Evaluation of the Perspective of the Dairy Business Development Based on Quality Management

Abstract

The article deals with the analysis of the status and trends of the development of the dairy business in Russia, particularly through the example of the Stavropol Territory. The analysis is indicative of the relocation of milk production in the sector of small and medium agribusiness due to the cow population decline: on the one hand, in the sector of large agricultural enterprises, and on the other handin the sector of household plots. A dependence of economic efficiency of the dairy business on the increase in the size of cow population has been found, but the scale effect is underused because of inadequate investment attractiveness of this type of business. Quality management should be used for increasing it. The article presents the evaluation of possible changes of status of dairy breeding based on the forecast of the key performance indicators of the industry broken down by categories of households in the region through analytical graduation and trend extrapolation. The scenario forecasting of the development of the industry in the agricultural enterprises of the Stavropol Territory served as a basis for the identification of the focus areas of the state support of the of the dairy business development on the basis of quality management. Recommendations for increasing the efficiency of dairy business (with the help of increasing the productiveness of milk cows by means of increasing the breed structure of cattle, improvement of farms, implementation of the innovational technologies of cattle-breeding management, and improvement of feeding) and for increasing the quality and milk and milk products through refusal from using mixtures and through production of "eco-milk", its branding and certification are offered. Guaranteeing high quality of "eco-milk" (high nutrition, high fat level, and rich vitamin structure) will allow reducing elasticity of demand for it and will stimulate successful development of entrepreneurship.

Assessment of Economic Efficiency of Production and Sale of Raw Milk by Dairy Farms Within an Agroholding

“…Recommendations for improving the efficiency of the dairy business are reduced to the following areas: the increase in the productivity of dairy cows while improving the quality of the herd, modernization of farms and the introduction of innovative technologies, improving the quality of milk produced that meets the requirements for natural products, which ultimately makes it attractive to consumers [9].…”

“…The analysis of the change dynamics in ownership patterns and production capacities of dairy cattle breeding in Russia showed, that due to the reduction in the number of cows there was the increase in large dairy companies with the decrease in dairy farms in the agricultural dairy business, as a sector of small and medium capacity milk production. The dependence of the economic efficiency of milk production on the increasing of the livestock number is relevant, but now it is not effective enough due to insufficiency of the investment projects being introduced into the dairy business [9].…”