Variable evaluation of efficiency of milk production in conditions unstable market

Abstract

ProducƟon efficiency characterizes the effecƟveness of producƟon. This category shows the increase in producƟon volumes and at what price for the products and what costs of resources for the producƟon of these products this increase is achieved, that is, it indicates the quality of economic growth. To determine the economic efficiency of producƟon, it is necessary to study the results of producƟon and sales acƟviƟes, to analyze expenses, sales prices, cost and profitability. The milk market is part of the structure of the food market of any country. The state of the country’s economy, its food security, the standard of living and health of the populaƟon depend on its development. Such factors as a constant and unpredictable change in the economic situaƟon in the country, changes in legislaƟon, inadequate state regulaƟon of producƟon and sales of products, poor quality of raw materials and auxiliary materials, lack of moƟvaƟonal levers, a decline in the populaƟon’s income, reducƟon in the animal feed base and high-quality livestock influence the milk market. The pricing situaƟon on the milk market in Ukraine, the producƟvity of cows and the costs of producing the milk are considered to evaluate the effecƟveness of milk producƟon. A method is proposed for calculaƟng a variable assessment of the economic efficiency of milk producƟon depending on costs, cow producƟvity and selling prices in an unstable market, which takes into account the possible market situaƟon, milk producƟon technologies, price factors, opƟmisƟc and pessimisƟc condiƟons for the development of the industry. Variable calculaƟons of the break-even price of milk sales have been carried out depending on the producƟvity of cows, producƟon costs and the projected market condiƟons for milk. The proposed methodological approaches enable the government of the agro-industrial complex to monitor the livestock producƟon market and develop sound strategies to support agricultural producers, taking into account tax policies, internal and external condiƟons in food markets.