The serving nonprofit cooperation and optimal pricing – the priority of agrar-ian reform in dairy farming of rural households in Ukraine

Abstract

In recent years, the issue of the development of rural areas has been actively debated, and hopes for co-operation are in it. On the contrary, that exactly is the word co-operation has become used in our communication. However, the development of agricultural servicing cooperation, dominant in economies in developed countries, including the European Union, has not yet become dominant in Ukraine. Given the fact that Ukraine is a powerful agricultural country, the development of co-operation should promote the development of rural areas and guarantee food security. Today, the rural community is the foundation of building a civil society and reviving national traditions. Ukrainian village and peasantry was and remains the bearer of morality, national culture and ensuring a healthy lifestyle of the country. In the national and state dimensions, the relevance of the study of these problems is determined by the challenges of modern society, focused on globalization, which threatens the loss of national identity. One of the manifestations and consequences of this process is the increase of socio-economic decline and cultural degradation of the countryside, which has become an acute problem of the modern development of Ukraine and impedes the realization of all state-building potential. One way out of this crisis situation is to cultivate economic culture through the creation of a positive image of the rural owner and the implementation of the course declared by the state on the preservation and sustainable development of the countryside, introduction of effective economic mechanisms, raising the general and cultural level of the population and its welfare. In this regard, the cooperative sector of the economy fully meets the goals set by the society for highly effective transformation of the rural lifestyle of the Ukrainian peasantry, solving urgent issues of full employment, accelerating the formation of the middle class, and ensuring the country's food security. A decisive step towards a market economy is the accelerated growth of independent commodity producers – owners, individual, collective, cooperative, others, without which the market economy is impossible and this is precisely this, for our realities, is extremely important in the sense of the mandatory presence in it of a mass, fully developed service co-operation. The main essence of the service of cooperation is its main strategic principle connected with the association of agricultural producers with consumers of their products produced on the terms of payback and profitability of its production in a developed market economy. Co-operation (association) of citizens (households), other small commodity producers who produce a small amount of different commodity products for agricultural purposes and which in the food markets has a large regional consumer demand because of objective circumstances, it can not deliver it there by their own efforts in connection with insignificant volumes of remoteness from food markets, the lack of processing and storage, as well as the presence of regular consumers, etc., causes them to create service cooperatives, that is, for using its own efforts and means to develop an infrastructure superstructure in the form of cooperative formations of different types, specific for the specific conditions of these territories, which, on the rights of private property, will belong to their founders. Especially important for ensuring food security of Ukrainian society in today's conditions is the logical development and preservation of public livestock, in particular dairy cattle breeding, which for the rural population has a strategic importance as a resource for own consumption of cheap and extremely necessary dairy products, and, on the other hand, a resource of constant money revenues to restore the livelihoods of households that hold cows. The marketing strategy of dairy enterprises is focused solely on the final product, almost completely excluded from the chain of milk and milk products passing to the consumer of the primary producer. Significant changes in the structure of aggregate household resources, especially in rural areas, are associated with a reduction in cash receipts from agricultural sales, an increase in labor migration of the economically active population, and an increase in the level of pensions. Low purchasing prices for milk as raw materials and high prices for dairy products from processing enterprises and mark-ups in the trading network provoke stagnation of the domestic market with rising prices on unorganized markets, which almost equaled the prices in supermarkets. We conclude that, with the existing purchasing power of the population, an increase in milk production and its harvesting loses its economic motivation. Necessary for practical activity of cooperative formations will be deepened studies of the interrelations between the existing cow population in households, their productivity, and also the commodity of sold milk (sold to the produced), which directly have a direct impact on the payback of cows and the efficiency of economic activity. The cooperative operation in the countryside is a real basis of food security.

Economic framework of dairy family farms development

“…Зміна ціни впливає на зміну прибутковості значно більше (Zakova Kroupova, 2016). Ціна є також мотиваційним чинником у молочному скотарстві для фермерів (Gorbanyuk, 2018). Фермери, які виробляють молоко повинні сприяти підвищенню ринкових цін на продукцію, наприклад, шляхом створення маркетингових асоціацій (Michaličková et al, 2014).…”