Formation and development of the agricultural machinery market in Ukraine

Annotation Purpose. To reveal the shortcomings of the formation of the market of agricultural machinery and their impact on the economy of Ukraine. Methods. Monographic, analytical, economic-mathematical, statistical. Results. It is established that the introduction of “free prices” in Ukraine led to a violation of the principle of equivalence of exchange between industrial and agricultural products, became the main reason for the loss of effective demand of agricultural enterprises for material and technical resources, the decline of domestic engineering and, as a result, led to the monopolization of the agricultural machinery market foreign firms. The main reason for the dominance of imported agricultural machinery in the domestic market of Ukraine was the low level of competitiveness of domestic counterparts, the lack of state regulatory policy and experience in the market environment. The main actions of the bodies of state management of economic development of Ukraine, the implementation of which will contribute to the revival and development of domestic engineering for agriculture and strengthening its position in the domestic market of agricultural machinery. Conclusions. The lack of state regulation of the domestic market of agricultural machinery has led to the loss of domestic engineering for Ukraine’s agro-industrial complex, the dependence of the agricultural sector of Ukraine’s economy on foreign firms, job losses in industry and reduced revenues to the state budget and social funds. To revive the industry and increase sales of agricultural machinery of domestic production in domestic and foreign markets it is necessary: • to provide favorable conditions for the creation of joint ventures with leading foreign companies for the production in Ukraine of competitive agricultural machinery with a gradual increase in its design share of components of domestic production; • to provide state support to the priority areas of development of domestic mechanical engineering for the agro-industrial complex; • to provide preferences for equipment of domestic production in the domestic market and to stimulate its export. Keywords: market, agricultural machinery, government regulation, protectionism, competition, free price.