EFFECTIVE QUALITY MANAGEMENT OF LIVESTOCK PRODUCTS IN UKRAINE: ECONOMIC PREREQUISITES AND THREATS

Iryna Kyryliuk

Abstract


Introduction. In Ukraine, over the last decades, a complex of factors and threats of socio-economic nature have emerged that do not contribute to improving the quality of livestock products. The low quality of some domestic livestock products is due, in particular, to the poor standard of living of the population and low incomes of most households, prompting them to consume low quality products. The consumer often chooses low quality livestock products that can be produced in insanitary conditions. More expensive products of animal origin are often replaced by cheaper vegetable products. This causes a threat to the country's food security and sustainable development of the agricultural sector.

Purpose. The purpose of the scientific article is to identify and analyze the economic factors, preconditions and threats that impede the effective management of the quality of livestock products in Ukraine.

Results. It is revealed that in conditions of improvement of the management system and state control over the safety and quality of livestock products in Ukraine, the volumes of consumption of its main species decreased in comparison to 2014. It is proved that in the conditions of low level of real incomes of the population in Ukraine, socio-economic factors of quality became dominant. The tendencies of irrational nutrition of the population of Ukraine, which tries to satisfy energy needs at the expense of economically more accessible food of vegetable origin, are determined. It testifies to the difficult situation with the health of the nation. Without proteins of animal origin, the human body cannot function properly. It is estimated that the potential of expanding the domestic market of products of animal origin in Ukraine (in 2018 prices) is about 200 billion UAH or 8 billion US dollars. Using simulation methods, it is shown that in the inertia scenario, consumption of basic livestock products by 2020 will not lead to a rational diet for milk and dairy products, meat and meat products.

Originality. The methodical aspects of forecasting the capacity of the market for high-quality livestock products in Ukraine have been further developed on the basis of calculations of the dependence of consumption volumes on the size of the average per person incomes (for meat and meat products, as well as eggs, the correlation coefficient r is 0.97; fish and fish products the correlation coefficient r is 0.82), as well as the coefficients of elasticity of demand for income (the elasticity of demand for income for meat and meat products is 0.38; eggs is 0.40; milk and milk products is 0.03; fish and fish products is 0,14). It gives the opportunity to substantiate effective instruments of influence of the state on the parameters of food security in Ukraine and increase the intellectual capacity of the nation.

Conclusion. Considering the low level of consumer incomes and their lack of confidence in the Ukrainian conformity assessment system, most of them are not yet ready to pay much for high-quality livestock products, including organic ones. Only 2-5% of respondents are ready to pay more than 80% of value added (for organic meat are 5% of respondents, organic dairy products are 4%, eggs are 3%). The key segment of the domestic market for organic livestock products will continue to be households with average per person income attributed to the upper decile group (10% of the highest income households). In Ukraine, major types of high-quality products of animal origin are economically inaccessible to a large part of households. The forecasting increase of safety parameters and a certain improvement in the quality of livestock products due to the implementation of the regulations that came into force during 2014-2018, may lead to a decrease in market demand and even greater inaccessibility of these products for the population. All this can only aggravate the situation with guaranteeing the food security of the country, forming the prerequisites for increasing the intellectual capacity of the nation.


Keywords


livestock products, animal products, quality, safety, quality management, market capacity, organic products.

References


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