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Оrganisational economic principles of forming livestock products distribution system at agriculture enterprises of Ukraine
It has been proved that the formation of a market promotion is primarily related to the choice of the most effective channels for its distribution, defining potential customers, costs reduce and products competitiveness improve. Since the transformation of the agricultural sector involves bringing the economic system into line with the new economic conditions, there is a need to diversify the institutional framework for the promotion and improvement of existing market channels. The products distribution system operates on the basis of the strategy that includes both selection of economically efficient distribution channels and direct distribution of products, the performance criterion of which are speed of goods movement, distribution costs and sales volumes. Two basic prerequisites for successful marketing strategies are established. First, each product group sales should match the phase of its life cycle and goals of the organization. Second, the strategy must correspond the real situation at the market.
Marketing strategy includes: the choice of goals, customers or groups of customers as well as buyers and market horizon (buyers horizon is the first sales link with products ownership, and the market horizon is the final user), measures on the market completing (number of retailers), forms of organization (agreement on economic sales channels).
The main reasons of difficulties in distribution should include:
- lack of efficient system of livestock production in the "producer - processor - the consumer " chain;
- negative chain of intermediate dealers;
- uncoordinated processes of livestock production, processing and marketing;
- unstable and inadequate purchasing prices for livestock products and the lack of organizational and economic mechanisms of regulation of relations in the "production-harvesting-processing- sale" system which results in a disproportionate distribution of income between the parties;
- unresolved organizational problems and inadequate financial and economic mechanism of state support for the yielding and storage of livestock products produced in farms;
- poorly developed infrastructure of the agricultural market and limited government funding of the establishment, development and maintenance of cooperative associations and other farm producers;
- lack of practical mechanisms to improve the technological conditions of livestock production in farms aiming at their safety and quality improve and as a result, increase in its uncompetitiveness.
Thus, an urgent problem for agricultural producers is the lack of experience in the implementation of products in the imperfect market relations developed in Ukraine. In addition, the low purchase prices for agricultural products retail food prices are high, due to the monopoly of intermediaries, a high proportion of transaction costs, and multichain and unclear goods movement channels.
Agricultural producers have not a wide selection of distribution channels because of restructuring of the economic mechanism and social production transformation in the country, which affected adversely the system of relations between producers and consumers of agricultural products. In addition, the lack of extensive infrastructure of the commodity market, difficult financial situation in agricultural and processing enterprises, reduce in demand for the products , and the rejection of state regulation of agricultural market have emphasized the problem of sales.
Key words: agricultural enterprises, farms, sales, marketing channels, price.
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