Object of research: is a system of economic relations, in which market of milk and dairy products functions and development of regional dairy product subcomplex happens. The purpose of research: is development of theoretical, methodological and organizing basis of functioning of milk and dairy products market and grounding of its development parameters. Methods: economic and statistical, monographic, graphic, economic and mathematic, mathematic modeling, calculative and constructive, analysis and synthesis, comparisons, unity of historical and logical, expert estimations, system and diagnostic, structural and logical analysis. Theoretical and practical results: theoretical and methodological basis is formed by fundamentals of economic theory and systematic and dialectic approach as to study of economic processes and phenomena, which have been established in the system of milk and dairy product market functioning; scientific works, legal and normative acts of Ukraine concerning milk market regulation.Practical importance of the received results is in fact that their use makes it possible to increase the rate of milk market formation and improvement of relations between its all participants. Research novelty: for the first time methodology of forecasting of optimal amount of production is proposed; parameters of optimization of mount of milk processing and range of dairy products proposed by milk processing enterprises of the region are grounded; methodological fundamentals of estimation of elasticity of milk and dairy products demand are improved; algorithm of economic and mathematic modeling of optimization of forage production structure and production of milk at agricultural enterprises is improved; existing scientific works as to improvement of relations and mutual payments between agricultural producers, processing and trading enterprises are further developed; scientific approaches as to conceptual estimation of prospective changes in the functional structure of milk and dairy product market as wellas methodological fundamentals of estimation of influence of the determined indicators on the functioning of milk and dairy products mark and market conjuncture are specified; economic basis of formation of market funds of dairy materials in administrative regions and their division is developed. The degree of introduction: results of the research are accepted for the introduction at Main department of agro industrial development of Volyn regional state administration, Limited company “Torgovyy Dim Lyubart” in Lutsk of Volyn region, Ratne district state administration of Volyn region and APC “Samarivske” of Ratne district of Volyn region. Effectiveness: results of the research ground conception of increase of effectiveness of milk and dairy products market functioning by means of optimization of production amount, processing and range of dairy products, structure of forage production, im-proved relation between participants of the market, cooperatives formation. Sphere, field of usage: main department of agroindustrial development of regional and district state administrations, agricultural and milk-processing enterprises as well as educational process of agrarian educational establishment.
