Developing dairy farming and improving product quality

Abstract

The need to find ways to improve the quality characteristics of milk as a basis for increasing the competitiveness of dairy products in the global market determines the relevance of the study. Ukraine’s dairy industry is one of the critical ones in the agricultural sector of the economy, as it provides the country’s population with vital foodstuffs. The purpose of this study was to substantiate the areas of solving organisational and economic problems of development of the dairy industry to meet the needs of the domestic market with quality dairy products and increase export potential. The study was conducted to identify the main reasons for the transformational changes that have taken place in dairy farming and to outline the promising areas for the development of this industry in the context of improving product quality. This study focused on European and national requirements for the quality of raw milk. The following methods of economic research were used in the analytical material: economic and statistical, comparative analysis, graphical, logical generalisation, systematic approach, systemic and structural analysis, calculation, and design. The study analysed the data of agricultural enterprises and households engaged in milk production in Ukraine for 2010-2022 and recalculated the purchase prices for raw milk in relation to the European quality indicators. The findings of this study showed that ensuring the competitiveness of dairy products depends on the quality of milk. It was found that it is higher in European countries, and therefore high standards for the quality of raw milk become a barrier to entry into European markets for most domestic dairy processing enterprises. Accordingly, the state’s strategy should focus on increasing the production of high-quality raw milk and growing export potential by forming specialised milk production cooperatives for dairy processing enterprises. The practical significance of the obtained results is that the author’s recommendations can be used by agricultural enterprises or private households in their everyday activities