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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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