This year was very difficult for Ukrainian dairy operators, as well as for whole country. It is not surprising, because there are war and economic crisis in the country, says Infagro.

Russia more than ever completely closed the borders for Ukrainian dairy products. The world market is fallen. Even in such difficult conditions work is going on, there are no mass closings of plants, no bankruptcies. Milk production is even slightly increased in the country.

What will the next year bring to Ukrainian operators? Unfortunately, there are no reasons to expect an improvement of the situation. Economic crisis will be aggravated. Purchasing capacity will become even lower. The situation on the world market does not promise good prospects in foreign trade either. As a whole, not all Ukrainian dairy plants and not all cows will survive in 2015.

At the same time there is a hope of improvement of the situation. Experts forecast a renewal of price growth in the world in the second half of the year. It may even happen that sanctions-wearied Russia will deign to renew trade with Ukraine. Only export-oriented plants will probably have profits next year, taking into account weakening of the UAH and the forthcoming impoverishment of Ukrainians.

Unfortunately, Ukrainian milk producers should not count on state support in difficult 2015. Even existing before an insignificant financial support is abolished in draft budget for the next year (additional payment for livestock, compensations for building and modernization of farms). Milk subsidy under VAT, which has been operated for 15 years, will also be abolished.

This year the authorities will not probably manage to correct mistakes concerning an expected ban on sales of milk and meat by households. The bill # 1499 for two-year prolongation of the moratorium on part one of clause 35 of the law of Ukraine «On safety and quality of foodstuff» is introduced. According to the law, sales and distribution of milk, meat and dairy products of home production on marketplace is forbidden. Considering large quantity of urgent laws, this bill will hardly be considered until the end of the year. But that is not so important, because the Law will hardly work from January, 1, 2015, and even from January, 1, 2017.

Taking into account the forthcoming structural changes and transfers of financing from State Veterinary and Phytosanitary Service to local authorities, there will be nobody to control quality of milk and meat.

Interest of the Ministry of Agrarian Policy to work will also be lowered, as new budget will cut down the financing by 2.5 times.

It is worth mentioning the new government intends «to close gaps in the budget» at the expense of additional import duties. They will be at 10% for foodstuff, including dairy products. Deputies did not support the idea in the first reading, but it may happen that their opinion will change, and the Bill will be passed. Import of dairy products is already declined essentially, and total 20% (existing now and additional new) duty can absolutely stop it. Well, and Europe in reply can take offense and then the promised way to European market may become absolutely close for Ukrainian dairy operators.