For to consider the issues connected with the regulation of milk prices,  first of all it is necessary to pay attention to the fact that today the milk purchase price from the manufacturer (individual sector) is the lowest one and  this fact undermines any motivation for keeping cows in households. That is confirmed by an annual decrease of number of cows to 80 thousand cows for a year. The second important issue is that, despite of the low purchases prices, the price for milk, yogurt, cheese, sour cream and other dairy products in the distribution network of Ukraine is too high, this is also confirmed by the undeniable fact - the level of consumption of milk and dairy products for 1 citizen of Ukraine in 1990 amounted 384 liters., and in 2012 - 204 liters.

On the way from the commodity producer to the trading network the milk passes through the hands of intermediaries.

Households sell milk outside the organized agrarian market. They sell it directly to the processing enterprises or storing organizations, but still in most cases to intermediary organizations.

Processing enterprises use the insecurity of the rural population for their purposes. They have a lot of intermediaries, who conduct stocking up of milk from the population, in such way reducing the actual income of the peasants to 25-30% due to artificial, groundless lowering of the purchase price.

Later, the price of the milk which was bought by intermediary structures increases to 15-20%, and during its realization, the cost increases to another 18%. That is why an overall increase in the cost of milk from individual sector to consumer   is an average of 41%.

The price during the processing of milk to butter, because of intermediaries, will increase in 2 times.

The realization of completed dairy products from processing enterprise to retail trade is also done through intermediary structures (trading institutions), which, as a rule, are recommended by commercial organizations, which sell the given products. However, depending on the assortment of the commercial establishment, appropriate additional payments for entering of dairy products into the sale in shops, the wholesale price of an enterprise on dairy products is growing to 25-60%.

We should also pay attention to carelessness of processing enterprises, which very often don’t follow the standards of production of dairy products.

Settlement mechanism of such contradictions exists in all countries of Europe and the world.

The fact that after Ukraine joined the WTO, a significant part of domestic agricultural commodity producers and processors have lost competitive positions in the domestic market because there is an asymmetric property of  relationship between potential partners in the field of agriculture, this is a confirmation of objective and expedient solving by the country of such problems.                                                                                                                                                                                                                                                      Thus, the average bound tariff on agricultural products in the EU is 15.9%, whereas the Ukraine while joining the WTO engaged to "connect" the tariffs for agricultural products at the level of 11.1%.