Development of the market of milk and dairy products in Ukraine

Volodymyr Rossokha and Oleksandr Petrychenko

Ekonomika, Journal for Economic Theory and Practice and Social Issues, 2018, vol. 25, issue 8

Abstract: The purpose of the article is to comprehensively analyze the raw material market in the chain of milk supply to processing enterprises, production and distribution of dairy product through the sales channels, as well as challenges and opportunities for ensuring rational needs and level of consumption of milk and dairy products by people. Research methods. In the research process the following scientific methods have been used: analysis and synthesis for determining a volume of supply of raw materials to dairy processing enterprises, depth of milk processing and range of dairy production in context of the science-based standards for domestic consumption per capita and exports; correlation and regression analysis for a substantiation of dependence of the level of milk consumption on production volumes in the dynamics of different time periods; grouping of the aggregate household income for determination of an impact of the purchasing power of different sectors of the population on level of milk consumption in the domestic market; calculation method for assessment of the coefficient of elasticity of demand for milk and dairy products depending on the aggregate household income using regression equations. Research results. Analysis of market dynamics in the segments of production, processing, distribution and consumption of milk and dairy products in Ukraine has shown discrepancy of raw material supply in the market for loading the capacity of milk processing enterprises, which causes a decrease in dairy production below the level of rational consumption norms. Ratio of production volumes of the basic dairy products for exports and imports has been established. Directions, structure and share of export of domestic dairy products in the dynamics of the regions of the world market have been outlined. Share of households with the highest income and the level of consumption of milk and dairy products in large and small towns and villages have been determined. Dependence of elasticity of demand for milk and dairy products on the level of household incomes has been established. Elements of scientific novelty. Inconsistency between the production of milk raw materials and possibilities of processing enterprises, level and norms of consumption of milk and dairy products by the population has been justified. It has been determined the dynamics of production, export and import of basic dairy products. Level of links between production and consumption of milk depending on the elasticity of demand and consumption of milk and dairy products on the level of income has been established. Practical significance. Tendencies of development of the market of milk and dairy products that have been studied serve as a guide for decision-making on ways for increasing the level of production and processing of milk, domestic consumption of milk and dairy products, as well as export potential of the dairy industry. Tabl.: 8. Figs.: 1. Refs.: 10.

Keywords: Supply; Chain (search for similar items in EconPapers)
Date: 2018
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Persistent link: https://EconPapers.repec.org/RePEc:ags:sereko:411565

DOI: 10.22004/ag.econ.411565

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