Grain pricing in Ukraine: A case study of malted barley

Abstract

The agrarian market participants operate in a changing market environment. Their activities are characterized by a high level of risk, in particular, price risk, which determines the likelihood of failure in achieving the planned results. The purpose of the paper is to analyze the dynamics of prices for malted barley and determine the main factors influencing the price of malted barley in the agricultural market of Ukraine. The theoretical and methodological basis of the study is the scientific works of domestic and foreign authors on the problems of pricing management. Methods of data analysis, synthesis, and generalization of results are used. As a result, one can notice a high level of price fluctuations, significant price fluctuations during the year, absence of a uniform inversely proportional effect between the volume of barley production and its purchasing prices, and presence of disparity between the selling price of barley and the production costs of grain producers. The key factors that determine the price of malted barley include market saturation, grain quality, production expenditures, conditions on the market of barley fodder, contractual relations (which are sufficiently standardized but do not protect agricultural producers from risks), public policy through regulation market. The study outlined recommendations regarding the need to improve the legal regulation of relations and the development of a system to ensure the functioning of the grain market, effective cost management, introduction of innovative agrotechnologies, and financial hedging instruments.