Importance High competition of importers in the milk and dairy product market increasingly impedes the process of making financial decisions and their implementation. In this respect, the article deals with alternatives, optimal options, and studies the effect on economic indicators of the existing milk processors' operations. There are no common approaches to forming an algorithm for financial decision making in entities that process milk for commercial purposes. Therefore the proposed practical approach is significantly relevant for the emerging milk industry at the current stage. Objectives The research aims at developing an algorithm to make financial decisions in milk processing companies, considering the existing trends for the dairy industry development. In this respect, the article addresses several tasks. The article examines opportunities of milk production in goat breeding centers as an alternative to cow milk production. During the research, I determine possibilities of financing goat milk supplies to milk processors' production facilities. I identify groups of innovative projects within the milk production and processing system. The research systematizes investment decisions on the development of the dairy industry in a long-run. I also evaluate the forecast of financial aid to the dairy industry and present optimal variants of cash flows per nature of financial decisions milk processing companies may take. Methods Using the conventional methods, the research reviews the goat livestock structure per region of the Russian Federation. It is advisable to consider the results in selecting sources of finance and determine the financial viability and feasibility of innovative projects in the dairy industry. Results The research results in the classification of investment and financial solutions, and the algorithm for making financial decisions in milk processing companies, which are of practical value to improve the mechanism for financial management of the dairy industry. Conclusions and Relevance I conclude that, considering the growth in and expansion of milk processing competition, it is reasonable and important to make internal financial reserves in milk processing companies for purposes of import substitution and innovative clustering, thereby using borrowings as the financial basis to a lesser extent.
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