Summer already begins, and operators are completely in the dark about the further development. Prospects of normal sales are not visible yet.

Prices of external demand fall. So, demand and the prices for milk decline also. Many questionsarouse: what to do and where the way out…

The farmers are indignant, still remembering recent milk price at equivalent of USD 0.50-0.60/l.

The situation could be another if milk production was reduced by approximately 10% in Ukraine. Then the country would not be dependent on foreign markets as exporter. But in that case Ukraine would get to other dependence on foreign markets, already as an importer. It is much worse. Than only farmers would bethe gainers, but processors and consumers would suffer very seriously. After all, Ukrainians buy less dairy products even at present prices. Generally, even at present volume of production Ukraine could be large importer of dairy products if consumer ability was high…

There are no preconditions on increase of world prices yet. So, there are not many ways out from difficult situation. It is necessary to wait. The culling, of course, may be increased, but then the farmers will lose everything.

If there were no war with Russia, the situation would be much better, but not easy either. In Russia the prices fall. Nevertheless, there is a small hope that this country will renew trade relations with Ukraine. In particular, one of these days Rosselkhoznadzor (Federal Service for Veterinary and Phytosanitary Surveillance) allowed renewing the deliveries of dairy products to Russia for two Ukrainian enterprises. At the same time, there is no confidence that indulgences of Russia will last for long. Someone got permission for trade, but someone lost even permission for transit through Russia to other CIS countries.

Renewing of trade with Russia was obviously not services of the Ukrainian authorities. They did not especially make efforts for that. They report about the big done work for entering of new markets of Asia and Africa, about trade prospect with the EU. Sometimes even ridiculous statements are sounded: ‘Ukraine doubled export of dairy products to the USA. Vietnam, Pakistan, the Republic of South Africa, Mongolia, and Afghanistan are appeared among importers.’ Of course, it is possible to increase export to the USA from 20t to 40t and to mention that it was doubled, but not increased just by 20 t. Well and other mentioned countries bought much more Ukrainian dairy products in the 90th, but then and now generally only very cheap milk powder and whey powder are sold there.

Only lobbying of several bills which at least do not hamper activity of milk operators may be considered as real help of authorities.

In particular recently the idea of populist deputy on fixing of minimal milk prices was rejected.

The profile ministry promised to allocate UAH 250 mio for purchase of cattle, building and modernisation of farms. Before the amount would look considerable, but now it will suffice only for several farms or even for one big project …

Officials even promise 50% compensation of rate of National Bank of Ukraine.

The Ministry of Agrarian Policy also declares against abolishing the preferential taxation on the VAT for farmers.

infagro.com.ua