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Risk management in export-oriented supply chains of agrifood commodities
Author(s) -
O.O. Shkolnyi,
Ivan Novák
Publication year - 2020
Publication title -
zbìrnik naukovih pracʹ umansʹkogo nacìonalʹnogo unìversitetu sadìvnictva
Language(s) - English
Resource type - Journals
ISSN - 2415-8240
DOI - 10.31395/2415-8240-2020-97-2-219-226
Subject(s) - business , agriculture , supply chain , agribusiness , government (linguistics) , subsidy , bargaining power , production (economics) , domestic market , market power , agricultural economics , industrial organization , commerce , international trade , economics , market economy , marketing , monopoly , ecology , linguistics , philosophy , macroeconomics , microeconomics , biology
The increase in agriexport volume is largely determined by the potential of the domestic market, technological development of agricultural production and processing industries, infrastructure, including logistics support. The development of global agrifood supply chains has been influenced by the interests the agricultural market players, from primary agricultural producers to consumers in marketing niches. The presence of risks drivers at the level of agricultural producers, processing enterprises and other participants in agri-food supply chains necessitates the formation of competitive positioning strategies. Ukraine relies on imports of milk and dairy products, potatoes, vegetables, fruits, berries and grapes, which can be grown by domestic producers. Such commodities are subjects to the agricultural bargaining in many developed economies. Cooperation between government agencies and associations of agricultural producers helps to reduce the level of uncertainty and risk under the destructive effects of global economic forces. The role of the government in the formation of risk management mechanisms in agribusiness is more noticeable than in other areas, which is reflected by the impact on subsidization mechanism, taxation, the formation of marketing channels of produce movement, leveling the influence of market power of retailers. It is not justified to increase the volume of exports of products that could be used as feed by the domestic farmers. Increasing exports of raw materials does not always contribute to a positive image of the country in the world markets. As an example the supply of organic soybeans to the US market was illustrated. The impact of risks on participants in agrifood supply chains necessitates the involvement of innovative technologies, financial instruments, regulatory government programs, as well as best management practices.

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