THEORETICAL AND METHODOLOGICAL FOUNDATIONS OF AGRI-TRADING DEVELOPMENT IN GLOBAL MARKETS OF PERFECT COMPETITION

Abstract

For the modern global agricultural market, agricultural trading is an important component, as it allows to ensure a balance between production volumes and demand for products, and provides access to a variety of agricultural products for different markets. The aim of the article is to substantiate the theoretical and methodological foundations for the development of agri-trading in global markets of perfect competition. A monographic study of the essence of the concept of ‘agrotrading’ is carried out. The author's own vision of the essence of agrotrading as a subset of agribusiness, aimed at forming strategies and methods for the effective promotion of agricultural products on the principles of interaction between supply and demand, which additionally take into account information influences and are associated with a high level of risk and uncertainty with the aim of making a profit, is proposed. The article studies agrotrading in the context of its development in the markets of perfect competition. Among the components of the agricultural market, the grain market is a vivid example of a market of perfect competition, since the grain market has a large number of business entities that produce homogeneous products, and these participants have no influence on pricing. The agricultural production sector closely meets the conditions of perfect competition. It has been proven that the global grain market is currently in a somewhat wait-and-see attitude on the part of both exporters and importers, due to the difficult economic situation in certain countries, geopolitical conflicts in the world and huge grain stocks held by all major players. Since the start of the full-scale invasion, Ukrainian grain traders have been facing significant risks and numerous difficulties in their operations. One of the biggest challenges for all participants in the sector is the complication of logistics. Logistical problems are found at every stage of the supply chain. High prices on the domestic market are also making things more difficult. Despite this, the demand for Ukrainian grain on global markets remains high, but its delivery remains a challenge. Therefore, the main task remains to solve the problems with blocking the borders and increasing the capacity of seaports to increase the export opportunities of national producers and traders.