The article examines the current state of development of the animal husbandry industry in Ukraine and investigates the degree of seller concentration in the meat and dairy market. Diagnostics of the competitive environment in the animal husbandry products market was carried out and the main factors that exert a direct impact on ensuring competitive production of the aforementioned products were studied. It was established that the development of the industry is characterized by volatility and alternating periods of unprofitability and low profitability, which is caused by a combination of technological and economic factors. It was proved that crisis phenomena in the animal husbandry industry are caused by the decrease in investment attractiveness, lack of economic interest in manufacturing products; imperfect economic regulation of the development of the industry by the government; deterioration of the logistical status of agricultural enterprises. It was substantiated that the reduction in the number of small producers strengthens the position of high-tech enterprises, which leads to an increase in the quality of manufactured products and enhances their competitiveness.