INVESTIGATING MARKET PRICES FOR AGRICULTURAL PRODUCTION MEANS AND AGRICULTURAL PRODUCTS

Kateryna Rechka

Abstract


At the present stage of development of Ukrainian agribusinesses, pricing for agricultural products is one of the major tasks to be solved. It is well known that the price significantly impacts business performance since it determines both production cost recovery and business profit. In a market economy, the success of agribusinesses largely depends on how reasonable prices for their products are. However, the current sluggish pricing process at agribusinesses argues the lack of effective methodological and theoretical support for decision-making in the field of pricing policy, which often leads to material miscalculations when pricing, and consequently to significant losses. Thus, it is necessary to study pricing principles, methods, and features in the sector and their impact on the efficiency of agribusinesses. The purpose and objectives of the study: the study aims at determining the factors, methodological approaches and peculiarities of pricing for agricultural products and agricultural production means in the present-day conditions. Background: the peculiarities of pricing in the agrarian sector and the influence of the price mechanism on the Ukrainian agrarian sector are examined by many domestic scientists. Among the works published in recent years, the fundamental studies by M.M. Artus, R.F. Brukhanskyi, V.B. Vavryk, V.V. Hudak, Ye.M. Kyryliuk, M.Z. Matviichuk, M.K. Parkhomets, B.Y. Paskhaver, Ye.A. Firsov, O.M. Shpychak, and others deserve a special consideration. Although, it should be noted that there are significant changes in how certain factors impact pricing for agricultural and agrarian products. For the reasons given, it is necessary to continue investigating the corresponding processes. The research methodology is based on the dialectical method of cognition of the current market situation, in which agribusinesses function, the method of theoretical generalization, analysis and synthesis to determine theoretical framework for studying pricing for agricultural products, determining pricing methods and rationalizing their application, a systematic approach to determining pricing factors and interrelations between them. Having examined, synthesized and critically evaluated studies on pricing in the agricultural sector at the stage of its reform and the market-oriented agricultural model, the following theses have been formulated. A broad methodological and theoretical base for pricing is laid in classical works on economic theory. Although, there have been different trends, concepts, and schools within the issue. They can be classified according to two main and even alternative price theories: 1) labour theory of value and price; and 2) marginal utility theory. Their content is well-known and developed in many studies in economics. For the said reason we only note that currently, domestic scientists suggest various points of view on base and basis of pricing. Many of them argue that in the market system of economic management, regardless of its model and national characteristics, the law of value functions in all spheres and branches of the economy. Results. The author focuses on the peculiarities of pricing for agricultural products, considers the causes and consequences of a significant fluctuation in prices for certain types of products and shows an increasing influence on the pricing of foreign economic transactions and the concentration of agricultural production. It is concluded that agribusinesses strengthen their positions in pricing their products, which is proved by improving selling price variation in the context of individual producers and their groups. The practical implication of the results of the study is as follows applying in practice the suggested recommendations that allow providing a comprehensive definition of the factors affecting the price of agricultural products. Value/ originality. Knowledge of theoretical foundations of pricing is one of the most important success factors in the practical application of experience. Very relevant is the analysis of numerous price strategies of foreign companies related to differences in the positioning of companies and goods, the speed of penetration of the national and the world markets, the formation of brands, relationships with competitors and consumers, systems of stimulation of demand and sale, movement of goods products, the ratio of wholesale and retail components of the sales complex.

Keywords


selling price, agricultural products, agribusiness, price variation, price disparity

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DOI: http://dx.doi.org/10.30525/2256-0742/2018-4-3-244-253

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