Contract Of Contracting Of Agricultural Products By State Order

  • I.Ya. Kostiv
Keywords: contracting, agricultural products, public procurement, contract.


The article is devoted to the study of the contract of contracting by state order from the emergence of the term «contracting» to the present day. Particular attention is paid to modern legal regulation of the purchase of agricultural products by state order.

Historically, the contract for the contracting of agricultural products was created to ensure food security of the state. Since the formation of this agreement, the state has been the sole procurer. Only with the transition of independent Ukraine to market relations, producers were able to freely choose contractors, and the state lost the role of sole contractor. At the present stage of relations on the sale of agricultural products, the contract of contracting in favor of the state has lost its meaning due to the legislative imposition of restrictions on public procurement.

The purchase of agricultural products for government needs under the contract of contracting has significant advantages over stock procurement. In particular, the contracting agreement provides for a tripartite model, where the manufacturer transfers the products grown (produced) by him to the recipient specified by the procurer. Thus, the Agrarian Fund, as a procurer, can determine the recipient of certain processing plants that will form state stocks of ready-to-eat products. Also, a producer can only be an economic entity that directly grows (produces) agricultural products.

As a result, the state support that will be provided in connection with the performance of the contract will be used directly by the manufacturer. The contract model provides for the direct purchase of products from its manufacturer, and excludes the participation of intermediary structures, which are mostly on the market, including exchange agricultural market, as owners of products.