Development of Grain Logistics in Ukraine

• Main Authors: Kaliuzhna Olena, Ivanenko Tetiana, Martirosian Yana
• Format: Article
• Language: English
• Published: Mykolayiv National Agrarian University 2019-03-01
• Series: Modern Economics
• Subjects: logistics; grain logistics; transportation; infrastructure; sales; supplies; transport; seasonality; production; efficiency
• Online Access: https://modecon.mnau.edu.ua/en/?smd_process_download=1&download_id=10848

Introduction. Taking into account the peculiarities of the territorial organization of the agrarian sector (the remoteness of the main markets for the sale of products from the places of its production), the potential for exports expanding depends directly on the capabilities of logistics. Agrarian enterprises are able to optimize incoming and outgoing flows of goods, increasing their profitability in line with changing external and internal market conditions, due to improved system of optimization of supply and sale. A significant increase in export is possible only if the logistics infrastructure is upgraded and its capabilities are expanded. Purpose. The aim is to determine the current state of logistics of the grain market of Ukraine, to justify the development of certain elements of the system of storage, transportation and loading due to the level of their profitability and importance for the production, processing and export of grain. Results. The article reveals the role of the logistics system in optimizing the operation of the grain market. Various approaches to the definition of “logistics” and “grain logistics” are presented. The main tasks of the logistics system in the system of functioning of the grain market are defined. The main properties of the logistics system are highlighted, such as: the presence and priority of the processes of transformation of material flows, complexity of structuring, hierarchy, the appearance, a display of a synergistic effect. The process and sequence of formation of the logistics system of the grain market are analyzed. The most common ways of transporting grain in Ukraine are investigated and a description of each individual element is given. The main problems of the development of transport logistics in Ukraine are systematized. The process of selling grain by various types of transport is described briefly and a possible improvement option is analyzed. The possibility of improving the use of river transport as one of the promising areas of grain logistics is considered. Examples of successful logistics formation in large agricultural enterprises are given. There are conclusions about the logistical approach in organization of sales activity. Some options for improving the transport component of the logistics system are revealed. Conclusions. Ukraine’s logistics system needs modernization of existing and finding out new capacities, clear development of the system of grain transportation from producers to port elevators, efficient use of elevator capacities, improvement of storage system, construction of river barges for grain transportation and development of rail transport. Such a mutual mechanism of partnership development between the agro-industrial complex and the transport system can be a guarantee of efficient grain logistics.