Economic efficiency of milk production in agricultural enterprises

Abstract

Introduction. The development of dairy production, which the consumption of milk and dairy products depends on, should be based on the effective functioning of market-oriented agrarian formations. The experience of the recent years indicates the creation of a powerful group of dairy farms, whose share in production is constantly increasing. The article analyses the dynamics of the main indicators of the economic efficiency of milk production in agricultural enterprises of Ukraine. The structure of production costs is considered. The directions of their reduction are determined. Grouping of agricultural enterprises is made depending on the number of cows, their productivity, concentration and specialization of production.

Purpose. The article aims to develop methodological principles for estimation the impact of some factors on the economic efficiency of milk production in agricultural enterprises in Ukraine.

Results. It has been established that milk production as a whole has become profitable during the last decade, especially for groups of farms with 500 and more cows. It has been proved that in case of impossibility of influence on the purchase price, one of the directions of maintenance of profitability is the increase of cows’ productivity. The main factors that influence the economic efficiency of milk production have been identified. They are the concentration and specialization of production, the deepening of which will provide profitability to ensure expanded reproduction, intensification of production, introduction of innovative technologies, increase the competitiveness of domestic dairy farms.