Importance The article deals with the issues of improvement of the State support for dairy cattle breeding in the conditions of import substitution in the framework of the regional Program of Development of the Dairy Industry of the Penza Oblast for 2014–2016. Objectives The paper aims to study the peculiarities of State support for the industry through the analysis of current status of dairy farms of the Penza oblast and work out proposals on improving State support to dairy farms of the oblast. Methods For the study, we used monographic, abstract and logical methods of analysis. Results The paper describes the main factors determining the need for Government support in dairy cattle breeding and presents certain proposals on improving State support to the industry. Conclusions The paper concludes that in order to improve the efficiency of dairy cattle breeding, the methods for calculating subsidies per one kilogram of sold milk should be improved. It is advisable to allocate such amount of subsidies, which would bring the level of milk production profitability to 55–60 percent minimum.
Keywords: dairy, food security, State support, efficiency, subsidies
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