The article deals with the economic substance of category "purchase price" and the mechanism of its formation on the Ukrainian market in milk and milk products. The process of pricing of raw milk in the context of the relationship between agricultural and processing enterprises. The basic factors influencing the purchase price for milk. The analysis of the dynamics of purchase prices for milk in Ukraine and some developed countries of Europe, and the structure of retail prices for these countries. The effect of VAT on the formation of the retail price of milk in different countries. Identify the main route optimization mechanism for setting purchase prices for milk in the context of sustainable development of rural areas.

Key words: price, milk farms, dairy enterprise.