Ways of increasing domestic livestock supply and improving its quality

I.M. Kyryliuk

Abstract


Introduction. Today one of the main problems in filling domestic agricultural market in Ukraine is a slight volume that domestic livestock producers offer because of reducing animals number and a significant reduction in the volume of milk and meat production. While meat and dairy products are the main source of complete protein, it is essential for the normal functioning of the human body. Its deficiency leads to metabolic disorders, the development of many diseases and reducing population life expectancy.


Purpose. The research aims at studying the ways of increasing domestic livestock production offers and improving its quality in modern conditions.


Results. The study substantiates proposals in increasing domestic production of livestock and improving its quality. Unsatisfactory proportion of intersectoral exchange at livestock products market in Ukraine was detected. It was also proved chaotic pricing in the domestic agricultural market. The article proposes specific ways of improving the state support mechanisms to livestock development in Ukraine. The feasibility of a return to widespread until 2011 indirect support to domestic producers of milk and meat in the form of special VAT regimes is specified. Proposed settings of milk production structure change in Ukraine both by quality parameters and by business entities. Proved the necessity of providing subsidies to agricultural enterprises (and their proportions are calculated) for technological projects support in technological upgrading of dairy farms and complexes, as well as developing dairy complex construction projects and conduct relevant tenders.


Originality. Developed the state mechanism of livestock support in Ukraine, which, unlike the existing ones, provides the following: 1) filling the state intervention fund with livestock processing products - objects of state price regulation (meat and offal of slaughtered animals and poultry, milk powder , butter) that is connected to the seasonal fall in prices of agricultural raw materials and relevant reaching a certain minimum level; 2) the minimum price of agricultural raw materials, that are made-products - objects of state price regulation established taking into account the industry average regulatory costs of their production, the minimum level of profitability of at least 10 percent (including households); 3) minimum prices of raw materials are calculated based on science-based agricultural share in the price of the final product - the object of state price regulation; 4) operations of filling the state intervention fund with objects of state price regulation - products of agricultural raw materials involved only processors that purchase agricultural raw materials for processing at a price not lower than the officially established minimum price.


Conclusion. Applied now in Ukraine methods of livestock production support and improving its quality is insufficient and ineffective, do not provide equivalent cross-industry exchange. A unified approach to coordination and regulation of all entities (including holdings), hopes only on market mechanisms lead to price discrimination of weak links - non-monopolists (that farms are in most cases), which greatly reduces the possibility of livestock production. Now we ought to solve urgent task of livestock production transition to the innovative type of development, which primarily involves the effective institutional framework establishment aimed not only at the strict quality control, but also to stimulate the modernization of production, and introduction of environment friendly technologies to produce safe products.


Keywords


livestock products; the agricultural market; price discrimination; the structure of retail price; interdisciplinary exchange; indirect state support; intervention buying; State intervention fund; milk quality; traditional production technology

References


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