Improving the Price Mechanism in Milk Production and Processing

Abstract

One of the priority tasks for the Russian Federation is to ensure the country’s food security since the production of high-quality domestic dairy products directly depends on it. The paper aims to identify and disclose the significant problems of low efficiency of milk production by agricultural manufacturers. The research object is the dairy subcomplex of the Russian Federation and the Penza Region. The methods of the research are abstract-logical, monographic, economic-statistical, and analysis. The authors present the main reasons hindering the effective development of dairy cattle breeding. The authors substantiate the idea that trade organizations unreasonably raise retail prices of finished dairy products to obtain the highest profits. The authors are convinced that it is necessary to develop a methodology for accounting for produced and sold milk at the national level. Additionally, the authors propose the methodology for calculating the purchase price of milk, considering its quality, which will stimulate manufacturers to produce higher quality products. According to the research results, the authors conclude that the improvement of the industry’s efficiency requires the improvement of the pricing mechanism and the development of its concept, contributing to the settlement of incomes of milk manufacturers and processors.