Economic framework of dairy family farms development


Keywords: dairy farming, family farm, rural areas, production, economic efficiency.

Abstract

One of main industry of livestock in Ukraine there is the dairy farming on the cost of gross value products, development of which status substantially influences on food security providing and AIC export potential forming. However much the about two third of industry gross value products made by households, which are characterized with the low level of efficiency and marketability. In the article the conducted researches are in relation to development dairy cattle breeding in Ukraine by creation of farms, including family type, on the base of households. Achievement of the put purpose, in our viewpoint, possible at forming of economic interest to work in dairy farming at the active rural population. As a result of research certainly basic economic criteria of farms development taking into account the maximum scales of production activity, cost of sales, and also necessary level of technological and economic efficiency, which will be instrumental in the successful functioning of such economic agent. The economic framework of dairy production is developed in the family farms of three types, which differ on the quantity of cows and sales prices for milk. Certainly, that the cost of the advanced capital which is needed for milk production organization in family farms will differ from 25 to 60 thousand euro taking into account state support indemnifications on the purchase of the fixed assets, scales of production and present material and technical resources of households, which creation is offered on the base of. Creation of farms with a herd not less than 20 cows at the farm gate wholesale milk price  and also farms with a herd not less than 9 cows, in a that number the already existent households created on a base subject to condition organization sales of total mine-out products on prices which are close to the retail, with the purpose of average monthly sufficient sum of cash flow achievement which will be instrumental in forming economic and investment interest, among the capable of working habitants in rural areas to produce milk is offered. Recoupment of such farms depending on the scales of production, milk sale prices and level of state support, will make from 3 to 6 years. The important condition of rapid family farms recoupment is a state support level, cows productivity and milk prices. Also certainly basic indexes of economic efficiency and investment attractiveness of milk production in the offered three types of farms. Conducted economic analysis of main indexes of efficiency, on the basis of which the best possible option dairy family farm is justify. The scientifically substantiated that family dairy farms development on the base of households in rural areas will be instrumental in the increase of economic potential of the dairy farming in Ukraine.

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Published
2019-05-11
How to Cite
Chemerys, V., Dushka, V., Maksym, V., & Solomonko, D. (2019). Economic framework of dairy family farms development. Scientific Messenger of LNU of Veterinary Medicine and Biotechnologies. Series Economical Sciences, 21(92), 33-42. https://doi.org/10.32718/nvlvet-e9206