IMPROVEMENT OF THE ORGANIZATIONAL AND ECONOMIC MECHANISM OF THE FUNCTIONING OF THE UKRAINIAN MARKET OF MILK AND DAIRY PRODUCTS IN THE CONDITIONS OF WAR
Authors: SOKOLYUK K.YU. 
Published: December 2024

Topicality. In the face of challenges and threats, the priority task of the state in terms of regulation is to provide the population with sufficient food of appropriate quality. One of the priority tasks is to create an effective mechanism for the development of commodity markets. Maintaining sufficient food supply (for domestic consumption) during the war period and restoring Ukraine's agricultural potential in the first postwar period depends on the availability and quality of the raw material sector - agriculture - which requires economic science to formulate new approaches and develop new methods and mechanisms to ensure its development. Crop production is more mobile and relatively easier to restore, while livestock production has certain peculiarities due to the physiological characteristics of animals, requirements for their maintenance and reproduction. Accordingly, support for this industry should be more balanced and comprehensive. And given the fact that almost half of the agricultural production is produced by households (private farms), this category of business entities requires special attention and support at the national, regional and local levels (the level of amalgamated territorial communities). Aim and tasks. The purpose of the study is to identify areas for improving the organizational and economic mechanism of the Ukrainian market of milk and dairy products during the war and the first period of post-war recovery. Objectives of the study: based on the analysis of trends in the development of the market of milk and dairy products and existing mechanisms of state support, to identify priority areas for improving the organizational and economic mechanism of its functioning, taking into account global trends in the context of restructuring the global economic order. Materials and methods. The study is based on the work of domestic scholars on the analysis of the state, development trends, institutional support and directions of development of the milk and dairy products market. In order to conduct an analytical review, official data published by the State Statistics Service and the Ministry of Agrarian Policy and Food of Ukraine were used to outline the trends in the milk and dairy products market. To summarize the institutional framework, we used regulatory documents of various levels and agencies. The main methods used in the study were: systemic and structural approach, induction and synthesis, statistical method; for visual presentation of the results - the method of graphical and tabular display of data. Research results. The article analyzes the trends in the development of the Ukrainian market of milk and dairy products. It was found that the trends in reducing the number of dairy cattle in the pre-war period continued during the war. In addition, the situation was exacerbated by the constant destruction of farms, milk commodity enterprises and the physical destruction of cows. It was determined that during the war there was a decrease in the number of cows by 18.2% (2024 compared to January 2022), while the average rate of decline did not exceed 8%. Accordingly, there is a decrease in gross production and, as a result, milk processing. The average purchase prices for milk in Ukraine as of 2023 increased by 14.4%, including: from the population by 7.1 and from enterprises by 14% and amounted to 7732.9 and 12181 UAH/t, respectively. It is shown that despite the constant shelling and the risks of losing not only profits but also dairy farms in general, Ukrainian producers are working on quality to bring closer the prospects of entering international markets. In particular, in 2023, the share of extra milk increased by 7.7%, while the share of 2nd grade milk decreased from 27.1% to 24.2%. The study determined that the market of milk and dairy products is a priority for the formation of a stable food system in Ukraine and therefore requires special attention from the state in terms of support and incentives to increase not only production volumes but also the quality of both milk and its processed products. Conclusion. It has been determined that in the wartime and the first postwar period, agricultural development should be carried out in compliance with the conditions of complexity and systematicity. It is necessary to strive for a balance in the development of agricultural sectors, namely, to maintain a balance between crop and livestock production due to their interdependence and complementarity. The analysis of the existing mechanisms and algorithms for obtaining state aid for dairy farms has shown their imperfection, in particular in relation to private farms. We have identified "information gaps" that complicate the process of receiving not only assistance, but also information on existing programs and projects. We consider it necessary to create an institution at the local level that will coordinate and facilitate the implementation of the Post-War Recovery Plan of Ukraine in terms of agricultural revival - the Center for Agricultural Development. By cooperating with government agencies and information and advisory centers, extension services, and research institutions, this center will bridge the "information gap" and save time in implementing government programs and initiatives.