InBridge Consulting Company conducted a market study of meat products by building a multi-factor model of meat and other meat products consumption in Ukraine over the period 2002-2018, based on statistics.
The main purpose of building a multifactorial model was to identify factors, that determine the level of consumption of meat products per person in Ukraine.
To construct a multifactor model, the following probable set of factors are selected:
Y1 - consumption of meat products per person, kg / year;
X1 - production, thousand tons / year;
X2 - import, thousand tons / year;
X3 - export, thousand tons / year;
X4 - share of food costs, percent;
X5 - consumer price index for food products;
X6 - average annual temperature in Ukraine, degrees Celsius;
X7 - population, number of people.
The balance of meat products in Ukraine for the period 2002 - 2018 has been compiled to reliably build the model.
Mathematical software complexes establish a close relationship only between the consumption of meat products per person (Y1) and its production (X1) and the share of food costs in the total cost of person (X4) as the following equation:
Y1 = 87.68 + 0.01 * X1 - 1.17 * X4
Therefore, according to the model, the level of consumption of meat products in Ukraine for the years 2002 - 2018 is closely linked to the production of meat products (each additional 1 thousand tons of meat production increases its consumption per person by 0.01 kilograms) and the share of food costs in the total human costs (with an increase in the share of food costs by 1 percent, the person reduces the consumption of meat products by 1.17 kilograms respectively).
The next stage of the research was to analyze the identified components of the model under construction, namely: the share of food costs in total human costs and the volume of meat products by certain types.
The following probable set of factors are selected to construct a model of factors, that influence the share of food in total aggregate costs:
Y2 - consumer aggregate consumption (Food), %;
X8 - consumer's total consumption (alcoholic beverages, tobacco), %;
X9 - consumer aggregate costs (Non-food products and services), %;
X10 - non-consumer total expenses, %.
By analyzing statistical information in Ukraine over the years 2002-2018, there is a close relationship only between the portion of food expenditure in total human consumption (Y2) and the portion of consumer total expenditure on alcoholic beverages and tobacco (X8) and non-food and services (X9) in the following relationship:
Y2 = 90.59 - 0.21 * X8 - 1.05 * X9
That is, the most negative impact on the part of food in the total expenditure of the individual is the increase in the portion of non-food products and services. Thus, with a 1 percent increase in the portion of non-food products and services, the portion of food is reduced by 1.05 percent. The impact of an increase in the part of alcoholic beverages and tobacco, in turn, is minimal. By increasing the proportion of alcoholic beverages by 1 percent, the portion of food consumption is reduced by only 0.21 percent.
To construct a model of factors, that affect the volume of meat products by types, the following probable set of factors is selected for the volume of meat production (thousand tons):
Y3 - total, meat;
X11 - beef and veal;
X12 - pork;
X13 - poultry meat;
X14 - other types of meat.
Analyzing the statistical information in Ukraine for the years 2002-2018, the relationship between the production of meat products (Y3) and the production of pork (X12) and poultry meat (X13) is as follows:
Y3 = 725.22 + 1.11 * X12 + 0.67 * X13
That is, the overall meat production in Ukraine was positively affected by the production of pork and poultry. The level of influence is reflected in the above dependence.
Conclusion. Only the constructive pragmatic approach for doing business is the Company's main competitive advantage, its main tool for improving business efficiency and ensuring social responsibility.