov, E.V. Strelkov. – M.: Hlebproiinform, 2006. – 254 p.