One of the leading sectors of agriculture in Ukraine is livestock, which provides population with food as well as light and food industry with raw materials. The objective of the article is to study the activities of enterprises dealing with producing and marketing animal products in Ukraine. The level of satisfying the population's needs for high-quality products influences the food security of the country and each region in particular. This sector is a major producer of milk, beef, veal, pork, eggs, poultry meat, skins and other products that are essential to other economic sectors of the state. On the basis of conducted analysis the reasons for the decrease in sales, which led to the decline in industrial output, are revealed. It is found out that the major part of the products was sold to processing enterprises at prices higher than average. Ways of improving the efficiency of the livestock sector are suggested.