Agricultural and Resource Economics (Jun 2016)
Perspective paths of dairy products market development
Abstract
In the article main stance and perspectives of development in Ukraine’s dairy market are revealed. Internal market and general conjuncture of dairy market formed by impacts of main important economic activity factors. Basic among factors are declines of the real incomes of citizens in connection with a substantial break between the dynamics of consumer price advance and nominal profits level of most which results in reduction of purchasing power users. As a result there is a decline in consumption of milk and dairy products. On the basis of the conducted calculations grounded necessity of development and introduction of the government having a special purpose program of support and creation of the agrarian households that produce milk on the base of households with the purpose of providing and forming of highly productive quantity of cows near 1 mln heads, additional growth of milk production on 4,5 mln t during 5 years and providing over 100 thousands of rural populations by an average annual profit not less than 40 thousands of UAH. On realization of the offered program we need a budget from 3,7 to 4,2 milliards of UAH, which will be returned during 3,5–4 years with additional tax receipts to budget from growth of production and sales of high quality milk.
