Market adaptation of agricultural enterprises

Problems of adaptation agricultural enterprises to the market environment are analyzed. Adaptation in agriculture is complicated by the long production period and volatility of product prices. Due to the improper formation of infrastructure, the agricultural market does not perform the function of price stabilization. Constant re-profiling of the enterprise is required. This does not contribute to stable functioning. There are not price forecasting services in Ukraine. Financial resources and staffing of even relatively large enterprises are insufficient for such forecasting. In such conditions, especially large-sized enterprises are developing as a priority. Their activities are focused on foreign markets, where prices are more stable. This strengthens the export potential of Ukraine's agriculture and exacerbates rural unemployment and social problems in rural areas. In addition, it is difficult for large enterprises to adapt to market environment. Compared to small enterprises, their re-profiling requires longer time and greater financial resources. In highly competitive markets, the differentiation of consumers by requirements for food products is growing. Manufacturers of undifferentiated mass-produced products using intensive technologies are losing their competitive position. The popularity of small batches of products is growing, which is more acceptable for potential consumers of target market segments. The production and bringing to market of such products requires the coordinated activities of all economic entities united by a common chain of movement of goods. To achieve this, state incentives are needed for the creation and development of cluster-type economic systems, which harmonize the requirements for raw materials and products of its processing, delivery times, prices. Production of craft products can be organized in some agricultural enterprises. The higher cost of such products is offset by higher sales prices. The creation of such systems can be initiated by processing enterprises that invest in the production of raw materials. State support for such structures is more effective than direct state financial support for individual industries.