FACTORS AND PECULIARITIES OF FORMING DEMAND FOR MILK AND DAIRY PRODUCTS
The aim of this study is to identify the main factors influencing the demand for milk and dairy products, and to study the peculiarities of its formation in the conditions of realization of import substitution policies. The author presents the dynamics of the volume of milk and dairy product consump tion in Russia and Krasnodar Territory. The author has analyzed the change of the purchasing power level of average per capita incomes in the region. Russia’s state statistics’ data were used to calculate the coefficients of elasticity of demand for milk and dairy products on the per capita income of the population of the Russian Federation for the years 2010-2015, in the context of decile groups of the population. The values of the total coefficient of elasticity and its dynamics were defined for the analyzed period. It was found that a 1.0 percent increase in average per capita money income of the population leads to a 0.25-0.30 percent increase in demand for milk and dairy products in the Russian Federation. This indicates a low income elasticity of demand. The author has confirmed the presence of seasonality in demand for dairy products and defined seasonality indices of physical volumes of butter sales by large and medium-size retail companies of Krasnodar Region for 2012-2014. Sales seasonality is shown on the graph. The author has defined the correlation of prices for dairy products in various stages of the distribution network in Krasnodar Region. The author has revealed that prices in milk and dairy product market depend on the season. On the basis of the pre-calculated comparable prices there have been calculated indices of the seasonal pricing for raw milk, butter, hard and soft rennet cheeses, sour cream and fat cottage cheese. Seasonality is illustrated graphically.