Economic aspects of production and consumption of buckwheat

Abstract

The economic aspects of production and consumption of buckwheat in Ukraine are considered.

The importance of growing buckwheat and the need to develop this industry, both for achieving the main goal of agricultural producers, as well as meeting the needs of the population and the successful resolution of the food problem in all regions of Ukraine and the improvement of export opportunities are noted.

The results of research on the development of this segment of grain crops market of domestic and foreign scientists, economists-agrarians, are considered. The necessity of further scientific researches on production and provision of buckwheat products to the population was revealed.

Materials for research were scientific works and periodicals of foreign and domestic economists, as well as official statistics of the Main Department of Statistics in the Kyiv region, materials for reporting and accounting of agricultural enterprises in the region. As a result of the application of statistical, monographic methods of research, as well as the method of generalization and comparison, the analysis and research of the domestic market of buckwheat has been carried out, which reveals the main factors influencing the production, sale and consumption of the specified products.

The dynamics of development of buckwheat production is investigated and its economic efficiency is analyzed in the period of 2013-2017 at agricultural enterprises of Baryshevsky district of Kyiv region. It is noted that the agricultural enterprises of the Baryshevsky district of the Kyiv region have rather favorable geographical and economic conditions for growing buckwheat. The growth of the main economic indicators of its production, besides the level of marketability, as well as the positive and negative aspects of this process, are noted. The sharp increase in demand has led to an increase in retail prices for buckwheat, although the real cost of its production is much lower. There are changes in the structure of production costs. The share of direct material expenses increased from 41.57% to 47.92%, the share of total production and other direct expenses decreased by 6.81%. This indicates a significant rise in prices for materials and services used and the greatest cost of sowing.

There is a tendency to increase co-production of 1 mt of buckwheat by 22-27%, as at the level of the enterprise, as well as in the whole country. The increase is negative, since this increases the price for consumers. This trend can be explained by the non-profitability of culture among producers, with a small amount of sown areas, interprises don’t want to grow buckwheat because of low profitability and the risk of losing damage out of harvesting, as well as increasing prices and inflation in country.

The reduction of the raw material base led to a decrease in the supply of finished products on the domestic market, and as a result - a sharp increase in prices for buckwheat groats in the trading network. On the basis of the analysis, the factors influencing the production, sales and consumption of these products were identified.

An analysis of the size of the subsistence minimum, the actual minimum age-wage and salary (per person) showed that during 2013-2018, the actual minimum age pension did not reach the subsistence minimum and amounted to 80.4% on average. This indicates a deterioration in the purchasing power of Ukrainians. Since buckwheat is not a food product of the utmost importance and is not in the cheap price segment, it is precisely from such products that the decline in profits is primarily denied, replacing them with substitutes.

The strategic directions of economic development of the crop sectors in agricultural enterprises of the region and Ukraine in general are noted.

It is proved that the production of buckwheat is economically profitable and expedient in the present conditions. Low-cost cultivation technology, fast liquidity in the market, high purchasing prices make it a highly profitable crop even for enterprises with little energy and resource support, which is proved by the example of agricultural enterprises under study.

The optimal amounts of buckwheat are determined, which will enable to meet the needs of the population in accordance with the rules of rational nutrition. These potential opportunities in the improving the quality of food raw materials for obtaining additional food reserves are indicated. In order to increase the production of buckwheat, it is necessary to change the state's attitude towards the protection of its own market of buckwheat and to increase the professionalism and responsibility of managers and specialists in the production of buckwheat.

New opportunities to satisfy the needs of the population in the products of this industry appear when introducing new high yields with stable yields of varieties that realize the genetic potential of intensive technologies, as well as scientifically substantiated rational placement of buckwheat crops in the regions of Ukraine.

A special role belongs to price regulation, which should facilitate the production of the required quantity of products in accordance with rational consumption norms and protect domestic producers from the dominance of imported products. Special attention should be paid to the state regulation of the buckwheat market, aimed at encouraging farmers to produce it and enter the market. It is important to develop the production links of agricultural enterprises with processing enterprises, trade enterprises that unite wholesale and retail trade, banks, domestic and foreign investors, would ensure their balanced development. Creating an efficient processing sector is a prerequisite for effective competitive agriculture.