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Methodological approaches to assessing agri-food market conditions

Market  conjuncture  has  four  fundamental  characteristics:  dynamism,  proportionality,  variability,  and  cyclicality. 
Agricultural  commodity  and  food  market  is not  an  exception  to  the  case.  In  order  to  reflect  the  characteristics,  a  situational 
analysis of the market should be directed to find solutions for the four conceptual problems: analysis of the dynamic patterns and 
tendencies;  analysis  of  the  development  proportionality;  analysis  of  the  market  stability;  analysis  of  the  market  development 
recurrence, definition of the cycles.  
Price  monitoring  is  an  operative  tracking  of  internal  prices  (the  prices  at  which  agricultural  producers  sell  their  goods, 
procurement prices, prices for retailing and wholesaling) at different levels – district, regional and national. 
Dynamism  is  a  key  feature  of  agricultural  commodity  and  food  market,  which  indicates  its  capacity  regarding  growth, 
reduction or stability. 
Spontaneity of agricultural commodity and food market is still its main property. Studying casual and constant fluctuations, 
their  frequency  and  power  gives  an  idea  of  the  market  development  stability,  whereas  casual  fluctuations  of  agricultural 
commodity and food market are the most problematic because they are impossible to be predicted. 
Therefore,  market  conjuncture  is  a  complex  and  changing  phenomenon.  It  depends  on  some  elements  and  actions,  the 
development  of  which  complies  with  laws,  being  characterized  by  certain  qualitative  and  quantitative  criteria.  The 
abovementioned issues are the preconditions for the need to use different approaches while analyzing market environment. With 
a purpose of their certain systematization, they should be divided into two groups: general methods and special ones.  
While  doing  agricultural  commodity  and  food  market  research,  various  types  of  comparative  analysis  can  be  applied: 
horizontal, vertical, trending, one-dimensional and multidimensional.   
Horizontal comparative analysis is used for agricultural commodity and food market research to determine the absolute and 
relative deviations of the actual level of the evaluated parameters from the basic one. 
Vertical benchmarking helps to study the structure of economic phenomena and processes by calculating a proportion in the 
total (for instance, the share of households’ expenditures on buying food), the ration of the parts of the total among each other, as 
well as the impact of factors on the level of performance indicators by comparing their values and volumes before and after the 
change of the relevant factor.   
An  equity  method  serves  to  reflect  the  ratio,  the  proportions  of  the  two  groups  of  interrelated  and  balanced  economic 
indicators, the results of which should be identical.  
The  abovementioned  facts  lead  to  the  conclusion  that  complex  agri-food  market  research  is  a  prerequisite  for  further 
determination of strategies and tactics for its development. To do comprehensive agri-food market research and to get accurate 
information, it is the most appropriate to use the following methodological principles: purposefulness, complexity; consistency; 
systematic; dynamic; consideration of sector and territory specificity; objectivity; efficiency. 
Keywords: market conditions, agri-food market, system of market conjuncture management, agri-food products. 

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