X National Conference with International Participation
30 November, 2017
Premier Hotel Rus, Kiev, Ukraine
Organizers: Infagro, Union of Dairy Enterprises of Ukraine
The annual DAIRY BUSINESS conference is a platform for effective communication between leading dairy market operators. It provides opportunity to benefit from getting exclusive analytical materials on the dairy market of Ukraine and the world and make decisions on your strategy for business development.
This will be the 10th year in a row when Ukrainian and foreign dairy business operators will gather at the DAIRY BUSINESS conference, as they have always done -at the end of autumn. Such a meeting for most of them is a good tradition, summing up of the year and planning for the future. This is the chance to communicate with colleagues in person, not by phone. Organizers of the conference are trying to create the most favorable conditions for effective communication. Presentations of the leading dairy experts of Ukraine and their colleagues from around the world will give the opportunity to get new tips and ideas for developing dairy business.
This year the conference will focus on the following:
DAIRY INDUSTRY OF UKRAINE AND THE WORLD
Within the framework of this session the main trends of dairy industry of Ukraine and the world dairy market will be considered.
This year dairy industry of Ukraine and the world dairy market started to overcome the crisis. In Ukraine, the pace of falling milk production declined and supply of quality raw materials and milk prices increased. Efficient agricultural enterprises benefit from high profits. The export of dairy products has considerably increased. The price of dairy products has noticeably strengthened.
However, the purchasing capacity of Ukrainians is still have low and consumption of dairy products continues to shrink. Shortage of raw milk is a big problem. Dairy exporters have not recovered from the loss of the Russian market yet.
Board Chairmaan of the Dairy Union of Ukraine and government high officials will speak about acievements, problems and prospects of development of the domestic dairy industry.
In the current year, the demand for dairy products on the world market has recovered. Against the backdrop of the negative trend of the past two years, the growth of milk production in the leading dairy regions of the world has stopped and prices for dairy products have substantially increased. On some commodities (butter) they reached record heights. At the same time, huge intervention stocks of dry milk in the EU restrain general tendency of the price increase.
Vectors of the world dairy trade have considerably changed in recent years due to a set of readons, including Russia’s food embargo.
The recognised European analysts and experts from The Netherlands, Poland, Belarus, Russia, as well as from Kazakhstan, which is now one of the largest importers of Ukrainian dairy products, have confirmed their speaking at the event.
THE NEED FOR CHANGES – MARKETING, TECHNOLOGICAL, REGULATORY
Due to the European integration reforms in Ukrainian legislation and regulatory policy, a lot of changes have taken place in recent years. In particular, there are positive developments in control of safety of dairy products. After a long period of harmonization of Ukrainian legislation with the EU rules, the instruments to perform their controlling functions was obtained by the State Service of Ukraine for Food Safety and Consumer Protection. The state regulation of milk prices was abolished.
But there are also negative changes, especially in the state financial support of the industry. For example, Government withdrew privileges for payment of VAT given to agricultural producers, promising compensations for the loss of direct subsidies, but in practice these budget subsidies were scanty. There is a big problem with compensation for the costs of building and reconstruction of farms and reimbursement of interest rates on loans. It is urgent to change the officials’ attitude to the industry, otherwise, if reducing milk production continue, Ukraine will soon become a net importer of dairy.
A lot of attention in Ukraine is paid to the issue of falsification in dairy production. That is true, falsification exists, but its scale is not bigger than that in other food industry sectors. Therefore, too much attention to the problem that some associations and media devote to this problem is not always justified. Often they “add “falsified” fuel to the fire” which undermines reputation of respectable producers of dairy products which are absolute majority in Ukraine.
Current positive market changes are somewhat reassuring for the dairy industry, so many dairy processors postpone measures that are urgent for most businesses: technology upgrades, installation of up-to-date equipment, revision of the schemes of management and
marketing. After the long time of the crisis, fundamental changes in business are needed and now is the time to resume investment.
Well known domestic experts and representatives of the government will discuss the above-mentioned problems and possible ways of their solution at the conference.
DAIRY PROCESSORS: DEPENDENCE FROM MILK PRODUCERS AND TRADE
In Ukraine, there has always been a conflict of interest between dairy processors, milk producers and trading structures. Milk producers are always complaining that they are forced to work without profits due to the low milk purchase price. Processors complain about unfavorable market conditions, the draconian conditions set by retail networks and lack of proper demand from importers. Trading networks complain about a steady increase in dairy prices by suppliers and low consumers’ purchasing capacity.
But this chain is inseparable – the agricultural producer cannot operate without processor, and processor cannot operate without milk producer and trader. Problems in the relations of all market operators do exist, and it will always be so, but these problems can be smoothed in a certain way. It is necessary to learn how to find compromises, because the main thing is not the problem, but consumer of dairy products.
Milk and dairy producers and trade representatives will be discussing this issue at the event.
Welcome to DAIRY BUSINESS-2017!