MANAGEMENT OF CONTRACTUAL ACTIVITIES IN THE GRAIN PROCUREMENT SYSTEM

Abstract

The article addresses the theoretical and practical aspects of managing contractual activities within the grain procurement systems of agricultural enterprises amidst market transformations. The research emphasizes that in the face of economic instability and the legal complexities of the martial law period, the contract evolves from a mere formal document into a strategic management tool for coordinating economic interests and reducing uncertainty across supply chains. The study provides a comprehensive classification of contractual instruments used in the grain sector, including agricultural production contracts (contracting), supply agreements, forward contracts, and public procurement contracts. Each type is analyzed through the lens of its functional purpose: the role of contracting in ensuring long-term partnerships and production planning; the utility of supply agreements for operational flexibility; and the significance of forward instruments for hedging against price volatility in a highly unstable market environment. A significant contribution of the research is the development of a cyclic management algorithm for contractual activities. This model integrates several critical stages: procurement policy determination, counterparty verification, legal expertise with flexible specifications, operational monitoring with quality control, and post-performance evaluation. The author argues that this approach allows for a transition from static paper-based processing to a dynamic risk-oriented management system. The paper identifies and categorizes the primary risks associated with grain procurement—namely price, quality, logistics, and legal risks—and proposes a corresponding toolkit for their mitigation. Special attention is paid to the integration of digital tools, such as electronic document management (EDM) and qualified electronic signatures (QES), as essential components for increasing the transparency and speed of contractual procedures. The findings confirm that a systematic approach to organizing contractual relations directly correlates with the financial stability and competitive advantage of agricultural enterprises. The study concludes that the implementation of the proposed management algorithm facilitates the optimization of resource allocation and ensures the continuity of technological processes in grain processing and export.