Substantivation of ways of milk processing factory’s efficiency raising based on costs' optimization

In terms of the complexity and high mobility of the processes, and the need to adapt to a rapidly changing environment, the problem of raising the efficiency of economic activity is becoming increasingly important. Cost management is becoming one of the main factors of increasing enterprise efficiency in competition because targeted cost management helps reduce production costs and to affect price levels, which in otherwise equal conditions makes it possible to maintain and strengthen one’s market position. The development of basic cost reduction arrangements, which when implemented result in an increase in efficiency, was performed in the following directions: the specification of the courses for state regulation of the production of milk and dairy products, mechanisms for the market’s self-regulation, and the improvement of finance management principles and methods in independent production. The implementation of common economic courses is mainly connected with the increase of state involvement in the development of agricultural complex as a whole, and the restructuring of the milk processing sector in particular. Currently, the most important measure to regulate and stimulate agricultural development and the refinement of agricultural production is financial support from the state. This is put in to practice by using the targeted program method, financial regulation (subsidizing interest rates through bank loans), and also by subsidizing the most costly agricultural sectors. In the current conditions of the milk industry’s development and restructuring, the most relevant are the implementation of sectoral arrangements aimed at cost optimization in this field. It is currently necessary to development integrated processes between sectors of the agricultural complex. This will allow for an increase in the industry’s economic efficiency in terms of the integration of agricultural and industrial businesses, a reduction in the loss of raw materials, the minimization of transport and other organizational overhead costs, an improvement in production quality, and an increase in workforce productivity. An increase in the dairy industry’s production volume must correspond with the consumption level of dairy products, increasing it to the recommended consumption rate by implementing the “School Milk” program, as well as other programs such as providing milk and dairy products to the military and the most disadvantaged segments of society. To optimize costs, it’s necessary to use internal reserves and cost reducing factors in milk processing enterprises to a significant degree. Therefore, it’s especially important to implement cost optimization measures that have production value in the dairy industry. The article examines ways to increase the efficiency of milk processing enterprises, and suggests a methodical approach to their substantiation on the basis of cost optimization measures.

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