Mechanism of Subsidies as an Element of State Support of Livestock Sector’s Development in Ukraine

Abstract

Abstract The article presents results of the analysis of the cattle breeding industry’s development in Ukraine, the main trend of which was the decrease in the number of cattle, including the number of cows. A way to support livestock in the industry using the subsidy mechanism is suggested. This approach is aimed at increasing profitability of the cattle breeding industry output per 1 ha of fodder crops in the farm to profitability of barley production from 1 hectare in the area. The results of the proposed approach show that increasing milk profitability from 1 hectare of fodder crops to barley profitability from 1 hectare can be the basis for maintaining the livestock sector. The use of the livestock productivity factor (cow milk yield) in the proposed methodology makes farms more interested in increasing livestock productivity, which in turn increases the number of subsidies in the industry. In addition, an increase in fodder crops area in the farm has an ecological effect.