INCREASE IN MILK PRODUCTION AS AN EFFECTIVE STRATEGY TO REDUCE COSTS

Issue № 2, 2017, article № 5, pages 33-39

Section: Agrofood market

Language: Russian

Original language title: УВЕЛИЧЕНИЕ ОБЪЕМОВ ПРОИЗВОДСТВА МОЛОКА КАК ЭФФЕКТИВНАЯ СТРАТЕГИЯ СНИЖЕНИЯ ИЗДЕРЖЕК

Keywords: DAIRY CATTLE, OUTPUT, COST PRICE, DECREASING-COST INDUSTRY, INCREASING-COST INDUSTRY, GOVERNMENT SUPPORT

Abstract: The dairy cattle’s breeding belongs to one of the most problem branches of agriculture. In article relationships of cause and effect of change of volumes and cost of production of milk are analysed. It is revealed that in the long term decrease in prime cost is a consequence of increase in production of milk, as at the level of the separate enterprises, so branches in general. Therefore, in the conditions of absence of the market power of milk-raw materials producers, limited opportunities of the state support of branch, need of control of the prices of dairy products, increase in the outputs is the effective strategy of decrease in expenses. Search and realization of the actions providing decrease in expenses in dairy branch have to be considered as priority and at the level of separate farms, and regions. Development of dairy cattle breeding in the main countries is differentiated: regarding the countries the dairy cattle breeding develops as branches with the decreasing expenses, in parts - with increasing, but in general branch in the world, increasing volumes, reduces expenses. The conclusion is drawn that support of dairy cattle breeding in regions with a high agro biological potential, at the seeming high efficiency in the short-term period, isn't capable to provide stability of development of branch because of high alternative expenses, possibilities of production of more marginal types of agricultural production. Need of priority realization of the actions of the state support of dairy cattle breeding providing decrease in expenses at milk increase in production is proved. Governing bodies need to increase efficiency of the state support, correcting the principles and forms of distribution of subsidies.

Authors: Surovtsev Vladimir Nikolaevich, Nikulina IUliia Nikolaevna