Organization and effectiveness of marketing management of agricultural commodity producers under non-cooperative marketing: the experience of Ukraine
-
DOIhttp://dx.doi.org/10.21511/ppm.16(4).2018.02
-
Article InfoVolume 16 2018, Issue #4, pp. 13-29
- 1624 Views
-
238 Downloads
This work is licensed under a
Creative Commons Attribution-NonCommercial 4.0 International License
Under reducing domestic demand for food in Ukraine and increasing dependence on the world food market, a significant part of quasi-price rent from its sale is assigned by intermediary exporters, thus reducing the welfare of domestic commodity producers and consumers. To mitigate this negative effect, it is necessary to have a carefully designed marketing business strategy. The purpose of this article is to summarize the practice of using the main elements of the marketing complex, analyze the effective management of marketing activities of agricultural producers in Ukraine and determine the main directions for increasing its effectiveness by establishing marketing relations for the product supply. Given the large area of Ukraine and the complexity to obtain monographic data that are not subject to monitoring by the State Statistics Service, the study was conducted using agricultural enterprises of the typical agricultural district, namely Khrystynivka district of Cherkasy region (Ukraine) as an example. It is revealed that the use of marketing tools by agricultural enterprises is limited due to the specifics of commodity products and the managers’ focus on short-term business goals. The analysis of forming and realizing the marketing complex of the district enterprises using the monographic method has shown that enterprises systematically use only elements such as commodity policy and distribution policy, while relying exclusively on retrospective marketing data. Significant increase in the return on marketing costs in the short term can only be achieved if formal or informal associations of commodity producers are formed on a functional-territorial basis. This will create a scale effect and allow each member to reduce transaction costs and get an additional premium. It is proved that while conducting administrative-territorial reform in Ukraine, it is most appropriate to form such associations within the boundaries of the united territorial communities.
- Keywords
-
JEL Classification (Paper profile tab)L10, M31, Q13
-
References26
-
Tables11
-
Figures2
-
- Figure 1. Difference in the sale prices for core products of agricultural enterprises of Khrystynivka district (2016 data)
- Figure 2. Correlation-regression dependence between the volume of marketing expenses and the profit margin of agricultural enterprises in Khrystynivka district, Cherkasy region (according to 2007–2016 data)
-
- Table 1. Agricultural products nomenclature of the enterprises of Khrystynivka district, Cherkasy region (main activity)
- Table 2. Results of the ABC analysis of the commodity assortment of agricultural enterprises of Khrystynivka district, Cherkasy region
- Table 3. Selling price dynamics for products of agricultural enterprises of Khrystynivka district, Cherkasy region, UAH per 1 centner
- Table 4. The structure of channels for selling grain crops by agricultural enterprises of Khrystynivka district, Cherkasy region
- Table 5. The structure of oilseed crops sales channels by agricultural enterprises of Khrystynivka district, Cherkasy region
- Table 6. The structure of livestock products sales channels by agricultural enterprises of Khrystynivka district, Cherkasy region
- Table 7. Regression analysis results of the relationship between the marketing costs and the profit margin of agricultural enterprises in Khrystynivka district, Cherkasy region (according to 2007–2016 data)
- Table 8. Share of marketing expenditures in full cost of sold agricultural products of Khrystynivka district, Cherkasy region
- Table 9. Dynamics and distribution of profit received by agricultural enterprises of Khrystynivka district, Cherkasy region (by types of products)
- Table 10. Marketing performance of agricultural enterprises in Khrystynivka district, Cherkasy region
- Table 11. Marketing performance of agricultural enterprises of Khrystynivka district, Cherkasy region in terms of products
-
- Agbo, M., Rousselière, D., & Salanié, J. (2015). Agricultural marketing cooperatives with direct selling: A cooperative– non-cooperative game. Journal of Economic Behavior & Organization, 109, 56-71.
- Annie Royer (2008). The Emergence of Agricultural Marketing Boards Revisited: A Case Study in Canada. Canadian Journal of Agricultural Economics, 56, 509-522.
- Barrett, C. B., & Mutambatsere, E. (2008). Marketing Boards. The new Palgrave dictionary of economics. In Lawrence E. Blume & Steven N. Durlauf (Eds.) Marketing of Agricultural Products (2nd ed.). London: Palgrave Macmillan, Forthcoming.
- Cadilhon, Jо, & Dedieu, Ma4. Cadilhon, Jо, & Dedieu, Marie- Sophie (2011, June). Commodity associations: a widespread tool for marketing chain management. Division of Statistics and Strategic Foresight – Strategic Foresight and Evaluation Analysis, 31.ie- Sophie (2011, June). Commodity associations: a widespread tool for marketing chain management. Division of Statistics and Strategic Foresight – Strategic Foresight and Evaluation Analysis, 31.
- Carillo, F., Caracciolo, F., & Cembalo, L. (2017). Do durum wheat producers benefit of vertical coordination? Agricultural and Food Economics.
- Chand, R. (2012). Development Policies and Agricultural Markets. Economic & Political Weekly, 47(52), 53-63.
- Chemerys, V. A. (2015). Інноваційний розвиток інфраструктури аграрного ринку: регіональний контекст [Innovatsiinyi rozvytok infrastruktury ahrarnoho rynku: rehionalnyi kontekst] (352 p.). Lviv: Avers.
- Ferreira, K. J., Goh, J., & Valavi, E. (2017, October). Intermediation in the Supply of Agricultural Products in Developing Economies (Harvard Business School Working Paper, No. 18-033).
- Gallego-Alvarez, I., Prado- Lorenzo, J. M., Rodríguez- Domínguez, L., & García- Sánchez, I. M. (2010). Are social and environmental practices a marketing tool?: Empirical evidence for the biggest European companies. Management Decision, 48(10), 1440-1455.
- Humeniuk, H. (2014). Проблеми і перспективи стандартизації сільськогосподарської продукції [Problemy i perspektyvy standartyzatsii silskohospodarskoi produktsii]. Standartyzatsiia: metodolohiia ta praktyka, 6, 18-21.
- Kiruthiga, K., Karthi, R., & Daisy, B. A. (2015, April). Agricultural Marketing – An Overview. International Journal of Scientific and Research Publications, 5(4), 2015.
- Kohls, R. L., & Uhl, J. N. (2002). Marketing of agricultural products (9th ed.) (544 p.). Prentice Hall.
- Larina, Ya. S. (2008). Формування та механізми реалізації маркетингових стратегій в агропродовольчому підкомплексі АПК [Formuvannia ta mekhanizmy realizatsii marketynhovykh stratehii v ahroprodovolchomu pidkompleksi] (336 p.). Kyiv: Presa Ukrainy.
- Lohosha, R. V. (2017). Стан та перспективи розвитку сільськогосподарських обслуговуючих кооперативів в галузі овочівництва [Stan ta perspektyvy rozvytku silskohospodarskykh obsluhovuiuchykh kooperatyviv v haluzi ovochivnytstva]. Ekonomika. Finansy. Menedzhment: aktualni pytannia nauky i praktyky, 9, 74-86.
- Meulenberg, M. T. G. (1986). The evolution of agricultural marketing theory: towards better coordination with general marketing theory. Netherlands Journal of Agricultural Science, 34, 301-315.
- Opara, L. U. (2003). Traceability in agriculture and food supply chain: A review of basic concepts, technological implications, and future prospects. Food, Agriculture & Environment, 1(1), 101-106.
- Sarker, D., & Ghosh, B. K. (2010). Milk Marketing under Cooperative and Non-Cooperative Marketing Channels: Evidence from West Bengal. Economic Annals, 55(187), 87-108.
- Soloviov, I. O. (2008). Агромаркетинг: системна методологія, реалізація концепції [Ahromarketynh: systemna metodolohiia, realizatsia kontseptsii] (344 p.). Kherson: Oldi-Plus.
- State Statistics Service of Ukraine (2018). Очікування сільськогосподарських підприємств щодо перспектив розвитку їх ділової активності за видами економічної діяльності (2015–2018) [Ochikuvannia silskohospodarskykh pidpryiemstv shchodo perspektyv rozvytku yikh dilovoi aktyvnosti za vydamy ekonomichnoi diialnosti (2015–2018)].
- Statistical Book (2016). Сільське господарство Черкащини. Головне управління статистики у Черкаській області 2017 [Silske hospodarstvo Cherkashchyny. Holovne upravlinnia statystyky u Cherkaskii oblasti 2017] (234 p.).
- Statistical Yearbook of Ukraine (n.d.). Основні економічні показники роботи сільськогосподарських підприємств Черкащини в 2012 (2013, 2014, 2015, 2016) році: Статистичний щорічник 2013 (2014, 2015, 2016, 2017) [Osnovni ekonomichni pokaznyky roboty silskohospodarskykh pidpryiemstv Cherkashchyny v 2012 (2013, 2014, 2015, 2016) rotsi: Statystychnyi shchorichnyk 2013 (2014, 2015, 2016, 2017)] (101 p.). Cherkasy.
- Statistical Yearbook of Ukraine (n.d.). Реалізація продукції сільськогосподарських підприємств Черкащини в 2012 (2013, 2014, 2015, 2016) році: Статистичний щорічник 2013 (2014, 2015, 2016, 2017) [Realizat¬siia produktsii silskohospodarskykh pidpryiemstv Cerkashchyny v 2012 (2013, 2014, 2015, 2016) rotsi:: Statystychnyi shchorichnyk 2013 (2014, 2015, 2016, 2017)] (124 p.). Cherkasy.
- Stepanova, A. А., Horbas I. М., & Davydova O. G. (2017). Practical aspects of strategic marketing management of agricultural enterprises (on the example of “MRIYA AGRO HOLDING”). Financial and Credit Activity: Problems of Theory and Practice, 2(23), 221-228.
- Sydorenko, S. (2017, December 27). Реформа, якої не уникнути Україні: 10 прикладів об’єднання громад у країнах Європи [Reforma, yakoi ne unyknuty: 10 prykladiv obiednannia hromad u krainakh Yevropy]. Yevropeiska Pravda.
- Sydorenko, S. (2018, February 5). Доведеться створити нову карту України: посланець Меркель та Зубко розкрили плани адмінреформи [Dovedetsia stvoryty novu kartu Ukrainy: poslanets Merkel ta Zubko rozkryly plany adminreformy]. Yevropeiska Pravda.
- Ulianchenko, Yu. O., & Kosenko, A. V. (2014). Державна політика щодо розвитку інфраструктури аграрного ринку [Derzhavna polityka shchodo rozvytku infrastructury ahrarnoho rynku]. Aktualni Problemy Derzhavnoho Upravlinnia, 2, 27-34.