Development of dairy productions in the regions of Ukraine: raw material aspect

Abstract

The production of milk and dairy products is a significant segment of the domestic food industry with a share of 14% in its structure. During 2014-2019, the volume of dairy production in Ukraine decreased by 15.68%, which caused the loss of 5 positions in the world ranking by this indicator. The purpose of the article is to determine the development potential of dairy production in Ukraine in the regional context based on the raw material supply. According to the results of the research, higher efficiency of agricultural enterprises (the share of which in the structure of raw milk production in Ukraine was less than 30%) as compared to households was found. Comparative estimates show that the regional structure of dairy products is more geographically concentrated than the structure of raw milk production. According to the results of grouping of regions of Ukraine by the volume of production of raw milk and its industrial processing products, only four regions had high complex potential in this segment in 2019, two – milk processing potential, six – raw milk potential, while the potential of the remaining 12 regions was insignificant. The transformation of commodity and geographic structures of export-import operations with dairy products in Ukraine was investigated. The main problems of the dairy processing segment of the domestic food industry were identified, namely: insufficient potential and poor quality of the raw material base for industrial dairy processing; interaction imbalance between suppliers of raw milk and industrial producers; the presence of a shadow segment and a high degree of falsification in the domestic dairy market; etc. A number of mechanisms were proposed to further enhance the dairy sector development in Ukraine. The basic directions of state support for agricultural enterprises producing raw milk and industrial enterprises producing dairy products were outlined.