Uliana Kvitinskaya (Êâèòèíñêàÿ Ó.È.)

Odessa State Economic University

Features of the Ukrainian export of corn cultures.

In modern economic space, where base principles of competitive activity are formed on the basis of factors of globalization, the foreign trade is the extraordinarily important element of public economic policy.

In the context of the all greater deepening process of integration, the necessity of saving and increase of comparative advantages acquires in a production as possible of plenty of products becomes especially important value for every country. From this point of view, the special attention is deserved by the corn market of Ukraine, which provides about 35% export of agroindustrial complex (4% in the structure of general commodity export) and can bring an almost 1 milliard dollars  profit to the Ukrainian economy every year. 

For this reason note should be taken on factors that influence on activity of the Ukrainian exporters of grain. So, let us analyse (see Pic. 1).

 

imperfection of legislation

 

debt of the state in returning of the tax value-added

 

 

Dictation of prices

 
 


    Pic. 1 Factors that influence on activity of the Ukrainian exporters of grain

 

One of the basic  problems, that stops development of export potential of Ukraine, and also economic return from the export, there is a debt of the state from returning of export VAT (tax value-added).

For proceeding in valuable activity and addition to the circulating assets, export companies have to take credits. As a result expenses on realization of export activity increase additionally.

Practices of corn market are convinced also, that Law of Ukraine "On state support of agriculture of Ukraine" needs substantial revision and improvement.

Possibility of the administrative adjusting of market (minimum and highest prices, quotas) deprives the operators of market of possibility to make long-term agreements at the internal and export market actually. As a result Ukraine can forget about possibility of going into the most perspective world markets of sale of corn.

         The separate large block of questions that related to the economy of export operations are infrastructural charges. For example the problem of high railway tariffs on transportation of grain is very actual.

Ukraine practically is not protected from vibrations and natural changes which substantially influence on the export situation of world market. Also the problems of quality of corn and standardization are not worked out.

The illegal limits on moving of corn by territory of Ukraine and also for export are very important.

The consequences of similar activity are extremely negative. The Ukrainian exporters lose reputation because of  not completing or ill-timed contract execution.

The exporters of corn in Ukraine have unstable position at the market, and that is why they need greater support from the side of the state.

Unfortunately, in this time by the basic traders of corn from Ukraine, there are foreign companies in the world market: Glencore International AG, W.I.Grain Ltd., Alfred C Toefler International Gmbh, Cargill International S.A., Louis Dreyfus Negoce S.A., and other.

Large domestic traders which try to defend their interests in competitive activity for world markets get the basic share of the profits  not due to a difference between selling and purchases prices, but due to the compensation of VAT.  Sometimes politicians do the motto of abolition of VAT, but the abolition of VAT can indeed destroy the class of the Ukrainian exporters of corn, depriving their activity of financial viability. For this reason Ukraine can not only be delivered considerable entering of currencies economy, but also yet on the protracted term to throw away the opportunity to go out to the world markets of corn as an independent subject of world concord, instead of raw material appendage of corn multinational corporations.

 

 

 

Used literature

1. Î.Â. Îâñÿíí³êîâ Ôîðìàâàííÿ çîâí³øíüîòîðãîâåëüíèõ â³äíîñèí íà ðèíêó çåðíà â Óêðà¿í³./Åêîíîì³êà ÀÏÊ,2006, ¹5

2. www.proagro.com.ua

3. www.fas.usda.gov

4. www.agroperspectiva.com

5. www.blackseagrain.net

6. www.agrimarket.info