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<p>The article examines the issues of intersectoral price relations in agri-food chains in Ukraine. It is proved that the imbalance of relations between different spheres of the agro-industrial complex due to price disparity causes the withdrawal of financial resources from one industry to another, without creating conditions for expanded reproduction. The factors influencing prices in agri-food chains are systematized: inflation, disparity, currency fluctuations, sales channels, etc. It is confirmed that the subjects of entrepreneurial activity of the agricultural sector of economy operated in conditions of price disparity during 2000–2019, which led to a relatively low value of their profitability. At the level of a participant in the chain of food industry entities, the price index for food industry products has been exceeded over the agricultural level, but there is a very low level of profitability – 1.4% in 2019. Analytically proved existence of a disparity between retail prices for food and agricultural products provides a profitability of wholesale and retail trade at 15.8–23.3%. Violation of the equivalence of exchange in supply chains at the level of wholesale and retail trade leads to the entry of agricultural enterprises into vertically integrated associations of the holding type. It is substantiated that ensuring the equivalence of exchange in agri-food chains requires the introduction of a set of value-added tools in the agricultural sector of antitrust regulation, market infrastructure development, rural cooperation and integration, and support for the development of small producers.</p>
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The article examines the issues of intersectoral price relations in agri-food chains in Ukraine. It is proved that the imbalance of relations between different spheres of the agro-industrial complex due to price disparity causes the withdrawal of financial resources from one industry to another, without creating conditions for expanded reproduction. The factors influencing prices in agri-food chains are systematized: inflation, disparity, currency fluctuations, sales channels, etc. It is confirmed that the subjects of entrepreneurial activity of the agricultural sector of economy operated in conditions of price disparity during 2000–2019, which led to a relatively low value of their profitability. At the level of a participant in the chain of food industry entities, the price index for food industry products has been exceeded over the agricultural level, but there is a very low level of profitability – 1.4% in 2019. Analytically proved existence of a disparity between retail prices for food and agricultural products provides a profitability of wholesale and retail trade at 15.8–23.3%. Violation of the equivalence of exchange in supply chains at the level of wholesale and retail trade leads to the entry of agricultural enterprises into vertically integrated associations of the holding type. It is substantiated that ensuring the equivalence of exchange in agri-food chains requires the introduction of a set of value-added tools in the agricultural sector of antitrust regulation, market infrastructure development, rural cooperation and integration, and support for the development of small producers.

Directions for Ensuring the Equivalence of Exchange in Agri-Food Chains in Ukraine

Bila Tserkva National Agrarian University

Visegrad Journal on Bioeconomy and Sustainable Development

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

The article examines the issues of intersectoral price relations in agri-food chains in Ukraine. It is proved that the imbalance of relations between different...

Directions for Ensuring the Equivalence of Exchange in Agri-Food Chains in Ukraine

Published Online: Jul 15, 2021

Page range: 29 - 34

DOI: https://doi.org/10.2478/vjbsd-2021-0007

Keywords
agri-food chain, added value, price parity, gross value added

© 2021 Olha.O. Varchenko, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Directions for Ensuring the Equivalence of Exchange in Agri-Food Chains in Ukraine

Published Online: Jul 15, 2021

Page range: 29 - 34

DOI: https://doi.org/10.2478/vjbsd-2021-0007

Keywordsagri-food chain, added value, price parity, gross value added

© 2021 Olha.O. Varchenko, published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Keywords
agri-food chain, added value, price parity, gross value added