But it should be noted that there are certain issues with milk sales, in particular,
its low basic price. In 2017 1 litre of milk cost UAH 4,6 and in 2018 it cost UAH 4,9.
These prices are low, but they reflect the market trends of yearly increase for 3-5% of
basic price. The dynamics of the volumes of received and sold milk by the studied ASC
by months of 2018 is shown at (Fig. 1).
Figure 1. Received and sold milk by the studied ASC in 2018, in kg
Source: compiled by authors based on statistical data of studied ASC
Almost all of the received milk is sold by cooperative to the processing enterprises
and only small amount of milk farmers used for their own needs.
Price. The pricing policy of any enterprise is one of the main components of its
marketing activity. The production, storage, transportation, processing, sales and
consumption are influenced by price changes. That, in turn, depends on the seasonality
of agricultural production, constant demand for food throughout the year, and
dependence of the price on the shelf life and product quality [10]. The pricing in the
agrarian sector is affected by various factors: the elasticity of demand for products; a
large number of producers; high capital intensity of production with significant
differentiation of structure and level of expenses depending on the region and type of
products; the inability to budget the cost of production until the products’ actual
production; the velocity of circulation of capital, that requires continuous involvement
of credit; seasonality of production; price disparity [11]. The pricing system of the
cooperative is specific, so it provides an opportunity to act as a non-profit organization
and provide services at their cost. The dynamics of the price per 1 kg of milk per month
in 2018 in the studied ASC is shown at (Fig. 2).
63990
67158
106895
121292
154494
137164
131283
169833
161352
149276
111138
92545
61582
62642
103235
116696
147927
127332
126102
163299
153840
145647
105201
86541
0
20000
40000
60000
80000
100000
120000
140000
160000
180000
Ja
n
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ar
y
F
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ru
a
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Ma
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A
p
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Ma
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Ju
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Ju
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Collected milk, kg
Sold milk, kg
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