Mechanisms for improving economic relations in the milk subcomplex of the agricultural sector: a case study of Ukraine

Abstract

Proposals for the formation of corporate and individual sector strategies are proposed. The dynamics of milk production and processing in Ukraine for 2010-2018 is analysed, where it is noted that the tendency to reduce milk production is still observed, and this, in turn, serves as a significant problem in the dairy subcomplex. The structure of milk purchase by processing enterprises is also considered and characterized, where, according to the requirements of European standards, only grade II milk is received from households for processing. A study was conducted on the author's vision of the development of the commodity dairy sector in rural areas. The main advantages of the participation of the territorial community in the creation and functioning of the procurement organization are investigated. The gradual implementation of measures for the formation of entrepreneurial initiatives in dairy farming in the countryside is demonstrated. There are a number of advantages for the territorial community of the formation of cooperatives, namely the creation of new jobs, increased financial capacity of local budgets due to increased tax revenues, improving the social situation in the united community, the arrival of new techniques and technologies. It was found that the basis for the creation of a production or service cooperative can be a procurement organization formed with the participation of the territorial community or without it. The results of the research on the improvement of organizational and economic relations of milk market participants are demonstrated and substantiated. Perspective directions of development of organizational bases of a dairy subcomplex which allow combining the economic success of business activity of rural households with development of rural territories are considered.