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Problems and prospects of beef cattle products market infrastructure
Despite a number of scientific studies on the development beef cattle products market, beef cattle market infrastructure
functioning in Ukraine remains low, which requires substantiation of new approaches to solving this problem.
The aim of our research was to study the current state of beef cattle production market infrastructure and to determine its
development priorities.
To achieve the aim of our scientific research we used the following methods: dialectical, abstract and logical, comparative,
monographic as well as that of synthesis.
The study has found that overall global market of beef and veal is sufficiently stable. Thus, global production of beef and
veal increased by 1.044 m tons. (+ 1.8 %) in 2012–2014, the overall domestic consumption increased by 398 thousand. tons.
(+ 0.7 %), export – to 1.343.000 tons (+ 17.2 %) within the same period. The leading exporters of lamb and beef in 2014 were
Brazil (2,03 m t), India (1,875 m t), Australia (1,56 m t) and the leading importers were the USA (1,055 m t), Russian Federation
(1,02 m t), Japan (760.000 t). [1]. Thus, what is the situation with the beef cattle products in Ukraine? The answer to this question
is ambiguous. In 1990 beef and veal share in the total meat production (in slaughter weight) in all categories of farms amounted
to 45.5 % (1,985,400 tons) in 2014 it was 17.5 % (412,700 tons). ). The share of world meat production for Ukraine has no more
than 1 % (2-2.4 m t), while the share for China, the US and Brazil is 80.41 and 23 % respectively. Almost half of the gross meat
production in slaughter weight is sold on the Ukrainian domestic market as raw meat products, including at least 35–40 % of
products from small farms where animals are slaughtered directly at the farm yards or on private mini slaughterhouses.
Therefore, it is extremely important nowadays to organize wholesale livestock markets on the basis of processing plants and the
process of their formation can look like follows. It is advisable to take an area of 5-6 hectares for cattle market and parking, to place
slaughter points, storage fodder facilities, rooms for tendering and paperwork, veterinary service and bank departments. The pens for
animals should be divided into several groups according to the type of farm animals. The facilities of meat processing plants located in
cities meet all these requirements. Tendering procedures can be carried out using a terminal (price based on private arrangements or on
the agreed procedure defined by agreement between the seller and the administration of the market) and auction (the price is determined
at public auction) forms of trade. To trade a certain type of livestock it is advisable to establish a particular day and to give regularly
(weekly) special newsletter highlighting the results of bidding as well as forecasts for the nearest perspective. Buyers inspect the goods,
negotiate the price, and, when the decision has been made, vehicles with cattle drives into the weighhouse where the weighted animals
are loaded into containers (a vehicle is placed on the trestle). Payments between buyers and sellers is carried out directly, the market gets
its market fee for every head, as well as for any vehicle entry.
Infrastructure of meat livestock products market is an important part in the matters of slaughterhouses certification, which
requires legislative regulation, veterinary and sanitary rules for slaughterhouses, animals slaughtering in farms are not regulated
with slaughter points certification mechanisms. The slaughter points certification process should include the following
components: location and equipment of slaughter points; requirements for farm animals acceptance for slaughter of (acceptance
of animals for slaughter must be carried out only if there is a permit from the State Veterinary Service, animal identification signs
and animal passports); requirements for slaughter products (hygiene rules on slaughter are to be introduced on cutting and
examination, including bonning, cutting, freezing and storage).
Thus, the problems of beef cattle market infrastructure development are primarily related to legal and financial support.
Budget deficit and failure to comply with regulations hinder the development of agricultural market infrastructure in general,
including beef cattle market.
Priority directions of beef cattle market infrastructure development, in our opinion, is the formation and development of
livestock markets; organization of slaughter products wholesale; development of certified slaughterhouses network.
Keywords: infrastructure, beef cattle, live cattle market, wholesale markets.
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