IDEAS home Printed from https://ideas.repec.org/a/ags/areint/341533.html
   My bibliography  Save this article

State support of the dairy industry and prospects for its development in the post-war period

Author

Listed:
  • Kalaitan, Tetyana
  • Stybel, Volodymyr
  • Hrymak, Oleh
  • Sarakhman, Oksana
  • Shurpenkova, Ruslana

Abstract

Purpose. The article aims – to identify current trends, determine the level of state support and prospects for the development of the dairy industry in Ukraine in the post-war period, taking into account cooperation with the EU. Methodology / approach. The research was conducted using the comparison method with the nearest EU country – Poland. The analysis of indicators of the development of the dairy industry was carried out on the basis of the data of the State Statistics Service of Ukraine, Poland, Eurostat, and Statista company using methods of relative values, a series of dynamics. Results. Analysis of the dynamics of the main dairy industry indicators in Ukraine revealed a long-term trend towards a decrease in milk production volumes. During 1990–2021, the volume of milk production decreased by 3 times, and the number of cows decreased by 5 times. Since 2020, the dairy industry has shifted from being export-oriented to becoming dependent on imports. On the other hand, Poland, which is geographically and climatically close to Ukraine, shows the opposite dynamics of the dairy industry development. Studying the functioning of the dairy sector in Poland revealed a high level of state financial support and fiscal stimulation. The study shows that the financial support of the dairy industry of Ukraine is noticeably insufficient, and the fiscal stimulation provided is inadequate. Moreover, the efficiency of managing budget funds is low. The situation is further complicated by the ongoing military aggression from russia. Considering the constraints of state funding, it is suggested that the array of instruments for supporting animal husbandry should be tailored based on the scale of entrepreneurial entities involved; differentiation in the provision of state support should also apply to agricultural producers in the de-occupied territories. In order to fully and promptly manage the amount of financing, it is necessary to speed up the procedure for distributing funds between areas and approving financial documentation; it is expedient to consider the possibility of payments for the keeping dairy cattle for small business entities without the need for coordination with the main manager of funds. Originality / scientific novelty. The obtained results allow a deeper investigation of the main development issues of the Ukrainian dairy industry in the pre-war period and under martial law in the context of further European integration. Practical value / implications. The study’s findings can be the basis for further scientific research in the direction of developing a comprehensive set of measures to stimulate Ukraine’s dairy industry. This is of particular importance in the post-war period promoting the restoration of food security.

Suggested Citation

  • Kalaitan, Tetyana & Stybel, Volodymyr & Hrymak, Oleh & Sarakhman, Oksana & Shurpenkova, Ruslana, 2023. "State support of the dairy industry and prospects for its development in the post-war period," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(3), September.
    • Handle: RePEc:ags:areint:341533
    DOI: 10.22004/ag.econ.341533
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/341533/files/7_Kalaitan_article.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.341533?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Nataliia B. Yaroshevych & Svitlana V. Cherkasova & Tetyana V. Kalaitan, 2019. "Inconsistencies of small business fiscal stimulation in Ukraine," Journal of Tax Reform, Graduate School of Economics and Management, Ural Federal University, vol. 5(3), pages 204-219.
    2. Knips, Vivien, 2005. "Developing Countries and the Global Dairy Sector Part I Global Overview," PPLPI Working Papers 23768, Food and Agriculture Organization of the United Nations, Pro-Poor Livestock Policy Initiative.
    3. Pisulewski, Andrzej & Marzec, Jerzy, 2022. "The Impact of Subsidies on Persistent and Transient Technical Inefficiency: Evidence from Polish Dairy Farms," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 54(4), pages 561-582, November.
    4. Magdana Kondaridze & Jeff Luckstead, 2023. "Determinants of dairy‐product trade: Do subsidies matter?," Journal of Agricultural Economics, Wiley Blackwell, vol. 74(3), pages 857-873, September.
    5. Brychka, Bohdan & Vyslobodska, Halyna & Voitovych, Nadiia, 2023. "Poverty in Ukraine: evolution of interpreting and analysis of impact factors," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(2), June.
    6. Petrick, Martin & Götz, Linde, 2019. "Herd growth, farm organisation and subsidies in the dairy sector of Russia and Kazakhstan," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 70(3), pages 789-811.
    7. Ingvil Gaarder, 2019. "Incidence and Distributional Effects of Value Added Taxes," The Economic Journal, Royal Economic Society, vol. 129(618), pages 853-876.
    8. Yuquan Chen & Xiaohua Yu, 2019. "Do subsidies cause a less competitive milk market in China?," Agricultural Economics, International Association of Agricultural Economists, vol. 50(3), pages 303-314, May.
    9. Baudracco, Javier & Lazzarini, Belén & Rossler, Noelia & Gastaldi, Laura & Jauregui, José & Fariña, Santiago, 2022. "Strategies to double milk production per farm in Argentina: Investment, economics and risk analysis," Agricultural Systems, Elsevier, vol. 197(C).
    10. Kumbhakar, Subal C. & Li, Mingyang & Lien, Gudbrand, 2023. "Do subsidies matter in productivity and profitability changes?," Economic Modelling, Elsevier, vol. 123(C).
    11. Nataliia Yaroshevych & Volodymyr Stybel & Bogdan Gutyj & Oleh Hrymak & Lesya Kushnir & Tetyana Kalaitan & Iryna Kondrat, 2021. "Analysis of state of public financing of environmental protection," Eastern-European Journal of Enterprise Technologies, PC TECHNOLOGY CENTER, vol. 6(13(114)), pages 106-119, December.
    12. Kosar, Nataliia & Kuzo, Nataliia & Binda, Jacek & Hayvanovych, Nataliya & Pytulyak, Nataliya, 2022. "Modeling of the factors influencing the dairy market in Ukraine," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 8(3), September.
    13. Onegina, Viktoriya & Megits, Nikolay & Kravchenko, Olha & Kravchenko, Yuliia, 2022. "Price transmission in milk supply chain in Ukraine," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 8(01), March.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kalaitan, Tetyana & Stybel, Volodymyr & Hrymak, Oleh & Sarakhman, Oksana & Shurpenkova, Ruslana, 2023. "State Support of the Dairy Industry and Prospects for its Development in the Post-War Period," Agricultural and Resource Economics: International Scientific E-Journal, Agricultural and Resource Economics: International Scientific E-Journal, vol. 9(3), January.
    2. Dai, Jiawa & Feng, Yuchen & Wang, Ziuqing & Yuan, Guang, 2021. "Does higher market power necessarily reduce efficiency? Evidence from Chinese rice processing enterprises," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 24(01).
    3. Petrick, Martin, 2021. "Post-Soviet agricultural restructuring: A success story after all?," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 63(4), pages 623-647.
    4. Daria Loginova & Stefan Mann, 2022. "Institutional contributions to agricultural producer price stability," Agricultural and Food Economics, Springer;Italian Society of Agricultural Economics (SIDEA), vol. 10(1), pages 1-22, December.
    5. Hana Doležalová & Kamil Pícha & Josef Navrátil & Aneta Bezemková, 2014. "Factors That Influence the Selling of Milk Through Milk Vending Machines," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 62(4), pages 641-650.
    6. Guangwei Zhang & Yahan Shi & Nuozhou Huang, 2024. "Government Subsidies, Green Innovation, and Firm Total Factor Productivity of Listed Artificial Intelligence Firms in China," Sustainability, MDPI, vol. 16(8), pages 1-20, April.
    7. Milena Bojovic & Andrew McGregor, 2023. "A review of megatrends in the global dairy sector: what are the socioecological implications?," Agriculture and Human Values, Springer;The Agriculture, Food, & Human Values Society (AFHVS), vol. 40(1), pages 373-394, March.
    8. Bartal, Mehdi & Becard, Yvan, 2024. "Consumption tax cuts vs stimulus payments," Journal of Public Economics, Elsevier, vol. 239(C).
    9. Götz, Linde & Heigermoser, Maximilian & Jamali Jaghdani, Tinoush, 2022. "Russia's food security and impact on agri-food trade," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, pages 115-137.
    10. Pereda, Paula Carvalho & Moz-Christofoletti, Maria Alice & Duran, Ana Clara & Louzada, Maria Laura da Costa & Ng, Shu Wen, 2024. "Equity-Driven fiscal Policies: Taxing Ultra-Processed products and subsidizing minimally processed foods," Food Policy, Elsevier, vol. 126(C).
    11. Matthias Firgo, 2024. "Price effects and pass-through of a VAT increase on restaurants in Germany: causal evidence for the first months and a mega sports event," Papers 2409.01180, arXiv.org.
    12. Robinson, Sarah & Bozayeva, Zhanyl & Mukhamedova, Nozilakhon & Djanibekov, Nodir & Petrick, Martin, 2021. "Ranchers or pastoralists? Farm size, specialisation and production strategy amongst cattle farmers in south-eastern Kazakhstan," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 11.
    13. Simon Loretz & Oliver Fritz, 2021. "Wirkungen der im Zuge der COVID-19-Krise reduzierten Mehrwertsteuersätze. Erfahrungswerte aus rezenten Reformen," WIFO Studies, WIFO, number 67258.
    14. Lydia Dimitrakopoulou & Christos Genakos & Themistoklis Kampouris & Stella Papadokonstantaki, 2023. "VAT pass-through and competition: evidence from the Greek Islands," CEP Discussion Papers dp1923, Centre for Economic Performance, LSE.
    15. Mikhail Krivko & Luboš Smutka, 2020. "Trade Sanctions and Agriculture Support in Milk and Dairy Industry: Case of Russia," Sustainability, MDPI, vol. 12(24), pages 1-17, December.
    16. Warwick, Ross & Harris, Tom & Phillips, David & Goldman, Maya & Jellema, Jon & Inchauste, Gabriela & Goraus-Tańska, Karolina, 2022. "The redistributive power of cash transfers vs VAT exemptions: A multi-country study," World Development, Elsevier, vol. 151(C).
    17. Thiess Büttner & Frank Hechtner & Boryana Madzharova, 2023. "Taxes and Gender Equality: The Incidence of the ‘Tampon Tax’," CESifo Working Paper Series 10580, CESifo.
    18. Robinson, Sarah & Petrick, Martin, 2024. "Land access and feeding strategies in post-Soviet livestock husbandry: Evidence from a rangeland system in Kazakhstan," Agricultural Systems, Elsevier, vol. 219(C).
    19. Georg Schneider & Frank Stähler & Georg U. Thunecke, 2022. "The (Non-)Neutrality of Value-Added Taxation," CESifo Working Paper Series 9663, CESifo.
    20. Yuquan Chen & Xiaohua Yu, 2022. "Estimating market power for the Chinese fluid milk market with imported products," Agribusiness, John Wiley & Sons, Ltd., vol. 38(2), pages 386-401, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:areint:341533. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: http://are-journal.com/are .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.