FUNCTIONING OF THE MILK MARKET: THE EXPERIENCE OF UKRAINE AS A CANDIDATE FOR MEMBERSHIP OF THE EUROPEAN UNION

Abstract

An analysis of dynamic changes in the number of cows, gross milk production, its balance and export by various products was carried out. It was established that in the absence of consistency of relations in the food chain "production-processing-sale" in Ukraine, the number of cows decreased at the highest annual rates in the world, as a result of which a shortage of raw milk appeared in recent years. At the same time, there was a reduction in the number of dairies with capacity utilization up to 60%. Under such circumstances, they were forced to increase the volume of raw milk imports from European countries. The main direction of solving these problems is the establishment of equilibrium prices in the food chain with the help of the "input-output" model of the dairy sub-complex developed by us earlier. The article substantiates that the application of such a model in the dairy sub-complex as its main module, ensuring compliance with economic, ecological and social criteria, will contribute to the theoretical solution of the problem of harmonizing relations between all participants of integrated production, since this industry should be recognized as a complex system that requires serious scientific approaches to its research. The development of other modules of the system of this complex involves the involvement of specialists in land management, land use, ecology, animal feeding, production and processing technologies, mathematics, etc., as well as business representatives as consultants on forecasting the prospects of competition in the world market of dairy products, since only coordinated comprehensive work of specialists in of ecological and economic problems is able to solve the difficult task of creating a competitive dairy sub-complex of Ukraine. Calculations made with the help of this model indicate the priority of investments in the modernization of dairies with a corresponding further increase in the level of depth of processing, which will lead to a decrease in the cost price of the final products of the factories and the identification of significant reserves for the increase in raw milk prices for primary producers.