Innovative development dairy husbandry in Ukraine

During 2000 – 2013 years volume of milk production inUkrainehas decreased by 9.2% – from 12.65 million tons to 11.49 million tons. The reduction of milk production happened mainly due to the reduction in the number of cows. A significant decline was observed in agricultural enterprises. During this period milk production has decreased by 29.6%. The major amount of milk was produced in households - 77.5% of the total. Milk production inUkraineper capita for the period has decreased from 257.4 kg to 252.1 kg. Market of milk and dairy products inUkrainenow satisfies the needs of local consumers in this kind of products at 58.1% of physiologically reasonable standards. 7.7% of the milk is used for export purposes, import of dairy products amounts to 5.5%. The development of Ukrainian market of milk and milk products is in line with global trends. Technological innovative progress in dairy husbandry caused reduction in the number of small farms and growth in the number of large enterprises with milk production. If in 2009 the number of agricultural enterprises with total number of cows over 100 head was 36, in 2013 these were already 53. During this period, the annual productivity of cows increased by 965 kg. Economic efficiency of milk production has increased. The share of enterprises with unprofitable milk production decreased from 60.2% in 2009 to 37.5% in 2013. A more detailed analysis of the agricultural enterprises which had in 2013 the profitability of milk production over 30% confirmed that development of dairy husbandry they made on the basis of innovation. However, construction and reconstruction of existing farms with the production of milk on the basis of innovation requires significant investment. Determination of the economic effectiveness of dairy husbandry production and feasibility of investment in reconstruction and construction was carried out for enterprises with 200, 300, 400 and 800 cows with a condition of growing replacement young stock. The calculation results showed that an increase in milk production to 18.34 million tons is possible under condition of 109.36 billion UAH investments.