The current situation in the dairy sector of Ukraine has become threatening to the economic security of the state. During the years of independence there was a significant reduction in the number of dairy herds (from 8.5 million to 1.7 million), the production structure of dairy cattle changed from mainly large-scale production (where 74% of cows were kept in agricultural enterprises in 1990) to small-scale one (when now 75% of cows are kept in households). Due to the systematic reduction of the dairy herd and the reduction of its own full-fledged fodder base because of the reorientation of the agricultural sector to more marginal crops, the gross production of raw milk and its receipt for industrial processing is reduced. On average, milk production in Ukraine decreases annually by 1.5%.
 The purpose of the article is to form scientific and methodological approaches to the profitable use of genetic resources of dairy farming in Ukraine in modern conditions. Research methods: general scientific (analysis, synthesis, classification), content analysis of scientific sources and legal documents, statistical, economic and mathematical.
 Research results. The situation in the industry is currently showing signs of a systemic crisis, when negative phenomena have spread to all levels of economic activity. Therefore, there is a need for a comprehensive analysis of the current state of the industry to identify factors and reserves to increase the profitability of the use of genetic resources of dairy farming, which is proposed to be carried out in stages: 1) economic assessment of the effectiveness of the dairy industry at the macro level of economic activity (in the country, region); 2) at the meso level (by breed of genetic resources of livestock); 3) at the micro level (in economic entities (agricultural enterprise, peasant (farmer) economy, personal economy)).
 The use of genetic resources of dairy farming can be considered profitable when all the above parameters of efficiency are achieved at the macro-, meso- and micro-levels of economic activity. This comprehensive approach makes it possible to draw conclusions about the achievement of individual targets (production, economic, social, environmental, etc.) and the prerequisites for ensuring the sustainability of the dairy industry as a whole.
 Ensuring the sustainability of the industry as a production system requires a focus on key areas: management system, breeding work, technology of maintenance and feeding. The introduction of the achievements of modern selection science is especially noticeable in the system of measures to ensure profitable livestock farming. It is the parameters that describe the stable properties of the animal, characterize the genetically determined resource potential, which has a decisive influence on the implementation of all other types of resources involved in production (land, labor, intelligence, capital) and the degree of their payback. Therefore, an important area of state support for the profitability of the use of genetic resources of dairy farming should be the financial support of the national breeding system.
 Growth of milk production in a short time can be achieved in the largesale sector by increasing the number of dairy cows of specialized breeds with high genetic productivity potential, which is positive in terms of modern intensive technologies, economic efficiency, attractive investment.
 Conclusions. Ensuring the sustainable development of the industry in condition of livestock reduction requires a comprehensive analysis of its current state, which must be conducted at all levels of economic activity to identify factors and reserves to increase the profitability of the use of genetic resources of dairy cattle. The criteria for the effectiveness of the development of the dairy industry is the achievement of both individual parameters (production, economic, social, environmental, etc.) and its stability as a whole.
 In the system of measures to ensure the profitable use of genetic resources of dairy farming is important to implement the achievements of modern breeding science. This parameters that describe the stable properties of the animal, characterize the genetically determined resource potential, which has a decisive influence on the implementation of all other types of resources involved in production (land, labor, intelligence, capital) and the degree of their payback. Therefore, an important area of state support for the profitability of the use of genetic resources of dairy farming should be the financial support of the national selection system.