IDENTIFICATION OF FEATURES OF FUNCTIONING OF DOMESTIC DAIRY MARKET OPERATORS

Abstract

The dairy industry of Ukraine is characterized by a high level ofcompetition; it has significant potential for increasing production andobtaining stable incomes. The research showed that there are certainproblems that hinder the development of the industry including thereduction of cows, reduced production of raw milk, and low purchasingpower of the population in the domestic market, increasing imports bycertain groups of dairy products. Solving the problems of the dairy industry of Ukraine and developing strategies for its further development is impossible without in-depth analysis and identification of the peculiarities of the functioning of domestic dairy market operators. The vast majority of the TOP-10 domestic operators of the milk and dairy products market are both milk processors and producers of dairy and milk-containing products. Among them are dairy holdings «Terra-Food», «Danone-Ukraine», group of companies «Dairy Alliance», SE «Lactalis-Ukraine», LLC «Lustdorf», PJSC «Vinnytsia Dairy Plant», «ROSHEN», PJSC «Transnistrian Plant», «MilkilandUkraine Company», PJSC «Ternopil Dairy Plant». At the same time, the presence of such giants of the world dairy market as Nestle, Lactalis, Danone in Ukraine encourages operators of the domestic dairy market to improve technological processes and change conceptual approaches in marketing.There are several prospects for the development of the dairy directionby domestic market operators. They include 1) consumer orientation bytaking into account the tastes and preferences of certain target categories of consumers; 2) ensuring high standards of quality and safety from the initial source of raw materials to the final consumer; 3) development of innovative categories of dairy products through the use of experience of industry professionals, advanced technologies, the latest equipment.Focusing on new innovative types of dairy products with a specificfunctional purpose, on narrow target segments of consumers, and on newgeographical segments of dairy sales can be considered as promising areas of development of the dairy industry of Ukraine.