China opens the market for Ukrainian dairy products
China opened its dairy market for Ukraine, 18 domestic plants got the permissions for export one of these days.
The process of obtaining was too long – one and a half year from the introduction by China of obligatory certification for suppliers of dairy products.
Officials proudly declare the big done work. But actually if they had done something, Ukraine would have entered that market long ago. A striking example is entering of Chinese market by Belarus in spring, which does not especially need it, having a big Russian market.
So, now Ukrainian plants got the permissions, but they will hardly be able to use them in the near future. First of all, the season is over, the prices of potential for export products (SMP, WMP, butter) are considerably grown and become not competitive in China.
The next months Ukraine can export only rather big volumes of whey powder to this country. There will be, of course, small shipments of other products, even cheese, but this fact will not especially influence the market situation.
Generally, China does not rescue the Ukrainian milk operators and it does not compensate loss of Russian market in any way.