COMPARATIVE ANALYSIS OF CORN MARKETS IN TURKEY AND THE NETHERLANDS TO DETERMINE THE COUNTRY OF IMPORT OF UKRAINIAN PRODUCTS

Анотація

This paper presents a method of study and comparison of the markets of two countries – potential trading partners, which can be used by Ukrainian small and medium-sized businesses in the export decision-making process. The domestic markets of Turkey and the Netherlands were selected for a detailed study. The countries were selected based on data from the Kherson Regional Statistics Office, which shows the largest volumes of corn export in the EU region – to the Netherlands, in the Asian region – to Turkey. Corn was chosen because Ukraine ranks fourth in the ranking of world exporters of this product, and the growing demand in the world market for corn grain has been an impetus for national producers to increase production. The Trade Map tool was used to analyze the state of export and import operations in the global corn market. As a result of the study, several market characteristics were determined for both countries. They are the number of partner countries; the list of top 5 countries-importers of corn; the amount of import in 2020; market share of Ukrainian corn; market concentration (calculated based on the Herfindahl-Hirschman index); the price per ton of Ukrainian corn and competing countries; average duties, quotas; phytosanitary norms; means of protection of the internal market. On the example of a hypothetical company, the possibility of implementing a corn export project by an enterprise using the proposals of trading companies is modeled. Comparison of competitive prices and distances allowed choosing the approximate purchase price and the nearest company. A specific division of responsibilities between the seller and the buyer under the FOB in INCOTERMS 2020 has been made. On this basis, the company’s costs as a seller per ton of corn are calculated, which includes the purchase price of corn, loading and unloading, and the railroad transportation tariff. The economic calculations show that the Netherlands is a more attractive market for Ukrainian corn export. The main advantages are the free trade agreement between countries and therefore a zero duty rate, fewer documents to be processed in the export process, long experience of cooperation between countries, higher prices for Ukrainian corn in the Netherlands.

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