Study of the current conditions and prospects of dairy production development in Ukraine

Abstract

Analysis of marketing information conforms that the branch of milk production is of great importance in support of human balanced diet. Nowadays, Ukraine is a great producer of milk and takes the tenth position in the world rating of the largest producer countries. The aim of the article is to study peculiarities of development of the branch of dairy production in Ukraine under current conditions and in the future. To achieve the set goal, the authors of the work used the methods of comparison, statistical and system analysis, and forecasting based on trends. Basing on the analysis of secondary information it is argued that considerable reduction of milk production in Ukraine has lately caused reduction of the output of some kinds of dairy products. To estimate impact of the level of milk consumption and consumer price index on milk production in Ukraine, the authors of the research have developed a double-factor econometric model. According to the results of econometric modeling, it is determined that growth of consumption of milk and dairy products per 1 person in Ukraine by 1 % will cause increase of the output of milk by 1.327 %, while increase of the index of consumer prices for food products and soft drinks by 1 % will cause reduction of milk output by 0.255 %. A negative effect on development of the dairy market is done by deficiency of raw material and its low quality. It is determined that, according to expert estimates, Ukraine has great prospects in the field of dairy products export, and it is expected that until 2030, the world demand for dairy products will grow and it will be hardly satisfied by the principal countries, exporting those products. However, to increase export of their products, milk-processing enterprises of Ukraine should sufficiently improve parameters of dairy products quality. It is studied that growth of export of dairy products can result in deficiency of those products at the domestic market, because a considerable reduction of milk production in Ukraine has recently caused reduction of the output of some kinds of dairy products. Analysis of the market of dairy products also confirms that it experiences a severe competition and producers should actively introduce innovations in their marketing activity to be competitive. According to the research results, milk-processing enterprises can get competitive advantage due to introduction of advanced technologies, supply of new products at the market, production of organic products, opportunity of re-use of packaging, intensification of flexible pricing, expansion of the area of sale and attraction of new intermediaries, formation of consumers’ loyalty to the brand, choice of trade agents with the good image.