Importance The article discusses the development of the market of milk and dairy products in the context of import substitution. As the object, the article examines the dairy cattle and dairy industries of Russia and the Penza oblast. Objectives The article aims to show the major problems and solutions to and prospects of the development of the market of milk and dairy products. Methods For the study, I used the monographic, abstract and logical methods, and a method of analysis. Results Based on the analysis of dairy farms and dairy industry, I reveal the reasons for reducing the production of dairy products. I have calculated the demand for raw milk and dairy products to achieve self-sufficiency of the Penza oblast. I offer promising directions of improving the effectiveness of the dairy sub-complex of the Penza oblast; one of which is to create a production cluster. Conclusions I conclude that for the development of dairy cattle breeding, direct support is the most effective measure of State support.
Keywords: dairy cattle farming, milk industry, national food stuff security, State support, efficiency
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