Abstract

The aim of the article. The aim of this article is to analyze the benefits of dairy marketing cooperatives development for small farms, milk producers. Author proposes functional development models to reflect the functions of the cooperative. The results of the analysis. The article identifies such benefits of marketing cooperation: the increase of the efficiency of dairy production through specialization with the help of individual savings which are paid by members of the cooperative supply (storage and transportation of milk); protection of members from other manifestations of monopoly (commercial) sales structures; allowance to have economic benefits for each individual member of the cooperative. The author has noted that in order to improve the efficiency of the marketing of products, dairy cooperative has to comply with the following requirements: It should have its own material and technical base. If there are no significant capital investments, it is appropriate contracts for rental of space to third parties. It should buy its own vehicles, make rational schemes and routes of milk collection and maximize the use of available specialized transport. It must operate on large volumes of products. To do this, one person must carry out a significant number of functions, including the processing and marketing of dairy products produced by plants on the basis of their own material and technical base. Cooperative is recommended to have an expanded customer base that will allow selling products, even if one of the clients violates contractual liabilities. The author has determined important factors for sustainable operation and development of the dairy cooperative marketing activities such as high: quality products conforming to European standards; close cooperation with consulting services (getting qualified support) can be very valuable for improving the quality and volume of sales; a wide product range of UHT milk fat content (milk must be in the range of other dairy products – cream, kefir, fermented baked milk, yogurt, sour cream, cottage cheese); implement sound policies and advertising public relations campaign; being a part of the organizational structure of qualified marketing service (or at least the responsible competent employee); constantly working on the development of the local market (for example, the supply of milk to schools in consultation with the cities and districts of the region); flexible pricing policy, including a differentiated system of discounts and payment conditions for different categories of consumers. Conclusions and directions of further researches. In order to develop and improve the effectiveness of current Ukrainian dairy marketing cooperatives a gradual expansion of the range of their services has been offered. In this case, the strategic goal of each of them should be the following: the formation of the most appropriate model in which the dairy cooperative has its own material and technical base, refines, sells dairy products and has expanded its customer base. In this case, the organizational structure of the cooperative must evolve gradually, taking into account its financial capacity. The results of this research can be used in further scientific research to substantiate the development of agricultural service cooperatives and practice of marketing dairy cooperatives.

Keywords: sales, agricultural service cooperatives, marketing dairy cooperatives

Cite as: Ryzhyk, I. (2013). The prospects of marketing dairy cooperatives development in Ukraine. Marketing and Management of Innovations, 3, 264-271. https://doi.org/10.21272/mmi.2013.3-23

This work is licensed under a Creative Commons Attribution 4.0 International License

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