Trusova M. O., Kirakosyan A. A.

Oles Honchar Dnipropetrovsk National University

THE WORLD MARKET OF WHEAT: MAJOR EXPORTING COUNTRIES AND UKRAINE'S POSITION

One of the major global challenges is the food problem. The world economic system is evident in the lack of food in some regions of the world, especially in developing countries. Grain farming has very important role in the food fund of countries. State of grain market is characterized as global and national security. Wheat is the most important food crop. It is unique in its composition, including the production of crops wheat occupies leading position in world production [1].

Topicality of analysis of the world wheat market due to the fact that this is the main food crop for the majority of the population and wheat is popular in more than 80 countries. Global trend of recent years, with the continued growth and sharp fluctuation in prices of goods, prevent stable export-import activities between countries, jeopardizing the development of their economies.

The aim of the article is to analyze the export of wheat on the world market and make recommendations to improve the position of Ukraine.

The world market of wheat is controlled by five exporting countries (USA, Canada, European Union, Australia, and Russia), which are presented by several major multinational grain corporations. Ukraine takes eighth place among countries which are exporting wheat. Structure of exports of wheat on the world market in 2012 is shown in Fig. 1 [2].

Fig. 1. Structure of exports of wheat on the world market in 2012 [compiled from 2]

Total export grain supply from the main "five" exporters constitute over 84% of total world trade. Analyzing the dynamics of exports of wheat on the world market should be noted that the export is in direct proportion to production. One of the most important factors influencing the production of food grains is climatic conditions. Adverse weather conditions cause major losses of production and exports of wheat in countries causing lower quality, scarcity and higher prices in the world for cereals [3].

Natural and climatic conditions of Ukraine contribute to the cultivation of all cereal crops and gaining in quantities sufficient for domestic needs and export potential formation. Increased level of agricultural technology lately, more balanced approach to growing crops help to reduce the influence of climatic factors on the yield. Ukraine has formed a steady trend towards increasing farms that use intensive methods of management, in which the crop is on the newest technologies that can increase their production in recent years. This suggests that Ukrainian agriculture though slowly but surely moving to a civilized agricultural production, allowing our country to claim the leading position among the major exporting countries [4]. Ukraine is taking 8th place among exporters of wheat on the world market now. The result is not bad, but it should be noted that exports could be more significant and stable, if public policy in matters of export wheat market regulation would be more elaborate [2].

Government policy in foreign trade should provide effective support for export crops:

- to provide political and economic assistance to domestic producers in international markets (exhibitions, talks about cancelling restrictions on supply, preferential loans to overseas importers, etc.);

- in case of a fall in world prices for grains below the level of the internal market must involve export subsidies;

- to serve the growing volume of grain exports to ensure the development of transport and logistics infrastructure: elevators, car park capacity, shipments at the ports of shipment, etc.

It is important to encourage farmers to increase production and reduce costs through:

- the creation of an economically favorable terms for the purchase of modern equipment, the implementation of long-term investment projects;

- public supply surplus products arising during periods of overproduction in the developing countries, on favorable terms and to the poor in the form of the final product;

- increased funding of research programs and the development of applied educational programs for farmers. [5]

The list of references:

1.   Vlasov V. I. Food problem in the context of globalization // V. І. Vlasov. – K., 2004. – P. 7.

2.   Web resource. – Access mode: http://www.indexmundi.com/agriculture/ ?commodity=wheat&graph=exports”

3.   Web resource. – Access mode: http://www.uptrading.ru/main/ internet_trejding_ na_finansovyh_rynkah/informacionnyj_blok_trejderainvestora/tovarnye_rynki/rynok_zernovyh_kultur/”

4.   Nicenco V. S. Word market of wheat // V. S. Nicenco, А. М. Saraeva. – O., 2009. – P. 1–2.

5.   Web resource. – Access mode: http://www.webeconomy.ru/index.php?page= cat&cat=mcat&mcat=192&type=news&p=1&newsid=1539”