DEVELOPMENT OF MARKETS FOR CEREAL CROP WITHIN THE CONDITIONS OF THE COVID-19 PANDEMIC
Abstract
The article examines the impact of the COVID-19 pandemic on the development of the cereal crop market. In the process of studying the economic aspects of the market development of cereal crops within the conditions of the pandemic, it has been established that restrictive measures have had a negative impact on the development of the cereal market. Large trade system and large purchasing firms had a significant negative impact on the food market and increased agricultural prices during the quarantine period (despite attempts by the State to regulate the prices of certain food groups). As a result of these actions, there has been a reduction in the demand of the population and a gradual change in the structure of the sector, due to the reduction of the subjects of production of agricultural products and, especially, their marketing. This explains why the prices of agricultural products in Ukraine in April-May exceeded by 20-40 percent (for different food groups) in comparison with EU countries». When restrictive quarantine measures were introduced, small and medium-sized enterprises suffered the greatest losses. Agribusiness holdings and other large enterprises and associations felt less of the impact of the quarantine. By analyzing the static reporting of the production of buckwheat and millet, one can conclude that in recent years, there has been an increase in the area planted and in gross yield of millet and a decrease in the area planted and gross yield of buckwheat. After analyzing the prices of the main cereals, we can conclude that in recent years prices have been unstable and are of ups and downs nature. The greatest volatility in terms of cost is represented by buckwheat. If the value of the other grains varies according to the crop and a speculative factor comes to the fore when it comes to the size of the sown area. Rice can be considered the most stable cereal. Price fluctuations are most often triggered by low residues of high quality cereal and force majeure. But these fluctuations are temporary, so after the disappearance of the «external stimulus» the cost returns to the previous positions. The main factors influencing price movements are cereal crop yields, area under cultivation, political situation and force majeure (in early 2020, there was a significant increase in the cost of cereal due to the COVID-19 pandemic).
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