ASSESSMENT OF FACTORS INFLUENCING THE FORMATION OF PRICES FOR AGRICULTURAL PRODUCTS
Abstract
The article is devoted to the study of scientific knowledge about the methods of evaluation that influence the formation of prices for agricultural products. The authors, based on the analysis of scientific knowledge about the methods of evaluation of factors that affect the formation of prices for agricultural products, found that it is important for agricultural producers to have risk management strategies to reduce the impact of price fluctuations on their income. It is proved that the use of the balance sheet method in our study is strategically important for analyzing the interaction of national markets and their impact on the world grain market and vice versa, while the balance sheet approach ensures an accurate distribution of resources (supply) and their use (demand), which makes it an effective tool for determining the state of the agricultural sector. It has been established that the market situation is mainly determined by the largest exporting countries, which actually set price standards for all global products. This implies that in order to study the pricing mechanisms, we are primarily interested in the countries that are the largest exporters of corn, not just the largest producers. The author's research and analysis showed that the concentration of corn consumption in the world can be divided into many zones, but there are clearly distinguished regions such as Asia, where countries are mostly deficit and import corn from the United States, and Central America, which also imports mainly from the United States and South America. North African countries and the European Union import mainly from South America. It is important to understand the centers of price formation to find reference markets, which can exist at different levels (global, European, regional, and local). At the same time, the study of reference markets in the global context allows us to better understand and predict the dynamics of corn prices, taking into account important global and regional factors.
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