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Author(s): O. Materynska

Journal: Economics of Development
ISSN 1683-1942

Volume: 67;
Issue: 3;
Start page: 103;
Date: 2013;
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Keywords: food security | grain crop production | potential | grain market | agroindustrial complex | grain | the grain growing

Ukraine has very favourable conditions for growing grain crops: fertile soil, temperately warm climate, used technology, material and technical base, though underdeveloped, and finally, experience, tradition, trained workforce. Therefore, it is quite natural that grain production is the prior agricultural sector of Ukraine.The issue of food safety of the country is the most important today. Though the total grain supply fully provides internal demand of Ukraine today, but nevertheless the development of grain export remains actual.The aim of the article is to determine the current level of development of the grain market in Ukraine and its importance for agriculture of our country.In 2012 the production of grain and leguminous crops was 46.2 million tons, which is 18.6 % less than in 2011. This is caused by the reduction in harvest area (by 529 hectares, or 3.5 %), and decreased productivity cereals (5.8 kg of 1 ha, or 15.7 %). The grain yield of cereals in 2012 was received mainly from the production of grain corn, whose share in the total gross yield reached 45 % (the average for the decade is 21 %).Production of food grain crops in 2012 was reduced by 28.0 % and made 17.0 million tons (37 % of total amount), the coarse grain – by 11,8 %.For the next years the agribusiness sector of Ukraine has the task to ensure steady growth of grain, the required value of its composition by types that will satisfy all the needs of the state and high quality of the whole range of grain.As for the consumption of bakery, its actual value exceeds the rational norm by 20 % and its amount is 125 kg per capita per year.In the world market of grain the main producers are China (18.6 %), the USA (15.9 %), Russia (3.4 %), France (2.8 %), Canada (2.3 %), Germany (2,0 %). In this ranking Ukraine is the seventh largest producer of 1.6 % of the world production of cereals and legumes.The main problems of grain market development are ensuring the stable prices under the conditions of grain overproduction, real support of producers, use of export grain potential with the maximum benefit for the state, the development and implementation of the effective mechanism of regulating the internal grain market.The investment into a grain subcomplex constrains the land market adequacy, the mechanisms that would facilitate the expansion of profitable and reduction of unprofitable enterprises.
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