Market environment and marketing activities of agricultural enterprises

Economic Annals-ХХI: Volume 150, Issue 3-4(2), Pages: 59-62

Citation information:
Salamin, O. (2015). Market environment and marketing activities of agricultural enterprises. Economic Annals-XXI, 3-4(2), 59-62. https://ea21journal.world/index.php/ea-v150-14/

Oksana Salamin
PhD (Economics),
Lviv National University of Veterinary Medicine and Biotechnology named after S. Z. Gzhytsky
50 Pekarska Str., Lviv, 79010, Ukraine
Oksana_Salamin@i.ua

Market environment and marketing activities of agricultural enterprises

Abstract. Introduction. For the purpose of adaptation to the market environment, marketing activities are being performed at the Ukrainian agricultural enterprises. However, only certain marketing elements which cannot itself secure stable results are being used. Enterprises’ marketing departments perform only the technical functions of sales channels searching.

Purpose. The goal of the article is to describe the basic market tendencies, conditions and possibilities of agricultural enterprises’ marketing activity evaluation.

Results. A peculiar feature of Ukrainian agriculture is an improper level of agricultural market infrastructure formation, high level of products purchasing monopolization, high level of individual farms isolation from the market, though they are one of the main producers of many types of products. Differentiation of these farms and appropriate transformation of some of them in the market-oriented enterprise of a commercial type are not being done. The amount of farms is decreasing. Large holding enterprises which form their own marketing channels are being developed rapidly. Prices in Ukrainian agrarian sector are very changeable and difficult to forecast. Manufacturers of agro-production can orient only on the level of current prices and do not dispose effective forecasting instruments.

The direct state support of problematic spheres is useless. Under the conditions of prices disparity, budget money goes to the spheres contiguous with the agricultural one failing to meet the needs of agro-production sector. Moreover, the marketing activity of agro-enterprises has always been complicated in Ukraine. Numerous problems arise in the processes of reasonable product assortment forming and acceptable marketing channels choosing.

Conclusion. Market price stabilization leads to competitive environment development in agriculture of Ukraine. Therefore, it is reasonable to send limited budget money not to the direct financial support of agricultural manufacturers, but to the infrastructure of agricultural market formation, which means, first of all, support to the wholesales markets creation in the agricultural areas. Efforts of various state departments responsible for agro-sector should be directed towards the market situation prediction and the agricultural manufacturers informing concirning the expected state of the market affairs. On the basis of this information, the enterprises will develop a reasonable marketing policy and develop best channels of distribution.

Keywords: Marketing Activity; Market Environment; Market Infrastructure; Agricultural Enterprises; Regulatory Policy

JEL Classification: D40; M29; M31; Q13

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Received 28.02.2015