Topicality. In Ukrainian society there is concern about the quality of dairy products produced by domestic producers. Dairy production is the most necessary in the diet of a human, especially at the child�s age. We cannot image the child diet without milk and dairy products. As the infant�s body is much more fragile and vulnerable to the quality and safety of the food, which he consumes, so the requirements to the quality and safety of dairy products need to be tightened, and the requirements must be increased. And it is precisely such the requirements that should apply to the development of economic entities that have the direct relation to the production, , maintenance and processes of milk processing.
Aim and tasks. The purpose of the article is to analyze and estimate the condition of the commodity market in the link of the dairy product chain, the sanitary state of milk being milked, volumes of milk supply to the processing enterprises, production and distribution of the dairy products by sales channel, problems and possibilities of providing rational needs and the level of consumption of milk and dairy products by the population.
Research results. Carried out complex analysis of the state of dairy industry and the raw material market in the link of the dairy logistics chain, the sanitary state of fresh milk, the volumes of milk supply to the extra grade processing enterprises, production and distribution of dairy products by sales channels.
Conclusion. The condition of dairy market and enterprises shows, that adopting legislative and regulatory measures and norms synchronized with European ones will not produce the expected results, unless supported them by real investment projects, aimed at developing the market sectors, and, first of all, the raw milk sector, which produces milk. The strategy for the development of the milk market should be based on the development of large-scale milk commodity farms, equipped with all the necessary infrastructure: feed-storage shops, veterinary services, milking machines and cooling, and most importantly quality laboratories.