Price position of Ukrainian wheat on the world market

Abstract

The arƟcle analyzes price posiƟons of Ukrainian wheat on the world market, detects main compeƟtors and its target market. Also, tasks for cereal market operators in connecƟon with an increase of Ukrainian share in world trade due to surge in Ukrainian wheat sales more than 3 Ɵmes for the last 7 years is considered in the arƟcle. The Ukrainian share in wheat sales of the Black Sea basin countries was 23,1%, Russian share – 48,4%, Romania – 10,1% in 2019/2020 markeƟng year. The main compeƟtor of Ukraine among the Black Sea basin countries is Russia that has increased its wheat exports more than 3 Ɵmes and has enough poliƟcal and economic moƟvaƟons to use predatory pricing strategies. Other worthy compeƟtors are France and Romania. They have strong market posiƟons because of the European Union protecƟonist policy. The rise in stock for crops in 2020 caused price escalaƟon on the world market. We should use internal and external methods such as macroeconomic stabilizaƟon, in parƟcular exchange rate, opƟmizing technology for producƟon and storing to prevent losses, adherence to the principles of business ethics in the execuƟon of contracts, improvement of the remaining infrastructure, logisƟcs and informaƟon-based promoƟon to provide raising the image of Ukrainian products on the world market. Today the agricultural businesses should make informed decisions regarding further export of Ukrainian wheat, realisƟcally assess the capaciƟes of its sales considering world market demands and own economic acƟvity results.