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The state and ways of vegetables marketing improvement in agricultural enterprises

Author(s) Kharenko A.A., Candidate of Economics, , Uman National University of Horticulture, Ukraine
Tsymbaliuk Y.A., Candidate of Economics Sciences, , Uman National University of Horticulture, Ukraine
Category Economics
year 2017 issue Issue № 91. Part 2
pages 152-162 index UDK 631.1.027:631.115.13:635.1/.8
Abstract The article analyzes some components of the marketing activities of the agricultural enterprises of the Cherkassy region regarding vegetables, as well as factors affecting it. The results of regional individual producers’ ativity are researched. The directions for their effectiveness increasing are suggested. The majority of enterprises engaged in the vegetable production (open ground) is concentrated in the areas nearby to large cities, which is due to their approximations to consumers. Also on the region’s territory there is a specialized enterprise engaged in vegetable growing of covered ground (PE "Uman greenhouse complex" – tomatoes and cucumbers production). The volume of vegetable products, which was realized by the agricultural enterprises of the region significantly increased for the period under research. During this period, the total cost of vegetables, both open and covered ground, increased almost 2 times, however as to potatoes, significant change did not occur. The level of sales expenses can reach to 30% of the total cost, depending on the type of product. The development of the industry was positively affected by the growth in sales prices, which ensured a positive profitability rate for all product groups. The main sales channels are commercial organizations (especially for covered ground products, where the share of this channel is close to 98%) and processing enterprises. Only 2% of vegetables and 10% of potatoes are sold directly to the end consumers. The price significantly depends on the distribution channel used by the producer. The foundation of marketing units in the business’ structure can effectively influence on their marketing activities improvement. The most suitable decision is to build them on a functional basis with separation of organization and direct produce distribution function. A perspective direction of vegetable products promotion is the sales through the marketing cooperative, which would allow to coordinate the marketing policies of its members, form significant lots of products, autonomously enter wholesale markets, negotiate with processing enterprises and other provisioners about conditions for the sale of products. In the retail trade, members of such an association could effectively cooperate by opening appropriate trading institutions (for example, grocery stores), complementing each other's assortment and expanding it by purchasing other products from outside. It is advisable for commodity producers to improve the product quality management system both on the basis of ISO 9001 and the international system of hazard analysis and critical control points in production processes (HACCP), as well as to take the specified in marketing standards of the EU indicators as the preferred.
Key words agricultural enterprises, vegetables of open and covered ground, potatoes, price, distribution channels, profit.
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