Variable evaluation of efficiency of milk prodbction in conditions of unestable market

Abstract

Production efficiency characterizes the effectiveness of production. This category shows the increase in production volumes and at what price for the products and what costs of resources for the production of these products this increase is achieved, that is, it indicates the quality of economic growth. To determine the economic efficiency of production, it is necessary to study the results of production and sales activities, 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 population depend on its development. Such factors as a constant and unpredictable change in the economic situation in the country, changes in legislation, inadequate state regulation of production and sales of products, poor quality of raw materials and auxiliary materials, lack of motivational levers, a decline in the population’s income, reduction in the animal feed base and high-quality livestock influence the milk market.

The pricing situation on the milk market in Ukraine, the productivity of cows and the costs of producing the milk are considered to evaluate the effectiveness of milk production. A method is proposed for calculating a variable assessment of the economic efficiency of milk production depending on costs, cow productivity and selling prices in an unstable market, which takes into account the possible market situation, milk production technologies, price factors, optimistic and pessimistic conditions for the development of the industry. Variable calculations of the break-even price of milk sales have been carried out depending on the productivity of cows, production costs and the projected market conditions for milk.

The proposed methodological approaches enable the government of the agro-industrial complex to monitor the livestock production market and develop sound strategies to support agricultural producers, taking into account tax policies, internal and external conditions in food markets.