ACTUAL PROBLEMS AND PROSPECTS OF MILK MARKET DEVELOPMENT

Abstract

The article is devoted to the problems of formation and development the milk market. The purpose of the article is to substantiate acceptable organizational forms of milk production and state economic policy aimed at stabilizing the milk market. The urgency of the topic is due to the complexity of the problems of overcoming the steady trends of reducing the number of cows, reducing the production of milk and dairy products, the loss of economic competitive positions in the domestic and foreign markets. The research was carried out on the basis of the use of generally accepted scientific methods. The monographic method was used to analyze the recommendations of economists on ways to overcome the economic problems of dairy farming, economic and statistical - to study trends in the industry. The analysis of ways of the state financial support of milk production is carried out. It is shown that such support was provided without strategic goals of the industry. It was alternately aimed at supporting the development of dairy farming in agricultural enterprises and personal farms. Due to the small amount of direct state financial support for milk producers, such support did not provide the expected impact on increasing milk production and purchases by milk processing enterprises. The introduction of minimum purchase prices for milk by state agricultural management bodies did not ensure a proper impact on the state of dairy farming. Following their introduction, milk processing enterprises stopped purchasing milk, which led to further reductions in milk prices, forced reductions in cows and bankruptcy of milk processing enterprises. It is proposed to direct state financial support to the formation and development of viable vertical marketing systems, which automatically solve the debatable problems of expediency and possibility of state regulation of prices, without government intervention provides the production of competitive dairy products. A critical analysis of the recommendations for the unconditional promotion of development in the field of production and processing of milk of large businesses. Small dairy producers, focused on meeting the needs of consumers belonging to narrow market segments, can successfully compete with large dairy companies.