Uman NUH | today: 12/22/2024

Risk management in export-oriented supply chains of agrifood commodities

Author(s) Школьний О. О., , ,
Novak I., Candidate of Economics Sciences, , Uman National University of Horticulture, Ukraine
Category Economics
year 2020 issue Issue number 97. Part 2
pages 219-226 index UDK 330.131.7:338.433:339.564
DOI 10.31395/2415-8240-2020-97-2-219-226 (Link)
Abstract The increase in agriexport volume is largely determined by the potential of the domestic market, technological development of agricultural production and processing industries, infrastructure, including logistics support. The development of global agrifood supply chains has been influenced by the interests the agricultural market players, from primary agricultural producers to consumers in marketing niches. The presence of risks drivers at the level of agricultural producers, processing enterprises and other participants in agri-food supply chains necessitates the formation of competitive positioning strategies. Ukraine relies on imports of milk and dairy products, potatoes, vegetables, fruits, berries and grapes, which can be grown by domestic producers. Such commodities are subjects to the agricultural bargaining in many developed economies. Cooperation between government agencies and associations of agricultural producers helps to reduce the level of uncertainty and risk under the destructive effects of global economic forces. The role of the government in the formation of risk management mechanisms in agribusiness is more noticeable than in other areas, which is reflected by the impact on subsidization mechanism, taxation, the formation of marketing channels of produce movement, leveling the influence of market power of retailers. It is not justified to increase the volume of exports of products that could be used as feed by the domestic farmers. Increasing exports of raw materials does not always contribute to a positive image of the country in the world markets. As an example the supply of organic soybeans to the US market was illustrated. The impact of risks on participants in agrifood supply chains necessitates the involvement of innovative technologies, financial instruments, regulatory government programs, as well as best management practices.
Key words risk management, agrifood commodities, export-oriented activities, supply chain management
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