OPTIMIZATION OF THE PRODUCTION AND ECONOMIC ACTIVITIES OF THE PROCESSING COMPANIES BASED ON THE DETERMINATION OF THE EFFICIENT PRODUCTION VOLUME OF MILK PRODUCTS

The paper analyzes the issue of providing people with food products, which is currently very important and determines considerably the economic component in the country development. The main issue in this problem is to keep milk and milk products production and consumption at a sufficient level. Over the last years, the decrease in the number of cow population in the farming industry is observed, which results in considerable frictions as related to raw materials purchase and processing that affects negatively the production and consumption of milk products and, consequently, the efficiency of the agricultural and processing enterprises. In modern conditions, the solution of the problem of economic relations between agricultural and processing enterprises on the issues of milk production and processing is the priority task in milk-products subcomplex.The authors carried out the analysis of actual production volumes of milk products on the example of a typical milk processing plant and proposed the mathematical economic model of optimization of milk production volume, which is aimed at maximizing the income of milk processing plants, minimizing the money and materials costs, optimum production capacity utilization of the processing plants and meeting the final consumer effective demand for milk products in modern business environment. The authors identified the categories of products occupying the largest share in the structure of monetary costs of producers and proposed the optimal structure of production of milk products that meets the needs of middle class consumers and the interests of the processing companies. Based on the research, the authors made the conclusions about the necessity to diversify the production process in order to improve the competitiveness not only of the products but also of the whole company.