Organization and effectiveness of marketing management of agricultural commodity producers under non-cooperative marketing: the experience of Ukraine

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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.

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    • 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