Sugar-beet industry of Ukraine in terms of instability of the world sugar market

Volodymyr Bondar and Anatolii Fursa

Ekonomika, Journal for Economic Theory and Practice and Social Issues, 2018, vol. 25, issue 7

Abstract: The purpose of the article is to substantiate strategic directions, development indicators, and the specific measures for highperformance functioning of the sugar-beet industry of Ukraine in terms of liberalization of the sugar market and intensification of the competition for a period up to 2025. Research methods. In the research process have been used the following scientific methods: system analysis for determining of trends of the world sugar market; dynamic rows for display production and consumption of sugar in the period between 2003 and 2016; expert estimates of sugar surplus in 2017-18 marketing year; statistical for assessment of production volumes of sugar beets and sugar in Ukraine in general, and in regions in particular; forecasting of potential development opportunities for the sugar beet production for a period up to 2025. Research results. It has been analyzed the modern tendencies and contradictions of the world and internal markets of sugar, which can be characterized by considerable volatility and sharp changes in price conditions. The identified reasons for aforementioned changes are the frequent abnormalities of the weather conditions, as well as the transition of the EU countries to the free sugar market, which greatly increased the competition in the market. The research uncovered that 2015-16 and 2016-17 marketing years were characterized by a significant shortage of sugar, however 2017/18 marketing year has shown significant surplus of almost 5 million tons of production, which caused a significant decrease (approximately 2 times) in price indexes. It has been noted the lagging of a number of indicators in the field of beet cultivation in Ukraine in comparison with the world-class indicators. In modern conditions, concrete measures to optimize and stabilize the sugar beet industry of Ukraine should be taken to adapt to the complex market conditions, harmonize the legal framework with world standards, modernize the sugar factories, diversify the industry in the production of not only sugar, but bioethanol, biogas, electricity, fodder and other products. It has been concluded that the sugar beet subcomplex of Ukraine should complete the modernization of processing enterprises in the difficult conditions of instability of the world market, harmonize the regulatory framework according to the established models in Western Europe. Elements of scientific novelty. It has been offered the conceptual foundations and concrete measures of stabilization and harmonization of development of sugar beet industry of Ukraine. The indicators of its development for a period up to 2025 have been substantiated. Practical significance. It has been revealed the real conditions and possibilities of perspective development, based on the scale of production, its yield, which would contribute to the solving of problems and improve the efficiency of sugar beet subcomplex. Tabl.: 1. Figs.: 6. Refs.: 12.

Keywords: Crop; Production/Industries (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:ags:sereko:411552

DOI: 10.22004/ag.econ.411552

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