Economics and Business Management

Wholesale turnover of food products in Ukraine: Assessment and managerial decision-making

Mykola Ilchuk, L. Berezovska, Ye. Ivanov
Download article
Abstract

The decline in Ukraine’s wholesale food turnover caused by the occupation of fertile land in the South and East, the destruction of agricultural enterprises, logistical problems, and mass emigration have become a serious issue that not only threatens food shortages and price increases, but also poses a threat to the food security of the population. Therefore, investigation into the causes and consequences of this phenomenon is extremely relevant. The purpose of this study was to identify the factors that determine the dynamics of wholesale turnover of food products in Ukraine, with further formulation of proposals to improve the efficiency of wholesale enterprises through managerial decision-making. The study was based on the comprehensive use of such methods as empirical data collection and analysis, bibliographic analysis of scientific literature, economic and statistical methods, including regression analysis, as well as the method of logical generalisation to systematise the results and formulate conclusions. The study identified the key factors that influence the volume of wholesale food turnover and are critical for ensuring the country’s food security. Economic analysis helped identify patterns and trends in the dynamics of turnover, while regression analysis helped quantify the impact of the identified factors and develop recommendations for managing this process. It was proposed to intensify the state regulation aimed at creating favourable conditions for the development of wholesale trade, combined with the modernisation of management processes at the level of wholesale enterprises. It was found that innovative approaches to cooperation with retail chains, such as in-depth analysis of their needs, optimisation of the assortment, building long-term relationships, and introduction of modern technologies, are valuable factors that influence the efficiency of management of wholesale enterprises. To ensure their sustainable development in the future, it is necessary to apply effective marketing strategies. The findings obtained in this study are of high practical significance for business entities engaged in wholesale trade in food products, as they allow making effective managerial decisions to increase the volume of wholesale turnover

Keywords

wholesale trade; products; marketing strategies; innovative approaches; competitiveness

Suggested citation
Ilchuk, M., Berezovska, L., & Ivanov, Ye. (2024). Wholesale turnover of food products in Ukraine: Assessment and managerial decision-making. Economics and Business Management, 15(3), 22-38. https://doi.org/10.31548/economics/3.2024.22
References

[1] Alkunain, B., Elzaki, R.M., & Al-Mahish, M. (2024). The impact of total expenditure shocks on food security: VAR model. Agricultural and Resource Economics: International Scientific E-Journal, 10(2), 290-315. doi: 10.51599/are.2024.10.02.12.

[2] Bagorka, M.O., Kadirus, I.G., & Yurchenko, N.I. (2021). Marketing approaches in sales management of wholesale trade enterprises. Entrepreneurship and Trade, 28, 7-14. doi: 10.36477/2522-12562021-28-01.

[3] Bassova, O.O., & Kogan, K.V. (2020). Monitoring of the state of capital of trade enterprises in Ukraine. Agrosvit, 9, 111-115. doi: 10.32702/2306-6792.2020.9.111.

[4] Boiko, V., Kwilinski, A., Misiuk, M., & Boiko, L. (2019). Competitive advantages of wholesale markets of agricultural products as a type of entrepreneurial activity: The experience of Ukraine and Poland. Economic Annals-XXI, 175(1-2), 68-72. doi: 10.21003/ea.V175-12.

[5] Bokii, O. (2023). Problems of state regulation and protection of the food market in crisis conditions. Food Resources, 11(20), 174-184. doi: 10.31073/foodresources2023-20-17.

[6] Chikov, I.A. (2019). Competition: Theoretical approaches to understanding the essence of the concept. Agrosvit, 10, 74-80. doi: 10.32702/2306-6792.2019.10.74.

[7] Deich, M.E., Tabachkova, N.A., Petchenko, M.V., & Sukhanova, M.O. (2023). Transformation of domestic trade in Ukraine. Scientific Works of DonNTU: Economic, 1(27), 60-69. doi: 10.31474/16800044-2023-1(27)-60-69.

[8] Fedotova, T.A., Lyzhnyk Yu.B., & Pytomets M.O. (2024). Modern trends in world food trade. Trade and Market of Ukraine, 2(52). doi: 10.33274/2079-4762-2022-52-2-135-143.

[9] Food safety. (n.d.). Retrieved from https://www.brcgs.com/our-standards/food-safety/.

[10] Franchuk, V.I., Melnyk, S.I., & Gobela, V.V. (2022). Assessment of factors influencing food security of Ukraine in the context of global challenges and threats. Eastern Europe: Economy, Business and Management, 3(36), 18-24. doi: 10.32782/easterneurope.36-3.

[11] Ilchuk, M., & Pankratova, L. (2020). Food products trade development and food supply chain problems in Ukraine. Ekonomika APK, 27(8), 22-30. doi: 10.32317/2221-1055.202008022.

[12] Ilchyshyn, S. (2023). Prerequisites and research tools of the domestic market of Ukraine. Academic Visions, 18. doi: 10.5281/zenodo.7920192.

[13] ISO 22000:2018. (2018). Food safety management systems – requirements for any organization in the food chain. Retrieved from https://www.iso.org/standard/88410.html.

[14] Kovalenko, O., & Kyrychenko, A. (2023). Transformations of global logistics food chains in the conditions of war in Ukraine. Food Resources, 11(20), 211-220. doi: 10.31073/foodresources2023-20-20.

[15] Kutsyk, P.O., Lupak, R.L., & Kachan, O.E. (2024). Peculiarities of the state policy of modernization of the internal trade system. Entrepreneurship and Trade, 41, 47-53. doi: 10.32782/2522-12562024-41-06.

[16] Kvasha, S., Andrei, P., Mancini, M.C., & Vakulenko, V. (2024). Food security in Ukraine today’s conditions. International Journal of Food Sciences and Nutrition, 75(6), 622-636. doi: 10.1080/09637486.2024.2379825.

[17] Lobachova, I. (2020). Economic analysis is a prerequisite for developing an enterprise’s turnover management strategy. Podilsk Scientific Bulletin, 3(15)-4(16), 71-78.

[18] Mishenin, Y., Koblianska, I., Yarova, I., Kovalova, O., & Bashlai, S. (2023). Food security, human health and the economy: A holistic approach to sustainable regulation. Agricultural and Resource Economics: International Scientific E-Journal, 9(4), 50-78. doi: 10.51599/are.2023.09.04.03.

[19] Non-current assets of enterprises by type of economic activity with distribution into large, medium, small and micro enterprises in 2013-2023. (n.d.). Retrieved from https://stat.gov.ua/uk/explorer?urn=SSSU:DF_ASSETS_2021_A_BALANCE.

[20] Official website of the State Statistics of Ukraine. (2021a). Sales volume and stocks of goods (products) at wholesale trade enterprises in 2017-2021. Retrieved from https://www.ukrstat.gov.ua/operativ/operativ2021/sr/obs_prod_i_zap_tovariv/arh_obs_pz_ot_2021_u.htm.

[21] Official website of the State Statistics of Ukraine. (2021b). Structure of the wholesale trade turnover of wholesale enterprises in 2005-2021. Retrieved from https://www.ukrstat.gov.ua/operativ/operativ2022/sr/sot/sot_rik/sot_rik_05_21ue.xls.

[22] Official website of the State Statistics of Ukraine. (2023). Retrieved from https://www.ukrstat.gov.ua/operativ/operativ2022/fin/pssg/orpsg_ek_2010_2021_ue.xlsx.

[23] Official website of the State Statistics of Ukraine. (2023a). The number of active economic entities by types of economic activity in 2010-2023. Retrieved from https://www.ukrstat.gov.ua/operativ/operativ2022/fin/pssg/ksg_ek_2010_2021_ue.xlsx.

[24] Official website of the State Statistics of Ukraine. (2023b). The number of employees at business entities by type of economic activity in 2010-2023. Retrieved from https://www.ukrstat.gov.ua/operativ/operativ2022/fin/pssg/knpsg_ek_2010_2021_ue.xlsx.

[25] Official website of the State Statistics of Ukraine. (2024). Wholesale and retail turnover of wholesale and retail enterprises in 2007-2024. (2024). Retrieved from https://www.ukrstat.gov.ua/operativ/operativ2024/sr/roz/arh_roz24_u.html.

[26] Official website of the State Statistics of Ukraine. (n.d.). Retrieved from https://www.ukrstat.gov.ua/.

[27] Order of the State Committee of Ukraine on Technical Regulation and Consumer Policy No. 457 “On National Classifier of Ukraine: Classification of Economic Activities DK 009:2010”. (2010, October). Retrieved from https://zakon.rada.gov.ua/rada/show/vb457609-10#Text.

[28] Perederii, T. (2024). Improvement of the strategic mechanism for ensuring the sustainable development of the trade enterprise on the basis of anti-crisis management. Economy and Society, 65, 65-71. doi: 10.32782/2524-0072/2024-65-71.

[29] Prodius, O., Afanasenko, M., & Puhlenko, V. (2024). Strategic directions for increasing the efficiency of trade enterprises in the conditions of martial law. Economy and Society, 63, 63-119. doi: 10.32782/2524-0072/2024-63-119.

[30] Pugachevska, K.Y., Lyzanets, A.G., & Gomba, M.V. (2021). Determinants of domestic trade development in Ukraine. Business Information, 10, 240-246. doi: 10.32983/2222-4459-2021-10240-246.

[31] Rahman, M.S., & Prus, D.V. (2020). Analysis of the Ukrainian wholesale market. Business Information, 7, 154-160. doi: 10.32983/2222-4459-2020-7-154-160.

[32] Report of the State Statistics Committee of Ukraine No. 18.1-12/32 “On Sales and Stocks of Goods (Products) in Wholesale Trade”. (2013, November). Retrieved from https://zakon.rada.gov.ua/laws/show/z1281-05#Text.

[33] Sirenko, S. (2023). The current state, problems and prospects of the development of internal trade of Ukraine. Herald of the Khmelnytskyi National University: Economic Sciences, 2, 230-234. doi: 10.31891/2307-5740-2023-316-2-37.

[34] Skydan, O., Lytvynchuk, I., Nykolyuk, O., Pyvovar, P., Ivaniuk, O., & Hrynyshyn, V. (2020). Formation and implementation of the state food security policy of Ukraine. Ekonomika APK, 27(7), 20-32. doi: 10.32317/2221-1055.202007020.

[35] The Chaddock Scale. (n.d.). Retrieved from http://ni.biz.ua/1/1_8/1_89302_shkala-cheddoka.html.