ANALYSIS OF FACTORS INFLUENCING THE EFFICIENCY OF MILK PRODUCTION IN AGRICULTURAL ENTERPRISES

Abstract

In the dairy subcomplex of Ukraine, the success of market relations largely depends on the pricing of its products. It is proved that today the price is one of the main factors that shape the competitive advantages of milk and determine its share in the dairy market. In the context of global challenges, agricultural enterprises have limited influence on the selling price, so the real direction of increasing the profitability of production is to reduce its cost. However, studies show that the formation of milk prices can be influenced by the producer through the quality of products. Thus, due to the growth of fat and protein content above the basic norms, milk acquires a higher or extra grade, which allows the producer to receive surcharges and, as a result, a higher selling price. Profitability is the main indicator of production efficiency and depends on many factors, so the author studied the impact of the main ones, namely price, cost and quality parameters of products. It is proved that increasing the level of profitability can be achieved by reducing the cost of production, increasing the selling price, which is directly affected by product quality. It is established that each percentage increase in price provides a greater increase in the level of profitability compared to such an increase at a lower level of profitability. In contrast to the increase in price, the increase in profitability in the event of a decrease in cost does not increase by the same amount, but tends to increase in the case of each decrease in cost by 1%. It is substantiated that the main directions of increasing the level of profitability are to reduce the cost of production and increase the selling price due to the growth of product quality, as these factors provide an increase in the studied indicator.