ECONOMIC ASSESSMENT OF THE CEREALS MARKET IN UKRAINE

Abstract

The current stage of development of the national economy of Ukraine is marked by a high level of self-sufficiency in basic foods. In 2020, the level of production for domestic use in Ukraine in the group of cereals was 323.3%, which indicates an excess of production 3.2 times over consumption in the domestic market. The cereal industry is a strategically important component of the grain food market in terms of food security, but needs to address a number of important issues in achieving sustainable development, increasing production and strengthening export potential in the world market. The production of cereals remains a problematic industry in the grain subcomplex, as evidenced by significant fluctuations and high prices for the main types of cereals. Ukraine has a significant potential for agricultural production, which is able to provide the processing industry with high quality raw materials. The development of the cereal market by increasing the production of cereals and improving the functioning of the processing industry has a direct impact on the country's food potential. Cereals are an important component of the grain industry, the production of which saturates the domestic market with the necessary products. Agricultural enterprises that grow oats, buckwheat, millet, rice and provide raw materials to processing enterprises form a supply in the cereal market. Studies of the dynamics and structure of cultivation of these crops in Ukraine show that the gross harvest of buckwheat is growing on an intensive basis - with a reduction in sown areas by 11.3%, the increase in yield is 21.0%; has a tendency to reduce the gross harvest of millet (by 62.3%) under the influence of reduced sown areas and reduced yields; rice production remains stable. Growing and processing of cereals is concentrated in the eastern and central regions of Ukraine, and rice – in the south. The strategic objectives and a necessary condition for the development of the cereal market are the production of high quality grain, its rational use and providing the processing industry with raw materials in the required quantity. Grain production of cereals meets the domestic needs of the country, but the industry has prospects to enter foreign markets.