Main Factors for Market Modeling of Forage Foods in Ukraine Inner and Foreign Experience

A. BELENKIY

Abstract: The forage foods have a unique place at the agricultural market of row materials and are featured by a doubleminded nature of their position. On one side the main element in the forages is the grain and on the other they serve as a row material for the meat, milk products, eggs and other food production. Unlike other bread product markets, the forage food market is relatively flexible and elastic. The forage foods market’s flexibility depends on the capacity and flexibility of the stock breeding sector, which has been differentiated according the product consumption groups and is being changed under the impact of various macro and microeconomic factors and conditions. The author presents a parametric macro model of the grain market, consisting of three components: grain block, resources block of grain derivates (floor, grain products, food formula, etc.), connected each other by input output parameters, reflecting the grain market’s particularities. The systematic analysis of the block component’s functioning in static and dynamic mode indicates the main differences in their parameters. Considering this fact, is imminent to model the grain market system in separated blocks. It is important to be clear as well, that the general macro model of the grain market is suggested as a base for the achievement of a more detailed investigation of the specific grain product markets. In the article we pay a bigger attention to the block of grain derivates resources. We consider a most the extraordinary importance of the forage market’s block formation because the forage foods are an inseparable component of the grain market. They represent 60-75% of the row materials for the stock breeding and poultry farms as well. The studying of the world’s experience proves the fact that without the imminent state support of the agro-industrial sector would be not possible any positive changes of the agricultural product market, even including the forage foods. At the same time it is extraordinarily important to grant preference conditioned credit lines to branches which in a short prospective could become profitable. Such are mainly the swine-breeding and poultry. Besides it is relevant to review the taxation policy in order to establish favorable conditions for the functioning of the domestic producers, especially for these of food products.

Keywords: factors; forage foods; markets modeling; Ukraine

Date published: 2024-09-05