The Influence of Raw Material Factors and Demand Factors on the Formation of Supply of Products by Milk-processing Enterprises on the Regional Market: Ukrainian Experience

Milk-processing enterprises of Ukraine play an important role in ensuring food security of the country and contribute to the saturation of consumer demand. Over the last decade, they have been functioning under market conditions characterized by a sharp change in environmental factors, which in turn put significant pressure on the formation of market situation conditions. This study focuses on the analysis of factors that determine, on the one hand, the supply of dairy products by milk-processing enterprises in Cherkassy region of Ukraine, and, on the other hand, influence the level of demand from potential consumers. In the first case, the influence of the selling price and disposable income per person was studied, and in the second - the availability of quality raw milk and its cost. The study of the level of the influence of these factors was carried out by means of methods of correlation and regression analysis, as well as analysis of the coefficients of elasticity of demand by price and by income. The results of the analysis of consumption of milk and dairy products by residents of Cherkassy region of Ukraine during 2010–2017 showed no clear trend in reducing or increasing the demand per capita, and the impact of the price factor of demand and income effect was insignificant. It makes the number of consumers a limiting factor for increasing the supply. Among the raw material factors, only the lack of raw materials of proper quality has a significant impact on the formation of supply by dairy enterprises.