Economic aspects of efficient milk production in Ukraine

Abstract

The article considers the issues of increasing the efficiency of dairy production in agricultural enterprises and households. The main stages and their features in dairy farming development of the country and their impact on the efficiency of milk production in agricultural enterprises and households were highlighted. The reasons which cause decrease of cow livestock in both agricultural enterprises and households were identified. The inhibitory factors in the development of dairy cattle breeding were identified and the directions of its revival were outlined. It was substantiated that considering the current state and trends of dairy farming in Ukraine, its efficiency, government support measures should be aimed at increasing production mainly in farms of the corporate sector of the agricultural economy, which in the nearest future will become major producers of raw milk. It was determined that without the introduction of an effective system of government support for milk producers, which firstly will include the restoration of the special VAT regime, financing of dairy breeding revival at the state and regional level, it is impossible to have positive changes in increasing cows amount and increasing production efficiency, in addition the population of cows will continue to fall in the households. It is proved that today the system of breeding service, which was previously in Ukraine and allowed to conduct breeding at the appropriate level, is destroyed and does not work. It was concluded that further productivity growth and reproduction of animal’s livestock is extremely problematic due to the lack of a modern selection system in animal husbandry. It was established that the current level of profitability allows to ensure only simple reproduction in independent agricultural enterprises, mostly small and medium.It is true that in this situation, most farms in the corporate sector of the agricultural economy are trying to become part of vertically integrated structures of preserving and expanding their production activities on a qualitatively new material and technical base in the future.It was proved that the innovative type of dairy cattle breeding development will ensure the profitability of production and, accordingly, the growth of the income level of rural residents who are the employees of an agricultural enterprise. Measures of state and regional support of milk production in Ukraine were offered. Key words: dairy cattle breeding, agricultural enterprises, households, government support, milk processing plant.