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The role of wholesale markets of agricultural products in the output of domestic products on the market of the european union

The problem of promotion of agricultural products from producer to consumer hasn’t been solved in Ukraine. The promotion of products of small and medium producers has been organized inefficiently. The European Union market is difficult to access for most of Ukrainian producers of agricultural products, especially for small and medium. The Ukraine and the European Union are in the process of ratification of association agreement. The relevance of the supply of domestic agricultural production to the European Union market is growing in connection with the ratification of the association agreement. Issues connected with supply of domestic agricultural products on the EU market have been investigated in this paper. The European Union imposes complex demands on the quality of agricultural products which to be brought into their home market. Meeting the requirements of the EU for the quality of agricultural products require from the presence to agricultural producer of additional working capital. Small and medium producers can not generate large quantities of identical products for export. Small and medium manufacturers cannot provide calibration and packaging products as well. Supplies of agricultural products to the EU are limited by quotas. Retail networks provide cash with a delay of 60 days for products delivered in the EU.

 Most of domestic producers don not agree to work under conditions of deferred payment. The domestic producers draw a lot of documents when sending parties of fruits and vegetables for export. Only large agricultural enterprises are able to meet EU requirements e.g. agricultural holdings. Agricultural holdings have large amounts of working capital. Small and medium enterprises suffer from intense competition from large agricultural holdings. Wholesale markets of agricultural products (WMAP) have significant potential for the expending of domestic agricultural products to foreign markets. The research of services of wholesale markets has been held in the article. WMAP “Shaver” has made the first steps in the expanding of domestic products to the EU market. The location of WMAP “Shaver” is beneficial. Market is located near the borders of countries members of the European Union. Market provides services for packaging products. Packing department is equipped on the wholesale market. Modern Dutch filling line is installed in the packing department. The line packs up to 100 tons products per month. The cooperative movement is at development stage in Ukraine. Many cooperatives do not work effectively in the country. Small and medium producers cannot form consignments of high quality fruit and vegetable products with longer shelf and transportation terms. The manufacturers sell their products in the field. Wholesale markets cannot take away agricultural produce from the fields. Wholesale markets have not large-capacity vehicles to transport goods. Isolated small manufacturers are required clear mandates from WMAP. Producers and cooperatives lack the necessary volume of working capital. Small and medium producers can not make delivery of goods on terms to the European market. Wholesale markets are not prepared to provide producers with the same type of high quality seed.

clear mandates from central wholesale markets. Producers and cooperatives lack the necessary volume of working capital. Small and medium producers can not make delivery of goods to the European market on terms. Wholesale markets are not prepared to provide producers with the same type of high quality seed.

Central wholesale markets are not prepared to carry out the delivery of batches from the field to market using their own vehicles. The legal framework is available for the cooperation development. Cooperation is the way of improving the efficiency of small and medium enterprises. In Ukraine the cooperation is not developed in agriculture. The cooperation in agriculture needs to be developed. It is necessary to give the status of producers to agricultural cooperatives. It is necessary to create government departments in central wholesale markets. Government departments should plan export of domestic agricultural products abroad. These departments should conduct regular monitoring of market conditions. Government departments should also provide free information on market conditions to domestic producers as well. The state intervention has recommended to increase for the work of central wholesale markets. The author recommends to deepen and to broaden the legislation in the field of state and municipal authorities’ control of central wholesale markets.

Key words: market, agricultural market, agricultural market infrastructure, marketing channels of agricultural products, wholesale trade of agricultural products, wholesale market of agricultural products (WMAP), export of domestic agricultural products, market of the European Union, cooperative movement, government intervention.

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