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Hello, I am Vitalii Radko. Im from Ukraine.

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I am Associate professor of department of
entrepreneurship and agrobusiness organization

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of National University of Life and environmental
Sciences of Ukraine.

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I would like to talk about production and
supply rights.

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Production and supply rights exist in marketable
crops production e.g. in form of sugar beets

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quotas (production of sugar beets).

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As for example in 1999 the government set
up the rules, which regulate domestic price

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and the minimum prices of sugar beets and
they have invented quota A, B and C.

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In 2008 Ukraine has made changes in sugar
beet market, where the government has deregulated

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the market which means the quota A and B were
canceled.

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In regarding the winter wheat production there
are no supply rights and regulation in Ukraine.

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The calculation of the costs is based in practice
usually only on the imputed costs for land.

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It is often difficult to quantify fixed costs
(depreciations) here, since the change of

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the value beyond the period of use is hard
to measure.