DETERMINATION OF THE FOREIGN ECONOMIC POTENTIAL OF UKRAINIAN WINE INDUSTRY IN THE WORLD MARKET
Authors: FEDOROVA N.Ye. , TARAN I. O. 
Published: September 2019

Topicality. Ukrainian export strategy for 2017-2021 determines food industry as one of the key elements of the country's foreign economic potential. Despite the secondary importance of wine in meeting the basic human needs, wine industry plays an important role in filling the budget of the country, ensuring the socio-economic development of regions. The wine sector is a perspective direction for the development of Ukrainian economy, an integral part of its foreign economic potential because of favourable natural and climatic conditions and existence of labour and other resources of high quality.Aim and tasks. The purpose of the article is to determine the foreign economic potential of Ukrainian wine industry in the world market. To achieve the goal, following tasks have been set and solved: definition of production potential of Ukrainian wine industry; assessment of consumer potential of Ukrainian wine market; study of trends of export-import activity of market operators (volumes of export, import, foreign trade turnover, balance of export and import operations, geographic structure of export and import).Research results. According to the research results of Ukrainian wine industry in 2014-2018, it is established that the production potential of Ukrainian wine market is decreasing. This can be explained by the decrease in the area of grape plantations in the fructiferous age, the declining dynamics of the index of industrial products, the growth of depreciation, the decrease in the average number of staff members, as well as the decline in consumer market potential (due to a decrease in the number of target consumer segment, in the share of spending on alcoholic beverages and tobacco products, the growth of average consumer prices, the prohibition of the promotion of wine etc.).According to the export-import activity in monetary terms Ukraine is a net importer of grape wines. However, in terms of volume, the volumes of wine exports are dominated by imports. Such contradictions in data in both physical and monetary terms can be explained by the low cost of Ukrainian exports. The average price of 1 litre of exported Ukrainian wine in 2018 is 3.5 times lower than the cost of 1 litre of imported one. The geographic structure of demand for Ukrainian wines varies: the share of CIS countries and Europe is decreasing and the share of Asian countries is increasing. The largest buyers of Ukrainian wine are: Russian Federation, Georgia, Azerbaijan, Kazakhstan, and China. The geography of the import of grape wines has the opposite structure: a significant proportion is being taken by the European countries, the smallest – by the “new wine regions”: America, Africa and Australia and Oceania.Conclusion. The analysis of the indicators of functioning of Ukrainian wine industry shows that at present, it can not claim the position of an influential player in the market. There is a significant natural and climatic potential, but there is a number of problems that hinder the development of foreign economic potential. These problems are: problems related to the political and legal environment; problems of production potential; problems of consumer potential; foreign trade problems; retail problems.