CONCEPTUAL MODEL OF THE CYCLICAL DEVELOPMENT OF THE SUGAR MARKET IN UKRAINE AND THE WORLD

Abstract

Subject. The theoretical and methodological provisions and practical foundations for the development of the sugar market. Purpose. Substantiate the conceptual model of cyclical development of the sugar market in Ukraine and the world in order to increase the efficiency of domestic production in conditions of economic instability. Methods. To achieve the goal of the study, general scientific and special methods were used: dialectical and logical to generalize the scientific foundations for substantiating the model of the cyclical development of the sugar market; economic and statistical – for the processing and analysis of statistical data; tabular and graphic – to visualize and summarize the results of the study. Results. The signs of cyclicity of the world and domestic sugar markets are revealed, which proved the need to substantiate the conceptual model of their cyclical development. During periods of overproduction of sugar, prices are expected to fall, which motivates producers to reduce production volumes. As a result, domestic demand is not met, leading to higher prices, which in turn stimulate production. Such cycles are periodically repeated both in the Ukrainian and world sugar markets. At the same time, the Ukrainian sugar market is in close connection with the world market: the prices of Ukrainian sugar producers are affected not only by the cyclical development of the domestic market, but also by the cyclical nature of the global sugar market, which confirms the close relationship between changes in prices of domestic producers and changes in world consumption, and as well as changes in exchange prices for sugar at the exchange rate. Insufficient production volumes are regulated by the formed stocks and the increase in import volumes. The cyclical development of the world sugar market can be used by domestic producers to increase the volume of sales of their products in foreign markets during periods of overproduction and during periods of lack of production through the mechanism of stockpiling. Scope of results. The results are of a scientific and practical nature and can be used by scientists in further research to build other models of the cyclical development of industries in the food sector. They can serve as a source of reference and methodological information and be used by economists, specialists from food and processing industries, specialists from authorities, scientists, teachers, graduate students and students of higher educational institutions.