THE MAIN PROBLEMS OF THE EXPORT OF CEREALS UNDER THE CONDITIONS OF THE STATE OF MARTIAL

Keywords: martial law, export, European Union, cereals, agriculture

Abstract

The article is devoted to the study of the problems accompanying the export of cereals under martial law. The preservation of the raw material orientation of the national economy is noted. On the basis of the study of statistical data, it was concluded that in the total volume of exports of Ukrainian goods, cereals exports have one of the leading roles. The specific weight of grain exports was 18.1% in 2021. Only the export of ferrous metals was characterized by larger volumes. The problems of farmers are divided into two groups. One group of problems is related to the conduct of hostilities. Another group of problems is caused by interaction with traders. It is noted that there are direct and indirect losses of farmers from the war. Destruction of agricultural machinery, theft and damage to finished products, destruction of granaries, theft of fuel and fertilizers are classified as direct losses. Indirect losses are associated with a lack of profit due to a drop in demand in the domestic market, a decrease in the volume of harvested crops, an increase in production costs due to an increase in the prices of production factors and an increase in the cost of logistics. The problems of interaction with traders come down to low purchase prices. It was concluded that low purchase prices not only pose a threat to the reproduction of agricultural production, but also allow low prices to be set on the foreign market. Low prices for the export of domestic cereals result in a decrease in revenues to the state budget and a lack of foreign exchange earnings. Attention is focused on the fact that the cheap export of Ukrainian grains in combination with the unscrupulous behavior of domestic subjects of foreign economic activity cause dissatisfaction among farmers in the countries where agricultural products are exported or through whose territory they are transported. The consequence is restrictive measures, in particular, a complete ban on the import of grain into the territory of these countries. In this regard, it is proposed to intensify the activities of the state, which is aimed at stabilizing pricing in agriculture, compliance by subjects of foreign economic activity with the principles of fair competition, and increasing the awareness of foreign counterparties regarding the safety of Ukrainian exports.

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Article views: 138
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Published
2023-06-27
How to Cite
Naumov, M., & Rybak, H. (2023). THE MAIN PROBLEMS OF THE EXPORT OF CEREALS UNDER THE CONDITIONS OF THE STATE OF MARTIAL. Economy and Society, (52). https://doi.org/10.32782/2524-0072/2023-52-80
Section
ECONOMICS

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