Abstract

Restoration of livestock industries is important both for the functioning of the national food market and for improving Ukraine’s position in the global agri-food market. Because products of animal origin, in contrast to products of plant origin, can be sold on the foreign market only in processed form. That is, it by definition has a relatively higher share of value added, and therefore it is more profitable to trade. First of all, this applies to dairy products. After all, if for export of meat products primary processing for its sale in the form of carcasses for half-carcasses is enough, then for sale for export of dairy products there should be a full technological cycle – from production of agricultural raw materials to production of industrial semi-finished products (milk powder, whey, casein). etc.) and ready-to-eat products (pasteurized milk, fermented milk products, whole milk products, etc.). Thus, such products have a relatively high share of value added, and therefore provides the best price. Therefore, stopping the decline in the domestic dairy subcomplex, increasing production that meets international safety and quality standards, and expanding the presence of Ukrainian dairy products on the world market is an important management task, the solution of which, among other things, requires in-depth scientific study. The purpose of this article is research of the state of dairy production in Ukraine and determination of its place on the world market in the conditions of openness of the national economy. The article examines the state of domestic milk production and processing, and the dynamics of dairy exports. The ongoing decline in dairy production is indicated, which is accompanied by a deterioration in the quality of livestock raw materials. There is a reasonable assumption that the main reasons for the decline in industrial dairy production and the reduction of Ukraine’s share in the relevant world market are: reduction of raw milk production, loss of markets of the Customs Union, problems with entering the EU market due to predominant non-compliance with domestic safety standards and quality. Ukraine reduced its share in the world dairy market: in the butter segment from 7.32% (1992) to 2.08% (2019), in the cheese segment from 5.73% (2005) to 0.23% (2019), in the segment of skimmed milk powder from 1.03% (2005) to 0.17% (2019), in the segment of skimmed milk powder from 5.23% (1995) to 0.84%), in the segment of dry whey from 1.72% (2011) to 1.62% (2019). According to the OECD-FAO forecast, the negative trend will continue at least until 2029. The main reasons for the reduction of the share of Ukrainian dairy producers in the world market were the reduction of milk production, loss of markets in the Customs Union and problems with entering the EU market due to the predominant non-compliance of domestic livestock products with international safety and quality standards.

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