Сompetition state estimation at the marketof fat-and-oil production of Ukraine

Abstract

Introduction. The active state of competition environment is determined by the counter-force of competitors to draw customers. Indicators determination that characterize the state of competition at the market give an opportunity for market players to make good decisions for all participants.

Purpose. The article aims to determine the state of competition at the fat-and-oil production market of Ukraine according to the given approaches with the use of “large numbers law” and formulation of recommendations of further industry development.

Method (methodology). The general scientific and empirical methods of scientific research have been used in this article. They are the system method, method of generalization and description.

Results. In order to estimate the competitive situation of fat-and-oil market in Ukraine the market share of competitors has been determined. The market concentration index, four-particle index of concentration, Herfindahl-Hirschman Index and Rosenbluet Index have been calculated. During the research of competitive indicators, it has been determined the necessity to apply “large numbers law” for defining the shares of large number of small enterprises in the market, without losing accuracy and correct calculations of competitive indicators.

Investigation of competition indicators of fat-and-oil products in Ukraine in 2016-2017 showed the market had not been monopolized. Its main characteristics are low concentration and high intensity of competition. This situation meets interests of all participants of the market and needs the same support in future.