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Essential quality of category “agro-food market”, its role and place in the structure of AIC
The research of the conceptional conditions of agricultural market existence and food showed that today there is no exact
interpretation of the category “agro-food market” in the categorial and conceptual mechanism of agrarian economics, the notion
is identified with the category of “agrarian market” or “market for farm products”, that is extended to the level of “agro-industrial
market” by certain group of the scientists.
The lack of exact meaningful border of the “agro-food market” category complicates the further treatment of the
scientifically substantiated innovation and limits the opportunity of work optimization as agro-food market.
As far as major part of the agricultural production is used immediately for nourishment or is remade and consumed as
provisions by population, its market is reasonably examined in the context of the agro-food market’s forming. Agro-food
resources and provisions are the object of the buying and selling on the given market.
In I.Lopashchuk opinion, “agro-food market” is the system of social and economic relations in the sphere of agro-industrial
production, re-distribution, interchange and resources’ consumption that was formed under the influence of demand and supply.
However, from the research results, in our opinion, agro-food market is reasonably examined as the system that envelopes
broad range of economic relations, that is showed in the process of the interaction between agricultural producers, remade
factories (food industry), go-betweens (the operators of exchange, wholesale and retail trade) and other market subject apropos
movement of agro-food resources, and final consumers too.
So, “agrarian market” should be perceived as the system of the economic relations, apropos buying and selling of
exceptionally agricultural products (the object of labor): raw material and products that was worked up by primary processing.
In addition to that, “agro-industrial market” is a market of production means (equipment, technics, means of chemicalization
and so on), that secure effective work of agro-industrial complex. Such thought is held by V. Andriichuk,
P. Haidutskyi, P. Sabluk and others.
So given categories are independent and can’t be used as interchangeable. It is a need to lay the stress on that the interaction
of these markets forms market structure of all agro-industrial complex.
The most important characteristic of agro-food market is its social direction. The main factors that determine the state and
dynamics of elements of the market mechanism are biological needs in food stuff, paying capacity of population that are formed
by producers.
The aim of agro-food market is worthy supposed a satisfaction of consumers’ needs in food stuff and agricultural raw
materials through the market mechanism of demand and supply.
The results of our research affirm that agro-food market is structural unit of AIC that connects two economic industries:
agriculture and food industry. Its object is contentment of consumers’ needs in food stuff and agricultural raw materials that
serves as a basis of food production through the market mechanism of demand and supply. In addition to that, identifying market
sign is agro-food resources and provisions, that is the subject of buying and selling. Functioning complicacy of agro-food market
depends on availability of huge number of subjects that ensure production, movement, distribution and consumption of agro-
provisions.
Keywords: agro-food market, market structure, subjects of the agri-food market.
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