Figure 2. The dynamics of the price per 1 kg of milk per month
in 2018 in the studied ASC, 2018, UAH
Source: compiled by authors based on statistical data of studied ASC
During 2018 there was a tendency of price growth on average by UAH 0.48 in a
month. The price of milk supplied to the dairy plant is defined by the agreements
between the cooperative and a dairy plant or other consumer. However, cooperative
charges (services for harvesting and marketing) are deducted from the selling price.
The cooperative pays its members according to the price of marketing services
and not according to the price of milk. But the manager can try to get better price for
the milk through negotiation or finding another partner.
The cost of services included to the milk price contains all expenditures on its
collection and marketing, such as: rent for the milk collection point (if it is not provided
for free); depreciation of equipment, costs of milk transportation; wages of milk point
staff and social charges; other expenses (filter materials, necessary detergents,
disinfectants, etc.); overhead costs (wages of accountant and executive director and
social charges, electricity).
The price of milk is agreed with the members of the cooperative and varies
depending on the season. For example, in winter it is higher than in the summer.
Therefore, the price received by members of dairy cooperatives also changes. In
addition to the cooperative collecting milk from farmers, there are other firms in the
region that also buy milk from the farmers offering high prices. The members of the
cooperative can sell their milk to these firms, but they do not get bonuses for it.
Distribution. When forming effective distribution, it is necessary to consider the
supply and demand on the market, the competition and monopolization of processing
enterprises and intermediaries.
Polynomial
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