The paper considers the economic principles of pedigree swine production innovative development in Ukraine. We consider substantiation as an expedient measure among the instruments of the state regulation, estimating the pig industry on the basis of evidence-based food safety requirements and determining the need for the studied product in accordance with the estimation calculations. It is expedient to focus the effective tools of state regulation on such assessment. The main task is to determine the required number of breeding sows in order to increase the total number of pigs in Ukraine to further ensure the required amount of pork consumption. It has been proved that the formation of competitive breeding herds that meet the industrial pig breeding requirements is a priority task for the industry in the medium term, due to signifcant lagging of the main indicators of domestic breeds productivity from the breeding material of the best breeding companies caused by the previous deep economic transformations, rupture of most production and technological chains, inappropriate provision of the commodity enterprises with crossbred young stock and lack of signifcant breeding achievements in the industry for the last twenty years. The low competitiveness of the domestic breeding base eventually led to a decrease in the number of pig breeds distributed in Ukraine and their further replacement by more efcient foreign genetic resources. We consider it expedient to differentiate powers between the Ministry of Agrarian Policy and Food of Ukraine, in particular, the Department of Livestock Markets, the State Breeding Inspectorate and regional departments of agro-industrial development through amending the legal acts regulating legal relations in pedigree livestock breeding. In particular, it is proposed to add the examination of breeding products and issuance of breeding certifcates to the responsibilities of the departments of agro-industrial development of regional state administrations. In order to create conditions for increasing the pedigree pigs breeding competitiveness in both domestic and foreign markets, it is advisable to: improve the system of subsidies for the purchase of young pedigree animals in order to stimulate demand for domestic material; to distribute the functions of scientifc and practical support of the livestock industry with domestic material; in order to optimize the cost of subsidizing the purchase of breeding animals, the state must clearly defne the critical effectiveness pedigree products purchasing, as well as to develop a mechanism for refunding the subsidies if the recipient has not achieved the targets.

Key words: state regulation, innovative development, pedigree swine breeding, efciency, competitiveness, agricultural enterprise.