Temnenko S. Formation and development of the feed additives market

The dissertation substantiates theoretical and methodical approaches and develops practical recommendations for improving the organizational and economic mechanism of the formation and functioning of the market of feed additives. The author's view on the essence of the feed additives market as an economic environment that performs the function of a coordinating mechanism, where in conditions of competition is formulated there is an interaction of producers, sellers and consumers of feed additives, on the basis of which the general equilibrium of prices for the corresponding products is formed. The place of this market among other commodity markets is determined by a number of classification features. The system-forming characteristics of the market of feed additives have been determined. An improved approach to the classification of feed additives is proposed. It has been established that the feature of feed additives as a commodity is relatively simple transportability and a long shelf life. This allows consumers to stock up on feed additives, which is especially important in the economic uncertainty of martial law and significantly minimizes the risks associated with supply disruptions. Feed additives should be considered as a liquid product with a short turnover period, so the organization of their inventory periodically needs to be optimized taking into account possible changes in the demand structure. Another feature of feed additives as a product is that the cost of state registration and the cost of scientific research are included in their cost by the manufacturer. As a result, a legally imported feed additive that has passed state registration and has a permit for circulation in our country can cost 20-30% more than a counterfeit additive imported without appropriate permits. It was found out that during 2018-2020 in Ukraine, the share of livestock and poultry, and therefore the volume of production of livestock products, in large enterprises increased. This gives reason to consider large agricultural enterprises specializing in the production of livestock products as the main consumers of feed additives in Ukraine. On the other hand, the role of small agricultural producers as buyers in the market of feed additives has not been very noticeable in recent years. The study of the supply on the market of feed additives showed a high dependence of the domestic market on imports. It is difficult for Ukrainian manufacturers to compete with foreign ones, primarily due to the limited range of registered products and significantly weaker financial and scientific potential. The influence of the main trends on the volume of the feed additives market and on its business activity has been studied. It was found that the main drivers that will stimulate the growth of the feed additives market may be: increasing requirements for the quality and safety of livestock products in the domestic market; introduction of innovative animal feeding technologies; increasing the export of livestock products to the EU countries, which will stimulate domestic producers to switch to organic methods of raising animals and wider use of feed additives as safe substitutes for banned growth stimulants for agricultural animals. The factors that have a positive effect on the growth of the feed additives market in Ukraine have been identified. It has been proven that the introduction of European regulatory mechanisms into domestic legislation mostly provides broad opportunities for business, eliminates unnecessary bureaucratic obstacles that previously created an additional administrative burden on market operators. However, the lack of developed market or administrative safeguards in Ukraine, which operate in EU countries, can lead to crisis situations and the emergence of threats to the health of people or animals. The positive impact on the development of the feed additives market of the adoption of a holistic concept of the development of the agrarian sector of the economy and animal husbandry is substantiated.