Methodical Approaches to the Evaluation of the Competition Level of the Milk and Milk Products of Ukraine
Phd in Economic Sciences
National University of Water Resources and Environmental Management, Rivne
Popko O. V. (2020). Methodical approaches to the evaluation of the competition level of the milk and milk products of Ukraine. Visnyk ekonomichnoi nauky Ukrainy, 1 (38), рр. 183-187. doi: https://doi.org/10.37405/1729-7206.2020.1(38).183-187
Competition in the market of dairy products is an important requirement for its existence and development, forcing market operators to introduce more efficient production methods, to offer new concepts and cost proposals, to start working in new segments. Since the main milk producers in Ukraine are agricultural enterprises is extremely important is the proper formation of the market of dairy products in Ukraine, one of the main conditions of formation of which is the high level of competition between manufacturers. The existence of effective competition that balances the interests of subjects of market relations, stimulate innovation and competition in all spheres of activities, is one of the main conditions of development of economy of Ukraine. This competition opens up new opportunities for production improvement and develops the optimal structure of market supply and demand contributes to the optimization of production costs.
The aim of this article is to assess the level of monopolization and competition in the market of milk and dairy products of Ukraine based on the index of market concentration, the Herfindahl-Hirschman index, a measure of dispersion, index of entropy, the Lorenz curve. The distribution of market shares among producers of dairy products was carried out based on exponential distribution law, on the basis of which the simulated distribution of smaller producers, which provide dairy products 45% percent of the market of Ukraine. Assessment of the level of monopolization and competition of the dairy market of Ukraine has allowed systematizing a set of operators of the dairy market and gave an opportunity to find out the percentage of coverage of the domestic market of processing of milk and production of dairy products. During the research, it was found that the market of dairy production in Ukraine is highly competitive that is a positive factor for further development of this market.
market operators, milk and milk products market, market concentration index, Herfindahl-Hirschman index, variance indices, entropy index, Lorentz curve.
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