CURRENT TRENDS OF DAIRY MARKET DEVELOPMENT

Abstract

The conducted research testifies to the significant influence of modern events on the dairy market development both in Ukraine and in the whole world. In the dairy industry of Ukraine, there is a significant crisis deepening: there is a tendency to reduce the number of cows and, consequently, reduce the raw milk production. Key indicators of the dairy industry continue to decline. The article covers the main modern market’s tendencies of dairy products development. The most important among them are: a significant increase in the weighted average price of raw materials for the dairy industry – raw milk; reduction of dairy products sales in general in small packages; increase in butter and hard cheeses consumption and gradual decrease in drinking milk consumption, fermented products, dairy drinks, as well as soft cheeses (cottage cheese); changing the range of desserts from drinking versions to versions of spoons, flavors, types of additives and forms of packaging; the use of cereal ingredients, crispy, muesli, which will play the role of a healthy snack; increasing consumption of healthy foods that increase resistance to disease; acquisition of lactose-free products’ new value; development of alternative plant-based products; growth of services via the Internet; increasing the role of "clean" label; introduction of new products and tastes that are especially appreciated by consumers; growing interest in long-ripening cheeses; sales growth in the "free from" segment; development of the natural yogurt market; special attention to the preferences of the elderly; the desire for more complex, interactive and green packaging of dairy products with additional features. Despite the deepening crisis in the dairy industry, the widespread introduction of various marketing tools, the introduction of innovations with an emphasis on organic dairy products, whose market is growing every year, will not only keep sales at the previous level, but while taking advantage of new dairy products’ consumer needs and new opportunities, redistribute income and expand the economic activity of dairy enterprises. And the adoption of Law № 6155 is a significant factor in improving the economic situation of food producers, establishing a fair distribution of value added in the producer-processor-consumer chain, ensuring food security and taking into account changes that comply with EU directives.