Trade relations of Ukraine on the cereal crops market under conditions of COVID-19 pandemic

Abstract

The COVID-19 virus pandemic, which broke out in early 2020, became a threat to humanity on the planet, damaged the global economy and brought changes in the course of trade relations on global and local levels. With the introduction of mandatory quarantine measures and restrictions of movement, the countries of the world have also applied mechanisms for the temporary regulation of their foreign economic activity in various sectors, and, first of all, in the sector of food and public health. Cereals play an important role in ensuring national food security, being one of the staple food products of the population around the world. For Ukraine cultivation of cereals is also a strategically important component in the economic development, as cereals is a key commodity group in the country's foreign economic activity. The article examined the impact of new factors caused by the pandemic on the current trade balance of Ukraine in the cereal market. An overview of the mechanisms used to regulate foreign economic activity by countries in the world on the cereal market is completed, focusing on the most important crops in the commodity structure of the export-import balance of Ukraine. The structure of Ukraine's trading partners for crops of corn, wheat and barley is analyzed. Based on the FAO methodological guidelines for development of the Food Balance Sheets, self-sufficiency and import dependency ratios of Ukraine were calculated for the selected cereal crops – wheat, corn and rice. The results obtained indicated the existence of a problem in meeting the national demand with rice. Based on the results, recommendations were formulated on further necessary steps required to increase the level of self-sufficiency of Ukraine in rice.