The main characteristics of world primary agricultural commodity market

Abstract

During the study, we put emphasis on basic characteristics and world primary agricultural commodity market ways of functioning. This market is different in many elements from the markets of other goods and these differences primarily include: supply and demand characteristics for agricultural products, high volatility in agricultural commodity prices, high and significant government role, as well as high market concentration and vertically integrated food chains. All of these specifics are specially processed and the emphasis is put on developing and transition countries, which, due to world agricultural market specifics, have inferior and very vulnerable position in relation to developed countries.