Student – Teslyar V.O.
Mykolayiv National Agrarian University
Problems and prospects of grain and grain market in terms of Ukraine's accession to the European Union

Grain production in Ukraine is one of the leading places in the economy, plays an important role in the socio-economic and political development of the country and the food security of society. Ukraine is among the ten largest producers and exporters of grain. That is why the study of the dynamics and to identify the problems and prospects of the grain market in modern terms - in the light of Ukraine's accession to the EU, is of particular relevance.

Research on the development of the grain market dedicated work of economists: N. Boatmen, P. Haidutsky, Y. Mikhailov, G. Ortina et al. Paying tribute to the scientific achievements of the aforementioned scientists want to draw attention to the need to address the issue of research in light of Ukraine's accession to the European Union.

The aim of our study is the analysis of the grain industry in Ukraine a globalized economy, the definition of its role on the world market and possible directions of development.

Ukraine is a leading grain producers in the world, it promotes the growth of export potential and foreign exchange earnings in the country. According to the State Statistics Service of Ukraine in 2013 received the highest level of gross harvest of grain - 63.1 million tons, this level has been achieved through increased yield, because the acreages are more stable. Special influence on the yield of grain and gross collection carry natural and climatic factors (Fig. 1).

Grain market is a system integrated market of agriculture of Ukraine, which has significant production and export potential. Export of grain occupies an important place in the export of agricultural products.

Figure 1 – Dynamics of yield, area and gross harvest of grain crops in 2000-2013 years
Source: constructed by the author according to the State Statistics Service of Ukraine

Production and export of grain during the 2004-2013 MY reflected in Fig. 2.

Figure 2 – Dynamics of production and export of grain during the 2004-2013 MY
Source: constructed by the author according to the State Statistics Service of Ukraine

Value for in production and export of grain in time is not constant, it is caused by various factors, first of all - price fluctuations on domestic and foreign markets, as well as the size of quotas that were established by the state.

Analysis of the current state of the grain market in Ukraine shows that the market is volatile and has the following problems: reducing government grain purchases and system implementation reorientation of public alternative distribution channels; significant changes in market prices for grain; entry of a large number of mediators that dictate farmers unfavorable price conditions; discrepancy grain quality standards and EU requirements.

An important step in the development of the grain market is the EU providing temporary autonomous preferences in trade regime with Ukraine. The Council approved the April 14, 2014 decision of the European Commission to unilaterally reduce tariffs on Ukrainian goods up to 11.01.2014 year. Part of Agriculture concerning the abolition of customs duties on 83% of agricultural production, which comes from Ukraine to the EU, 16% heading in agriculture received tariff quotas [2].

Export potential of the grain market in Ukraine 2013/14 MR is 31.7 million tons, this is a record. As for prices, the domestic prices of grain according to the Ministry of Agrarian Policy and Food of Ukraine in the range: wheat 3rd grade $ 152 to $ 230 per ton at the rate of the National Bank of Ukraine, feed wheat Grade 6 $ 141- $ 225 per ton [3] .

This steady trend indicates a change in the priority sectors of the economy towards the agricultural sector, as evidenced by the increased attention to this business both investors and the state.

We distinguish between the following ways of development grain market: a more effective system of tax and customs and tariff regulation; establishing a system of monitoring and forecasting the market; stimulate market demand and supply in the grain; protect the interests of domestic producers in the exercise of economic activity; improve the quality of grain for enhance competitiveness in the global market; formation of an appropriate legislative and regulatory framework to align the grain market to European standards.

References:

1. State Statistics Service of Ukraine / [electronic resource]: Access: http://www.ukrstat.gov.ua/ — Title screen.

2. Actual problems of grain market in Ukraine and path s solutions / [electronic resource]: Access: http://ru.ictsd.org/bridges-news/ — Title screen.

3. Сollected almost 40 million tons of cereals, legumes and industrial crops / [electronic resource]: Access: http://www.zerno.org.ua/11 — Title screen.