LOGISTICS APPROACHES TO THE VEGETABLE DISTRIBUTION AT AGRICULTURAL ENTERPRISES

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LOGISTICS APPROACHES TO THE VEGETABLE DISTRIBUTION AT AGRICULTURAL ENTERPRISES

Journal Title: Інноваційна економіка - Year 2017, Vol 68, Issue 3

Abstract

Purpose of research is to ground scientifically an influence of logistic principles on an efficiency of a vegetable distribution. The objectives of the research are to determine a level of vegetable commodity production at farms in comparison with an average level in Ukraine, to investigate results of vegetable distribution at the level of Zaporozhye region, to reveal the logistic distribution factors, affecting on an efficiency of vegetable distribution. Methodology of research. In the research, basic scientific methods were used in order to identify factors of influence on the results of a vegetable production and distribution. Such economic and statistical research methods are used: series of dynamics to study trends of production volume, changes in costs per unit area of crops, changes in farm prime costs and profitability of a vegetable branch; factor analysis and trend alignment to identify a factor affecting a change of distribution indicators. The research was carried out with the support of Ukrainian horticulture business development project. The source of the information was reports of farms from Zaporozhye region. Findings. It is maintained that a vegetable volume at a Ukrainian food market is formed under the influence of production and logistics factors. There are some regions, for example, Zaporozhye region, where unprofitable production has been observed in recent years. It is revealed that an expanded reproduction doesn’t occur at farms during 2006-2015 years. It is determined that one of the restraining factors of a vegetable production development at farms is a high prime cost of growing vegetables. A clear tendency of the growth in the prime cost per 1 hectare was revealed. During the research period, the prime cost per hectare of vegetable acreage increases tenfold. As a result, the profitability declines, despite the growth of a selling price and commodity output. It is determined that a potential of the oblast in the vegetable production both open and closed ground is quite significant, but it is not fully used. The lack of investment in the industry and adapted store facilities to a quality storage and year-round usage of vegetables at the market do not give an opportunity to compete with vegetable producers at a domestic or European market. Originality. The methodology of research of the farming results has been further developed, which, unlike others, takes logistical approaches to sales management with the help of analysis of the dynamics and growth rates basic sales figures. It contributes to a justified definition of the cycles of trade flows. Practical value. The research results have shown that the main factors of influence on distribution efficiency are marketing factors such as a selling price and marketability. It is maintained that today’s selling price at a vegetable branch is formed under a principle of ensuring minimization of a profit. The selling price increases due to the prime cost of vegetables, but not to economic situation at the market. The obtained conclusions give premises for further monographic research of the logistic factors influence on vegetable sales at certain farms of Zaporozhye region.

Authors and Affiliations

Daria Legeza

Keywords

logistics logistics approaches product flow distribution efficiency factors vegetables farms.

EP ID EP321890
DOI -
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