RISKS AND PROSPECTS OF ENTREPRENEURIAL ACTIVITY IN THE MILK PRODUCTION SECTOR

Abstract

The article presents a comprehensive study of the risks and prospects of entrepreneurial activity in the milk production sector in Ukraine under conditions of economic instability, military challenges, and the transformation of the agricultural market. The main groups of risks affecting the efficiency of the dairy business are identified: economic, production, technological, and institutional. A structured analysis of key threats is provided, including procurement price volatility, outdated equipment, energy supply disruptions, weak coordination of state support, and underdeveloped infrastructure. It is substantiated that the current risk management system requires an update of its tools, particularly through the implementation of agricultural insurance, digital production control technologies, development of cooperation, and farmers’ involvement in stable sales channels. Special attention is given to the development prospects of the industry: the growing role of family dairy farms, integration into local food systems, and expansion of exports due to improved raw milk quality and technological modernization. International experience in risk management in the dairy industry (based on examples from Poland, Canada, and EU countries) is analyzed, offering models that can be adapted to the domestic context. The author formulates practical recommendations for improving state policy in the field of milk production, especially regarding investment stimulation, support for innovation, and the creation of an institutional environment conducive to entrepreneurship in the dairy sector. The research results can be used to shape development strategies for dairy farms and as a foundation for improving agri-food policy under conditions of increased risk and uncertainty.