Immediately after the start of full scale invasion of Russia to Ukraine, Dutch companies helped their Ukrainian partners supplying the food and materials of first need and offering staff a safe place in the Netherlands. Dutch business can definitely make even bigger contribution for long-term reconstruction of the Ukrainian economy and agriculture.

To provide support to survival and reconstruction of the Ukrainian agricultural sector, RVO together with a group of Dutch Companies* in the dairy sector decided to cooperate and start a project to support the dairy sector in Ukraine. The project is focused on both immediate support and contribution to future development of the dairy sector and the EU accession, preparing for bigger projects funded by donors.

One of the project directions that started in 2023, is Bulk Milk Sampling on Lepto H. Lepto Harjo is a zoonose which can cause abortion of pregnant women. In Ukraine, many women work on dairy farms, so preventing the spread of this disease will directly contribute to a safer working environment in the short term and on the long term will become part of an integral system of animal health monitoring.

Another project explores the options of attracting external financial support. Many farms in Ukraine have cash flow issues due to the war. They are caused by direct damage, lost sales, and low prices for milk and grains. The situation with every farmer is different, but all face same challenges. Unfortunately there is not yet a fund to compensate direct damage with grants. However there are opportunities for using export credits. To apply for export credit, business partners need to present financial figures and a business plan. Export credit is to be repaid including interest, and is definitely not free money. At the moment of writing this article we are waiting for the first application to see how it works in practice.

Last but not least, we are working together with RVO and the Netherlands Embassy in Kyiv on a project to develop ideas to be funded by donors. The focus is again on project that has immediate impact and help prepare the sector to be ready for EU accession and make use of selling meat and milk products at the attractive markets. We developed several ideas which we now pitching at several potential partners and donors. Among them:

1. Energy saving. In the past energy saving was not much of interest, because energy prices were low, but this has changed in Ukraine now. So energy saving immediately reduces energy bills, and on the long term contributes to energy / carbon neutral dairy farming. All big international players are committed to reduce carbon print of their production, and expect their supplier farms to undergo transformation in this direction. Together with our partners, the leading dairy magazine «Moloko I Ferma» we inform the Ukrainian farmers about the possibilities of energy saving, and we are ready to discuss individual approach with the Ukrainian farmers.
2. Feed efficiency. Even in the Netherlands there is room for improvement of feed efficiency at the dairy farms. It is picking up fast, because feed is about 50% of the cost price of milk in the Netherlands, in Ukraine it is even more. Saving on feed cost means immediate reduction of cost price, but when you think about Carbon Foot Print, Feed is crucial. So on long term feed efficiency is key to reach the goals set by all big international players on carbon.
3. Green energy. Production of biogas and solar energy on dairy farms reduced energy costs and is part of the strategy of energy neutral dairy production chain. Innovative Dutch solution of solar panels without glass and PFAs can be available for the Ukrainian farms. In case of fire, these panels do not pollute the fields around the farm with glass pieces.
4. Manure Management. Before the war fertilizers were cheaper and the value of manure as fertilizer on the field was underestimated. Now fertilizer is much more expensive and will most probably remain expensive. Proper management, storage and handling will be more important and will pay off. In the Netherlands we do have great experience with efficient use of manure in arable farming. We are ready to share it and even look into biogas as a source of processing and making additional income for the farmer.
5. Developing profitable dairy chain. On the one hand this means energy and feed efficiency to improved cost price, and on the other hand — access to attractive markets. To be able to approach international markets it is important to fulfill the highest standards of animal health and welfare and to have clear program for carbon and energy neutral production. With our group we can offer the solutions to become carbon and energy neutral and we also assist in practical ways to access attractive markets, for example by on farm processing of milk by skimming milk and concentration of milk to reduce volumes.
6. Beef chain. Prior to the start of the full-scale invasion, Ukraine developed export of live cattle. After February 2022, the sea routes for beef export were not available anymore, and only road connection to Europe was left. Setting up a chain of export of GMO and hormone-free beef from Ukraine to Europe or in transit via Europe can become a win-win solution.
7. Education and training. Due to mobilization many Ukrainian farms face shortage of personnel. There is need for practical training to educate people with the right skills. Also it is important to prepare specialists ready for EU accession and applying the European standards. A number of partners in our consortium are already active in this field and already do projects in Ukraine. This will support the development of the dairy and beef chain.

For more information please contact

René Kremers | Difco r. kremers@difco.nl;

Myron Pundor myronagro@gmail.com