Uman NUH | today: 01/18/2023

The peculiarities of agricultural sales: regional aspect

Author(s) Kharenko A.A., Candidate of Economics, , Uman National University of Horticulture, Ukraine
Bobko V. V., , , Uman National University of Horticulture
Category Economics
year 2016 issue 88
pages 319-334 index UDK 657.471.66:338.43
Abstract The article reviews the dynamics of the sales efficiency of agricultural enterprises of Cherkassy region, depending on their location in the region. The factors that influence the changes of this dynamics are analyzed. Agricultural conditions under the influence of natural environment are not the same throughout the region. In addition to the above, the major population centers, such as Cherkassy, Smila, Uman and Kaniv, are located in the central and western parts of the region. Taking this into account, the average regional indices of distribution with the results of the holdings of typical regions of each agropedological zone are analyzed and compared (accordingly Zolotonosha, Uman and Smila districts). While analyzing sales efficiency, depending on the zone regionalization, it should be noted that the farms, located in the western and central parts of the area, experience more extensive expenses for marketing operations (for both crop production and animal production). The slight marketability distinctions of grain and soybeans between regions are observed. The lion’s share of livestock sector of the region is concentrated in Zolotonosha and Chornobay regions, for this reason, the considerable part of grain and soybeans is used for feed. While defining the level of profitability, it should be noted that, concerning grain, oilseeds, sugar beet and milk, the investigated farms demonstrate the increasing trends and positive results. The efficient economic activity of meat-animal production (for both grass-flesh and pork) is observed only within Zolotonosha region, owing to plant concentration and proximity to processing companies. In the course of our research, it was found out that there are also regional differences in pork and milk distribution channels. While speaking about the agricultural enterprises within Uman and Smila regions, it should be mentioned that the considerable part of the above mentioned production is sold to profit organizations and at the market, owing to proximity to big cities and, therefore, to percentage of end-consumers. The monopoly position of processing companies and profit organizations, credit policy of financial institutions, as well as the deficit of grain and oil crop storage negatively affect the marketing efficiency of agricultural producers. The research reveals that the prospective line of distribution for commodity producers of Cherkassy region is the distribution through cooperative stores, that will make it possible to coordinate the marketing policy of the members of cooperative society, to enter the wholesale market on own account, to hold negotiates with processing companies and other buyers for sales terms.
Key words agricultural enterprises, production, goods, distribution, efficiency, sales channels.
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