The increase in population in the world has contributed to rising demand for food in general and beef in particular. In the near future the demand for beef in the world will grow even more, in particular by increasing demand in Asia. And it will be harder to satisfy.

This will decrease both production and consumption of beef in developed countries and growing - in developing countries. Beef’s market in USA characterized by a negative trend of decreasing consumption of beef per capita, due to the reduction of cattle. This trend to reduce the consumption of beef per capita observed in the beef market in Canada.

The beef market is the most problematic in Ukraine. Implementation deformed market relations, skewed procurement prices, loss of interest in the field of animal husbandry and feed shortages were the main reasons for its collapse. A similar situation was observed in the past. It is qualitatively different and therefore raises concerns but today. In terms of shortfalls beef and veal have problems with sales.

There are a number of problems in the functioning of the beef market. Had a negative impact on the qualitative and quantitative characteristics of the industry as ranching and development of agrarian sector.

In 2000-2014 years radically changed the structure of meat production. In particular, of the share of beef and veal decreased by 2.6 times (from 45.4 % in 2000 year to 17.5% in 2014 year ). This is the sector where the greatest losses occurred. This situation is due to a significant reduction in the number of cattle on growing and feeding (at 63.7% in 14 years). As a consequence - the decline in beef and veal.

Growing cattle over the years is not profitable for producers. According to preliminary data, in 2014 year unprofitability of cattle meat decreased slightly and amounted to 35.6% against 43.3% level in 2013.

In 2014 year continued previously noted, the trend of decreased production of beef and veal in Ukraine. Production of beef and veal in carcass weight in 2014 decreased by 3.5% compared to 2010 and amounted to 412.7 thousand tons. Slaughter output of beef and veal is 58.8%. Households continue to provide 3/4 of beef and veal in carcass weight. The share of households in total production ranged from 74.2% in 2013 to 76.2% in 2014 year.

It is important to emphasize that the main cause of the stagnation of the industry was critical losses raising cattle for meat and the reduction of its population. Demand for beef in the domestic market rather restrained due to low purchasing power.
We believe that a stabilizing factor can be exported in the market of beef. However, the number of countries which implemented Ukrainian beef is insignificant.

It is likely that beef will continue to lose market share in favor of meat of poultry and pork in the short term.

According to FAO, world beef production already in 2015 will decline by several percentage points to 58.7 million tons.
In view of this beef production in Ukraine and its export is very promising, provided the existence of fair purchase price and reliable markets. Within the framework of a free trade area between Ukraine and the EU in 2015 provided an indicative total tariff quota for beef exports from Ukraine 12 thousand tons. But its implementation is not yet possible due to the absence in Ukraine special permission. All these factors constrain the use of the export potential of Ukraine and the further development of the market of beef.

The sharp decline in the number of cattle in all categories of farms in general, and cattle on the growing and feeding, in particular, due to several factors. Undoubtedly, the most significant of them are fighting in eastern Ukraine, Crimea occupation and political situation. This is reinforced by an economic commodity disinterest in growing cattle. On the one hand, low purchase price and do not provide a simple reproduction of primary producers. On the other – high retail prices of beef and meat products generate trading profits, and reduced demand for products in connection with the low purchasing power of end users. Despite the importance of the cattle industry for the national economy, it indicates the actual state of crisis processes. It is not just reducing the number of livestock. Breeding animals and breeding stock depart on the meat plants. But that now meat processing company focused mainly on the processing of imported raw materials.

Expanding markets and increase exports of beef is an important strategy of the market that can provide stability and prospects of beef production in Ukraine.

Keywords: market, beef, cattle, the structure of production, demand, export potential.