Grain pricing in Ukraine: A case study of malted barley

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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.

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    • Table 1. Dynamics of barley prices in 2016–2021 MY, USD per ton
    • Table 2. Dynamics of barley production and its purchasing prices in 2016–2021 MY, in % to the previous year
    • Table 3. Barley price fluctuations in 2016–2021 MY, USD per ton
    • Table 4. Dynamics of purchasing prices of fodder and malted barley in 2016–2021 MY, $.
    • Table 5. Indicators of malted barley production by agricultural companies depending on the level of the selling price of barley
    • Table 6. Dynamics of barley prices and the cost of grain storage services during the marketing year, USD per ton
    • Conceptualization
      Mariia V. Dykha, Viktoriia Kuzinа, Kostyantyn Serdyukov
    • Data curation
      Mariia V. Dykha, Viktoriia Kuzinа
    • Investigation
      Mariia V. Dykha, Viktoriia Kuzinа, Kostyantyn Serdyukov
    • Methodology
      Mariia V. Dykha
    • Project administration
      Mariia V. Dykha
    • Supervision
      Mariia V. Dykha
    • Validation
      Mariia V. Dykha
    • Writing – original draft
      Mariia V. Dykha
    • Formal Analysis
      Viktoriia Kuzinа
    • Resources
      Viktoriia Kuzinа, Kostyantyn Serdyukov
    • Software
      Viktoriia Kuzinа
    • Writing – review & editing
      Viktoriia Kuzinа
    • Funding acquisition
      Kostyantyn Serdyukov
    • Visualization
      Kostyantyn Serdyukov