Increase In Price Of Products Research Articles

재활용 가능성을 고려한 제품 설계 및 재활용 운영 전략

This study investigates the interaction between product recyclability, corporate profits, and consumer behavior. Based on previous studies on environmental economics and product design, we derive an optimal recycling strategy by analyzing the impact of product design's recycling rate on operations, environment, and profit. Through a model that reflects consumer preference for environmentally friendly products, we investigate the impact of a manufacturing firm’s choice of recycling level, product sales price, and collection strategy for used products on the firm's profit as well as recycling performance. Through the analysis, we reveal that an increase in the recyclability of a product leads to an increase in product price, collection price, consumer demand, and collection quantity. This study contributes to the extant literature in that it enhances understanding of the recycling process and derives its optimal structure and strategy. Additionally, the results of this study provide useful insights for firms to fulfill their environmental responsibilities through product recycling and build a sustainable business capability. This study is significant in that it proposes a method of establishing a product pricing policy by considering consumers' sensitivity to product price and collection price, and establishing an effective and efficient recycling strategy by considering recycling and production costs.

Determinação dos fatores que afetam os termos de comércio domésticos na produção de tomate estufa

ABSTRACT: Agriculture plays a leading role in the economic growth and development process. Ensuring the continuity of production depends on the purchasing power of the producers. The sustainability of production and the development of the rural welfare index in favor of the producers will increase the driving role of the agricultural sector, which is also a resource for other sectors. This study determined the variables affecting the Domestic Terms of Trade of the greenhouse tomato producers in Antalya, Türkiye. The product price has been determined as the major factor affecting the Domestic Terms of Trade. In addition, it was concluded that a one-unit increase in the product price increases the Domestic Terms of Trade by 34.99 units. Interviews revealed that the continuity of consumption needs is more important than the continuity of production. It has been determined that the high and variable input costs cause erosion in the incomes of the producers. Agricultural policies will be more effective both in the short and long term when the aim is to improve the welfare and purchasing power of producers, rather than intervening in agricultural prices or reducing prices.

The Impact of Energy Consumption Costs on the Profitability of Production Companies in Poland in the Context of the Energy Crisis

The paper presents the results of the authors’ research on the share of energy costs in revenues and their impact on the profitability of companies. This research was inspired by a large increase in energy prices in 2022. The authors analyzed the shares of energy consumption costs in production companies from various industries, using various sources: scientific literature, expert studies, and statistical data. Based on the results of these analyses, the authors simulated the impact of changes in energy prices on the profitability of companies. The research results are as follows: according to the authors, the share of these costs in the value of sales is much lower (several percent) than presented in various literature sources (a dozen or so, and even up to 30% in some cases). Despite this, however, the change in energy prices should significantly reduce profitability according to the simulations conducted by the authors. However, the financial reports analyzed by the authors show that profitability in many cases not only did not deteriorate, but revenues and profits increased in a large number of companies. In many cases, this can be explained by the actions taken by companies to reduce energy consumption costs and by increases in product prices. The authors’ research also shows that if factors such as the specificity of the industry or the size of the company have an impact on energy efficiency, it is only to a small extent. The share of energy costs in sales and financial results, even within a given industry and in companies of similar size, varies greatly. The authors therefore believe that the effectiveness of the management of a given company has the greatest impact. Therefore, the results of the analysis differ significantly from the results of studies presented in the literature. Energy consumption data were analyzed using various literature sources from different countries. However, the main analyses conducted by the authors focused on Poland.

Minimum production scale for economic feasibility of a titanium dioxide plant

AbstractTitanium dioxide (TiO2) is an important industrial chemical that is completely import dependent in Nigeria. Local entrepreneurs seeking to establish a production scale TiO2 plant in Nigeria face both financing challenges and challenges to right‐sizing plants to best fit the local markets. In this study, we ask: What is the minimum scale for the economic feasibility of establishing a TiO2 plant in Nigeria, considering the country's currently small market size for the chemical and the limitations imposed by the economy of scale? We determine that the required minimum production scale varies from 21 867.44 to 11 202.16 tonnes per annum (tpa) for an investment lifetime of 10–20 years – compared to a typical developed world plant size of 150 000 tpa. A sensitivity study shows that minimum production scale decreases rapidly as product price increases, enhancing the economic prospect of a small‐scale plant in Nigeria where the retail price of TiO2 is as high as 328% of the average global price. Further studies emphasize the importance of future growth in demand and government incentives in enhancing the plant's economic prospect. The modeling framework developed and used for this analysis is adaptable to other applications in determining minimum scales for economic feasibility of constructing and operating flexible chemical plants in young and uncertain markets with potential to scale in the future. This study offers unique contributions to address investment challenges around chemical manufacturing, a critical component of industrialization and economic development for developing countries.

The impact of heterogeneity of service trade policy restrictions on manufacturing exports of China: focus on free trade agreements

PurposeBased on the research of free trade agreements on alleviating service trade policy heterogeneity and its impact on manufacturing exports, this article aims to not only provide a basis for China's strategy of promoting regional economic integration, but also provide a policy reference for the manufacturing industry to expand the export market space.Design/methodology/approachThis study uses the two principles of “answering” and “scoring” to quantify the indicators of service trade policy heterogeneity to test the relationship between heterogeneity of service trade policy, free trade agreement and manufacturing export.FindingsAccording to empirical study, the export of Chinese manufacturing firms is severely hampered by the variety of service trade regulations, and the bigger the enterprise, the more hampered it is. In comparison to communications, transport and commerce, the financial industry's policy heterogeneity has a greater negative impact on certain industries. The major methods used to reduce the impact of service trade policy heterogeneity on manufacturing exports are product price increases and product quantity reductions. Also, by reducing the heterogeneity of service trade regulations and fostering industrial exports, the free trade agreement that China has signed can be quite successful. The open commitment in the area of national treatment, however, can reduce policy heterogeneity and advance manufacturing.Originality/valueIn the area of market access, the effect of export is superior to the open promise. Thus, in order to effectively support the stabilization of international trade, China should actively encourage the negotiation and signing of higher-quality and mutually beneficial free trade agreements.

컴파운딩 업체의 TDABC 적용사례 연구: K사 TDABC 적용 및 수익성 개선

Purpose - The purpose of this study is to find out how a company can do reasonable cost calculations in a simple way and establish profitability improvement strategies based on the results. Design/methodology/approach - In this study, a case that compounding company K applied TDABC was studied. A case study was conducted on the process of company K reviewing and applying TDABC and the process of implementing the cost calculation for each product by applying TDABC, and establishing a profitability improvement strategy for each product based on the results. Findings - Company K rearranged the production standard information of the compounding industry such as productivity and batch size of each product to apply TDABC. Cost calculation was performed for each product according to the revised production standard information. After the cost calculation for each product was carried out, Company K established a strategy to improve profitability of each product. The profitability improvement strategy was implemented in two ways: a cost reduction strategy and a product price increase strategy. As a result of the final strategy execution, the profitability of each product was improved. Research implications or Originality - This study found a reasonable costing standard in consideration of the specificity of the research target company, and applied it to cost calculation cost for each product. It contains the process of establishing production and sales strategies for each product based on the cost calculation results. It is expected that this case study will serve as a good reference material for establishing cost calculation and profitability improvement strategies in similar businesses.

Offering custom products using a C2M model: Collaborating with an E-commerce platform

The e-commerce platform-driven Customer-to-Manufacturer (C2M) strategy is an emerging business model in which the e-commerce platform collects customer preference data and shares this information with manufacturers to facilitate product customization. This model has not been explored in the literature. We examine, from both the platform's and the manufacturer's perspectives, how to effectively offer custom products using the C2M approach. We find that offering custom products is not optimal when the consumers' fit sensitivity (to deviations from their ideal product) is low. When fit sensitivity is medium, offering custom products partially is an optimal strategy. When fit sensitivity is high, offering custom products fully is an optimal strategy. We show that consumers covered in the customization scope receive a greater surplus than customers who buy standard products. Surprisingly, the consumer surplus for the former group decreases with C2M while it remains unchanged for the latter group even though the product price increases. To mitigate the inefficiency arising in a decentralized channel compared to a centralized channel, we propose two types of mechanisms: a commission plus cost-sharing contract and bargaining. These mechanisms facilitate collaboration between the e-commerce platform and the manufacturer and achieve coordination in the supply chain. We extend the model in several ways to verify robustness. Our findings offer managerial insights for e-commerce platforms and manufacturers considering the implementation of the innovative C2M model.

Бізнес у воєнний час: особливості оподаткування

The article examines the peculiarities of tax support for business development during the war period. The measures of the State support and stimulation of development of small and medium-sized businesses during the period of hostilities are substantiated. The article identifies the peculiarities of taxation of types of economic activity, which are subject to tax benefits during the period of martial law. It is determined that for this period the government has suspended the State supervision (control) and the State market surveillance, but in order to prevent an uncontrolled increase in prices for products and goods of social importance, such inspections can be carried out. The peculiarities of taxation of enterprises in different sectors of economy are analyzed. The sources of formation of the State Budget of Ukraine in the post-war period are examined, allowing to determine that today most of the budget is formed at the expense of taxes and funds from foreign countries and international organizations. Measures to support industry and business in the post-war are allocated. The importance of promoting the development of the social component of the affected regions by creating the necessary conditions for the return of citizens to such regions is substantiated. The necessity of developing and implementing measures for the post-war recovery of the country’s economy is proved, taking into account the rationality and existing socioeconomic potential of the territories. The regional peculiarities of relocation of small and medium-sized businesses during the period of hostilities are examined. Based on this, the regions in which the largest number of relocated enterprises were situated and the regions from which most enterprises were forced to leave are determined.

System dynamics modeling and robustness analysis for capital-constrained supply chain under disruption

PurposeThe purpose of this study is to explore mitigation measures for cash flow interruption during the epidemic and provide decision support to ensure the regular operation and robustness of the supply chain (SC).Design/methodology/approachConsidering the scenarios of production capacity and demand disruption during the epidemic, the authors adopt system dynamics (SD) to construct a three-echelon SC financial system consisting of a core manufacturer, a capital-constrained retailer and the customer. In different interruption scenarios, through the decision adjustments of stakeholders, the differences in performance are compared to explore solutions for SC robust optimization.FindingsThe results show that partial credit guarantee (PCG) could solve cash flow interruption and maintain the regular operation of the SC. During epidemic, with the product price increases, the revenue of stakeholders and the robustness are generally negatively correlated. But when the manufacturer's production capacity is fully interrupted, increasing product price is the right decision for the retailer and could simultaneously promote performance and robustness.Originality/valueThis paper primarily focuses on the PCG under the cash flow interruption caused by epidemics. The authors adopt the supply chain finance (SCF) theory and SD method to supplement and expand existing research on interruption management of SC. It is a pioneering study to explore the robustness of the SC financial system under disruptions.

INVESTING SAVINGS IN STOCKS DURING WARTIME

The crisis that began in the domestic economy with the beginning of the war in Ukraine showed that not only the economy of Ukraine was not ready for its consequences, but also the entire world economic system as a whole. Yes, almost every country in the world felt the increase in prices for products, electrical resources, etc., and the economy of the United States of America faced the highest level of inflation in the last 40 years. The devaluation of the domestic currency, which could be restrained in the first few months of the war, is now gaining momentum. Therefore, the search for ways to save hryvnia savings of households is quite important and necessary. Thus, in recent years, savings were most often directed to deposit accounts. As long as the deposits provided a return that covered the level of inflation, this type of financial operations could be considered stable and sufficient for keeping money in Ukraine, although it did not give a high return. Since the beginning of military operations in Ukraine, the level of inflation in Ukraine, according to official data, indicates 21.6% per year in 2022. Thus, domestic households are forced to look for other, more effective financial instruments and operations that can offer a higher percentage of return. The article examines the peculiarities of investing household savings in domestic and foreign securities. The most stable and reliable shares of leading corporations, which can ensure the preservation of monetary savings from depreciation, are considered.

Real-life effects of nudging and pricing strategies in the supermarket to promote healthy diets

Abstract Background Unhealthy dietary patterns pose a major public health challenge. Individual-level efforts to promote heathy diets (e.g. nutrition education) have limited effect on the long term. Context-specific interventions focussing on point-of-purchase may create opportunities for sustainable dietary changes. We evaluated real-life effects of nudging and pricing strategies in supermarkets on dietary intake. Methods In this parallel cluster-randomised controlled trial, we randomized 12 Dutch supermarkets in socially deprived neighbourhoods to a control group (n = 6), or intervention group (n = 6). Healthy food nudges were implemented in intervention stores across 13 food groups, combined with healthy product price decreases and unhealthy product price increases. Eligible participants were aged 30-80 years and regular shoppers at participating stores. The primary outcome was dietary guideline adherence measured via an index score (0-150), at baseline and after 3, 6 and 12 months. Secondary outcomes included parameters of cardiometabolic health (HbA1c, lipid profile, and waist circumference), the percentage of healthy food purchases in the supermarket, socio-cognitive factors, and supermarket customer satisfaction. Effects were analysed with linear mixed models. Results This study included 173 participants from intervention clusters and 220 from control clusters. Preliminary evaluation of the 3-month follow-up data revealed no effectiveness of the nudging and pricing strategies compared to the control supermarkets in terms of dietary guideline adherence (β -0.8, 95%CI -4.2; 2.7). Results on all outcomes will be available at time of the conference. Conclusions This novel supermarket trial is the first to evaluate real-life long-term effects of nudging and pricing strategies based on a comprehensive set of study outcomes and using a strong methodological design. Findings can direct future design of context-specific interventions focussing on the promotion of healthy diets. Key messages • Context-specific interventions focussing on point-of-purchase may create opportunities for sustainable dietary changes. • Findings from this supermarket trial testing real-life and long-term effects of nudging and pricing strategies can direct future design of context-specific interventions focussing on healthy diets.

Backfiring: The Low-Discount Boomerang Effect Based on Online Purchases

ABSTRACT Price discounts are not always positively correlated with consumers’ purchases. When purchasing nonessential products, a low discount may reduce consumers’ purchase intentions, resulting in the boomerang effect. Thus, the correlation between the discount rate and purchase volume is displayed as a U-shaped curve. The extant research mainly discusses the internal causes of the boomerang effect in offline purchases but rarely considers the mechanism in online purchases. Using the consumption data of users of the Bestpay platform as our research sample, we explore the conditions generating the online low-discount boomerang effect. Our empirical findings reveal that the low-discount boomerang effect still exists only for nonessential products, but the discount range of the effect is expanded compared with that in the offline channel. Additionally, the effect weakens as the product price increases. The statistical characteristics are not significant after reaching a certain price value. On the basis of these findings, we focus on how to avoid or reasonably use the low-discount boomerang effect in online marketing. Some controllable factors, such as the merchant scale, consumers’ online learning and online product heterogeneity, were shown to affect the interval length of the low-discount boomerang effect. Then we provide solutions to avoid this promotion trap. This study contributes to research concerning low-discount promotions and provides guidance for the development of online marketing strategies.

Conflicting consequences of price-induced product lifetime extension in circular economy: The impact on metals, greenhouse gas, and sales of air conditioners

This study examined the effects of product price increases on metal consumption, greenhouse gas (GHG) emissions, and product sales via changes in the product replacement decisions of consumers. A dynamic discrete choice model was applied to air conditioners (ACs) in Japan to determine these effects when product price is increased by from 5% to 30% in 5% increments. To illustrate, a 5% increase in air conditioners was shown to reduce consumption of iron, copper, and aluminum by six, one, and two thousand tons, respectively, while increasing GHG emissions by 506 kt-CO2 eq. and decreasing product sales by 56 billion Japanese yen. Thus, product price increases for ACs led to a reduction in material consumption while decreasing product sales. The effect on GHG emissions depends on the level of the product price increase. These interactions suggest that consumers will use products longer so long as the value of the product's enhanced durability and longevity matches the increased price of the product. Efforts to improve product durability and longevity, however, will require that AC companies explore new business models in order to cope with the anticipated decrease in product sales as the transition to a circular economy continues.

Profitability analysis of leather tanning industry with capital structure without interest using canvas financial management approach

There were around 330 leather tanning industries in Garut in 2011. Currently, there are only 220 tanning industries left. Contrarily, in 2011 credit facility users from the tanneries were only 15% then increased to 95% in 2019. Loans with an interest system will incur new costs that can cause price increases or reduce incomes, this is what is thought to be the cause of the reduced number of the leather tanning industry. This study aims to calculate the impact of credit on the price and profitability of the leather tanning industry in Sukaregang, Garut. Capital structure is the ratio between external capital and internal capital. This study uses the Financial Management Canvas approach to overcome the analysis complexity because in general SMEs do not have adequate financial reports. The results showed that changes in the capital structure causes unbalanced in the income statement. An increase in product price is performed to obtain a balanced income statement. Another way is by reducing the profits to pay the loan interest. The existence of external funds in the form of loans with an interest system causes an increase in selling prices and or reduces profitability.

Necessary conditions for coordination of dual-channel closed-loop supply chain

In order to eliminate profit loss caused by decentralized decision-making in closed-loop supply chain systems, this paper adopts the method of optimization analysis and game theory to analyze the necessary conditions for manufacturers, retailers and third-party online recyclers to achieve interest coordination under equilibrium conditions. In addition, the robustness of the results is verified by numerical analysis. The results show that in order to make the total profit of decentralized decision-making equivalent to that of centralized decision-making, the recycling cost of retailers and third-party recyclers must be the same; new products must be shipped at zero profit, re-manufactured products shall be sold at the difference between the residual value of the recovered product and the cost of recovery, and the manufacturer's recycling price shall be determined by the cost of recycling and residual value. It implies that multi-channel recycling must be carried out under the premise of uniform recycling costs. At the same time as the elimination of the product price increase, the manufacturer's income must be guaranteed through agreements and other forms. The government can realize the recovery price in the direction of benefiting consumers by improving the residual value of used products and easing channel competition.

Competition, land prices and city size

Abstract Larger cities typically give rise to two opposite effects: tougher competition among firms and higher production costs. Using an urban model with substitutability of production factors and pro-competitive effects, I study product market responses to an increase in city population, land-use regulations and commuting costs. I show that those responses depend on the land intensity in production. If the input share of land is low, a larger city attracts more firms setting lower prices, whereas for an intermediate land share, city expansion increases both the mass of firms and product prices. For a high land share, the mass of firms decreases with city size while product price increases. Softer land-use regulations and/or lower commuting costs reinforce pro-competitive effects, making city residents better-off via lower product prices and broader diversity.

Influence of petroleum and gas trade on EU economies from the reduced Google matrix analysis of UN COMTRADE data

Using the United Nations COMTRADE database (United Nations Commodity Trade Statistics Database, http://comtrade.un.org/db/ (accessed January 2019)) we apply the reduced Google matrix (REGOMAX) algorithm to analyze the multiproduct world trade in years 2004–2016. Our approach allows determining the trade balance sensitivity of a group of countries to a specific product price increase from a specific exporting country taking into account all direct and indirect trade pathways via all world countries exchanging 61 UN COMTRADE identified trade products. On the basis of this approach we present the influence of trade in petroleum and gas products from Russia, USA, Saudi Arabia and Norway determining the sensitivity of each EU country. We show that the REGOMAX approach provides a new and more detailed analysis of trade influence propagation comparing to the usual approach based on export and import flows.

THE STATE OF THE EGG MARKET IN UKRAINE AND OBSTACLES TO ITS EFFECTIVE DEVELOPMENT

The importance of consuming eggs for humans is beyond doubt. The micronutrients necessary for the human body in this product provide a steady demand for this product. The consumption of eggs in Ukraine per capita is about 300 pcs per person per year. Egg poultry farming in Ukraine is characterized by development and concentration in large agricultural enterprises and agro holdings, which have created technologically new, equipped with modern machinery and equipment of poultry farms. Together with the favorable preconditions and the general development of the industry, the egg market demonstrates high volatility of the value of production, complicated the formation of long-term export links, uncertainty of the future development strategy. In the last decade, the poultry industry has shown strong growth, characterized by consolidation and integration of enterprises, an increase in the number of poultry and an increase in production volumes. Obstacles to the development of industrial egg poultry farming are the crisis and transformational phenomena that are currently taking place in the Ukrainian economy. Due to the unfavorable economic situation there is a significant reduction in the production of eggs. Obviously, an important factor in making a profit from the production of chicken eggs is the price of their sale. This is - difficult-predicted value, which within a year is characterized by considerable volatility. The volatility of egg selling prices is affected by a variety of factors: from macroeconomic factors such as market conditions, export policies, to the pricing policy of giant companies (Avangard, Ovostar, etc.), the concentration and integration of production which creates additional opportunities to reduce the cost of production, and hence a decrease in the selling price during peak periods of egg collection, which is also observed in our state. The price policy on the egg market was negatively influenced by the devaluation of the hryvnia, which had a corresponding effect on its volatility in 2017. Currently, one of the promising markets for Ukrainian egg producers is the European Union, so it's worth paying attention to the development of export activity. Ukraine has an appropriate quota for export of chicken eggs in the quantity of 3 thousand tons and for egg products - 1,5 thousand tons. This fact motivates domestic producers to modernize production and introduce higher standards of product quality. Impediments to the development of Ukrainian egg exports were introduced in 2017 in foreign countries customs restrictions on the import of Ukrainian poultry products. Because of the decline in world egg prices over the last year, the domestic market for egg producers is more attractive than international ones. The study of the egg market in Ukraine and the obstacles to its development indicates that in order to ensure the competitiveness and efficiency of egg poultry farming functioning, it is necessary to pay attention to the development of a strategy for "outbreak", the purpose of which is to identify negative trends in the market and adjust its own industrial policy of the enterprise in the required direction. In addition, the decline in profitability of the industry and the growth of enterprise costs cannot be offset by the increase in prices for products. Population, suffering from rising prices for tariffs and services and reducing their own purchasing power, is likely to reduce egg consumption, which will lead to even more threatening consequences for the egg sector. Attention should be paid to the development and implementation of an innovation and modernization mechanism that will improve the feed base and technologies of poultry farming, improve logistics, organization of personnel management, etc. The monopolistic position of individual enterprises in the industry will not ensure its development and indicates the need for state and local support

Estimation of profitability of operating activity in industrial enterprises of Ukraine in the conditions of external environmental

The article analyses the specifics of the functioning of industrial enterprises and examines the problems of growth of profitability in modern economic conditions. The important role of industry for the development of the state economy has been determined. The level of the unprofitableness of industrial enterprises, expenses of operational activity has been analysed. For a more informative idea of ​​the current state of operational activity of industrial enterprises in Ukraine, an analysis of operational profitability indicators for a certain period has been conducted. To determine the reasons for changes in profitability and the identification of factors of influence, a factor analysis of the profitability of production has been conducted on an example of JSC “Motor Sich.” The results of the analysis have been grouped by factors of influence on the level of profitability of operating activities of industrial enterprises. The main factors of influence include: low competitiveness of enterprises; deterioration in the quality of industrial products; wear of equipment; high level of tax pressure; high lending rates; increase in the cost price of products and decrease sales volumes; shortage of working capital and fixed assets; change in the share of profit for 1 hryvnia of sold products. It has been determined that decrease of profitability of operational activity of mechanical engineering enterprises is caused by a number of reasons: absence of investment capital; mismatch of production capacities of market potential and low level of their loading; rise in price of external financial resources; decrease in demand for products; the unity of the production process; failures in the supply of raw materials and materials; lack of financial support; ineffectiveness of the marketing department; rise in price of external financial resources. It has been determined that the decrease of operating profitability indicators of the enterprises of mechanical engineering of Zaporizhzhia region is due to: loss of market sales; high material production of machine building products; depreciation of fixed assets; decrease in the level of solvency of commodity producers; decrease of output; reduction of domestic demand for domestic products; an increase in the level of debt; unsecured high-quality materials. According to the results of the research of indicators of profitability of operational activity of enterprises of the industrial sector, ways of increasing the analysed indicators have been formed: withdrawal from production of low-profitable products; concentration of production on highly profitable products; revision of tax rates for industrial enterprises; attraction of foreign investors; reconstruction of material and technical base of production and introduction of new technologies; introduction of effective financial management.

Actual problems of formation priority directions of state regulation in agriculture

The problems of agriculture state regulation in Ukraine are analyzed. The Approaches to the implementation of state regulatory influence on economic entities, including extreme positions – from non-interference policy to strengthening direct administrative influence on economic entities are compared. The neglect of the need for state influence on economic processes, the use of «shock therapy» in the hope that all problems will be solved by market leverage, which operate automatically in the first half of 90 years of the last century, only exacerbated these problems. Due to the significant number of influencing factors the direction of the state regulatory policy, universal approaches to its development and implementation can not be offered. Therefore, it is unacceptable to use borrowed in foreign publications schemes of state regulation. The international obligations of Ukraine in the process of gaining membership in the WTO and concluding an agreement on the association of Ukraine with the EU can not be the arguments of such application. These agreements regulate only the obligations regarding integration processes, and internal problems are solved by the development of an acceptable regulatory policy. Taking into account the fact that the regulatory influence on economic entities has levers of the market mechanism, in particular the price, the state influence of the agricultural management bodies is proposed to direct the formation of the infrastructure of the agrarian market, the main function of which is market generation of prices and their stabilization. All the ways of state regulation prices of agricultural products that were used in Ukraine after 1991 were unsuccessful. The indexation prices was offset by the increase in the cost price of products in the conditions of high inflation, the neutralization of the negative influence of inflationary processes was completely neutralized, but it increased the burden on the state budget and weakened the implementation of the prices of regulatory and stimulating functions. Limitations on the level of profitability to calculate the mass of profit included in the price, limited monopoly influence on the price of certain structures, provided access to socially significant food products. However, the continued limitation of profitability prompted an increase in current costs, as well as a reduction in production volumes, its deficit and the subsequent rapid rise in prices. Acceptable is the direct state support of the formation and development integrated formations, in which prices are agreed without government intervention and products are competitive on the domestic and foreign markets.