Uman National University | today: 12/28/2025

Dairy subsector of the agro-industrial complex of Ukraine: current status and development prospects

Author(s) Mudrak R.P., Doctor of Economics, , Uman National University of Horticulture
Category Economics
year 2025 issue Issue 107 part 2
pages 296-305 index UDK 636.034:637.1(477)
DOI 10.32782/2415-8240-2025-107-2-296-305 (Link)
Abstract Sustainable and full-fledged development of the agricultural sector of the economy is possible only if all the industries that form it function in a balanced manner. Currently, there are significant distortions in reproduction processes, which are manifested in the violation of sectoral proportions of agricultural production and the reduction of the raw material base of food industry enterprises. The situation in the dairy sub complex is particularly threatening. The crisis has affected all parts of the value chain: the number of cows, production of raw milk, its processing and manufacture of finished dairy products are declining. The share of imported dairy products in the domestic market is growing rapidly. This increases competitive pressure on domestic producers and threatens national food security in this segment of the food market. One of the most disappointing conclusions of the assessment of the current state of the domestic dairy sub complex is the statement that the state's agricultural policy aimed at stimulating milk production and processing has failed. From the first years of independence to the present day, the national administration has declared its readiness to support the development of dairy farming, but in fact the crisis in the industry continues. This indicates not only the inefficiency of the state agricultural policy, but also wastefulness. After all, a significant amount of budgetary resources has been allocated to support the dairy industry over the years of independence. The problem can only be solved with a comprehensive, multi-level approach: – real, not declarative, incentives for the production of raw milk; – protection of the domestic market from excessive imports of dairy products; – stimulating the introduction of a modern international quality management system at dairy processing enterprises (ISO 9001, HACCP); – stimulating final demand for domestically produced dairy products.
Key words value chain, agricultural enterprises, households, dairy raw materials, quality, dairy processing plants, dairy products, imp
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