Theoretical Aspect of Development of Market Environment in Grain Farming

Sergey Aleksandrovich Zhidkov
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Sergey Aleksandrovich Zhidkov: Michurinsk State Agrarian University, Internatsionalnaya Str., 101, 393760, Michurinsk, Russia

The Journal of Social Sciences Research, 2018, 414-422 Special Issue: 3

Abstract: The purpose of the study is to develop theoretical provisions for development of the market environment in grain economy. During the research, the following methods were used: observation, logical representation, functional analysis, synthesis and scientific abstraction. The article considers the problem of formation of market environment in the grain economy, including in conditions of cyclical economic development. The economic space is a system of relations for placement of many economic entities on the territory, formation of scientifically based forms of their integration and the organization of interaction between them. It includes the environment for implementation of economic ties, including market relations. The market environment covers all spheres of the national economy of a country, experiencing the overlapping of specifics of each of the branches that make up its structure while preserving its universal attributes. With regard to its functioning, it is important to emphasize that within the framework of any market it is concretized by a limited set of rules (institutions) operating in the certain branch of national economy. This, on the one hand, imposes specific features of market relations in each technological chain of food subcomplexes of agro-industrial complex, and on the other, unifies the principles of organization of interaction in them. The market environment of the grain economy develops under general economic conditions and is subject to the effects of those economic trends that develop at the macroeconomic level. At present, they include: 1) adjustment of prices for raw materials (downward) and agricultural products (upward) in world markets; 2) volatility and cheaper national currency; 3) rejection of direct economic protectionism in relation to the productive sphere of national economy (this is one of the mandatory conditions of the World Trade Organization). Studying the theoretical positions of the existence of the market environment allowed concluding about its dualism: it is simultaneously a catalyst for development and its result. In general, market environment in the grain economy, forming economic ties between economic entities of related sectors of the economy, although it unites the grain market into a single whole, its heterogeneity requires the need for adjusting the interaction between them, especially in determining the proportions of distribution of the final cost of the product. In this regard, there is an objective need to influence the market from outside and within (from the side of the participants) in order to ensure fairness of the rules of management, the safety of existence and internal stability of all parties involved.

Date: 2018
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