Milk-product subcomplex of Ukraine: trends of development

Abstract

Background. The dairy product sub complex is one of the components of the agro industrial complex, which includes a set of enterprises of agricultural and industrial production, which concentrate on the production, processing and marketing of dairy products. In the structure of income from the sale of livestock-raising products in Ukraine, the share of sales of milk is about 26 %. Therefore, it is expedient to analyze the trends of production, processing and marketing of dairy products in order to determine the future vector of development of the dairy product sub complex of Ukraine.
Analysis of recent research and publications showed that despite the existence of certain scientific achievements, the important scientific and practical problem of the development of the milk and dairy products market in the national economy remains unresolved in the context of globalization tendencies.
The aim of the article is a retrospective analysis of the state of the sub complex of dairy production in Ukraine during 2008–2017, identification of its main trends and the vector for further development.
Material and methods. Scientific abstraction, statistical and system analysis, generalization, comparison, etc. The official database of the study was the official statistical reporting of the State Statistics Service of Ukraine and the Ministry of Economic Development and Trade of Ukraine, data of international organizations, as well as scientific sources.
Results. The state of the dairy industry in Ukraine in 2008–2017 was investigated. The dynamics of production of milk and dairy products of all species, dynamics of cattle population and the state of production and consumption of dairy products for ten years in Ukraine were analyzed, certain patterns and tendencies were revealed based on the results of which the suitable conclusions and generalizations. The role and importance of the government in stimulating the development of the dairy product sub complex of Ukraine has been characterized. The vision of world experts on the development of the domestic dairy market is presented. The directions of development of the domestic dairy product sub complex of agro industrial complex are determined.
Conclusion. Realization of Ukraine's potential on entering new markets is possible only in the case of application of the latest technologies and knowledge of the creation of added value in the process of milk processing. Ukraine has every opportunity to meet the rapidly growing global demand, while at the same time it is important to strengthen its position on the domestic market by improving logistics, developing farms and further implementing government programs to stimulate the development of the dairy product sub complex of Ukrainian agro-industrial complex, and so on. In this context, there are some changes. In particular, the intensification and consolidation of dairy farms of Ukraine in terms of the number of livestock, which reduces average costs per unit of products, increases and builds up productivity, as well as introducing modern technological and managerial solutions.
Based on the analysis, we see two scenarios for the development of the Ukrainian dairy product complex. The first is extensive development with the loss of the title of net exporter and the market as a whole. The second, with the active support and assistance of the government in solving the issues of quality of raw materials and production of value added products, the use of innovative milk production and processing technologies, which in turn can make Ukraine a powerful player in the world market.