Institutional support for formation of reproductive logistics on the bread and bakery market of Ukraine


Keywords: market of bread and bakery products, market chain, areas of regulated and unregulated trade, inter-link interactions, institutional transformations, institutional mechanism.

Abstract

Purpose. The purpose of the study is to substantiate the impact of institutional transformations on the formation of reproducible logistics of the grain market of Ukraine in terms of spheres of regulated, partially and unregulated trade, their interactions and connections, as well as the development of a mechanism for institutional support of reproducible market logistics, taking into account European experience.

Methodology / approach. During the research, general scientific and special research methods were used, namely: monographic (when studying the theoretical and methodological foundations of the formation of reproducible logistics of the bread and bakery products market); analysis of dynamics series (calculation of indicators of bread and flour production in the section of different spheres of trade); method of comparison (estimation of economic indicators of various spheres and links of the market chain); structural analysis (estimation of the structure of added value of products); index method (estimation of price indices of grain products and wage indices); expert method (for determining the volumes of production in the spheres of partly and unregulated trade); abstract-logical (theoretical generalizations and formulation of conclusions). The information base of the study was the data of the State Statistics Service of Ukraine, analytical publications, and expert assessments of market specialists.

Results. A methodical approach to the diagnosis of product circulation in the spheres of regulated, partially and unregulated goods movement of processing links of the market chain is proposed, based on the synthesis of statistical and expert methods, as well as the methodology for determining the main indicators of food safety. Using this approach, a trend of a significant reduction in the volume of bread production in the sphere of regulated commodity movement, a dynamic growth of bread consumption in the spheres of partially and unregulated commodity movement, inter-link interaction of three spheres of adjacent links (production of flour and bread) of the market chain was established. It was proved that the institutional transformations were unsystematic and isolated, did not ensure the reproductive and logistic development of the processing links of the market chain and the support of the consumer link. A structural model of institutional support for the reproduction logistics of the grain market was developed, focused on the integration of “shadow” segments into the sphere of regulated goods movement and a more equitable redistribution of added value between the links of the market chain.

Originality / scientific novelty. For the first time, a theoretical and methodological approach to the assessment of the transformational influence of formal institutions on the logistics processes of commodity markets is substantiated by the decomposition of link flow processes by spheres of regulated, partially regulated and unregulated commodity traffic and a comprehensive assessment of the directions of interaction and volumes of commodity traffic of these spheres by component links of market chains, which allows determining the influence of modern trends of “shading” on the functioning of logistics chains of commodity markets, problem areas and “traps” in their institutional provision.

Practical value / implications. The results of the study have important practical value for state authorities in regulating the socially significant bread market. Calculations of the production volumes of bread and flour in the spheres of partially and unregulated trade are carried out, which make it possible to identify latent trends in the development of adjacent markets, institutional factors influencing the growth of their “shadow” segments, the volumes of tax and reproductive losses. The proposed model of institutional provision of reproductive logistics can be used by state authorities in the course of reforming the institutional mechanism for regulating the grain market of Ukraine.

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Published
2022-09-20
How to Cite
Zerkina, O., Nikishyna, O., Bondarenko, S., MakovozО., & Durbalova, N. (2022). Institutional support for formation of reproductive logistics on the bread and bakery market of Ukraine. Agricultural and Resource Economics: International Scientific E-Journal, 8(3), 153-177. https://doi.org/10.51599/are.2022.08.03.08
Section
Articles