Ukrainian dairy farming is going through a critical period. The country has managed to halt the decline in milk production. There is a set of fundamental positive changes in structure of business entities. The yields of high-quality milk produced in agricultural enterprises continue to grow and this growth is faster than decline of milk production in households.
If this trend goes on, in five years all Ukrainian dairy industry will be provided with domestic high-quality raw milk. In medium term, Ukraine will again be considered as one of the world’s largest milk producers and dairy exporters.
At the same time, because of the worsening of the geopolitical crisis with Russia (the annexation of the Crimea, military operations in Donbass region) Ukrainian dairymen should rather be prepared for temporary deterioration of conditions for dairy business. Those operators who do not stop working actively under the crisis conditions, in medium term will get a chance for another strong round of dairy business development.
Ukraine should use its enormous potential of the country with exceptionally favorable conditions for the development of the dairy farming. Today, there are serious threats and risks in dairy business, but forecasts are encouraging.
Main topics:
- Production
- Purchase and processing
- Quality of milk
- Balance, distribution, consumption, trade
- Economic efficiency of milk production. Pricing trends
- Legislation and government support
- Outlook
- Trends of the global dairy market and countries of the Customs Union
The report contains 88 figures (charts, graphs, maps), 97 tables and in-depth analysis of the data presented, including description of activities of particular farms and enterprises, detailed regional data and nation-wide dairy industry indicators. There is also provided a forecast for further milk market development.
Volume – 218 pages
Price – negotiated
Contact: Tel. / Fax: +380 44 258 2502
info@infagro.com.ua
Main Findings
- Like some other industries, dairy industry of Ukraine has also suffered from the geopolitical crisis between Ukraine and Russia
- Since 90s the number of cows has decreased 3.3 times, milk production 2.3 times, number of dairies 3 times
- In 2012 Ukraine began recovery of dairy farming. In 2013 total volume of milk production was 11.5 million tons
- The number of cows is not growing. Cows’ productivity is increasing. For ten years it has grown by a third
- By 2018 total milk production in Ukraine is expected to grow by 5%, to 12 million tons
- In five years agricultural enterprises will increase milk production by 50-60%, households will reduce it by at least 10%
- In several years, the average annual cow’s productivity in farms will exceed 6000 kg
- In Ukraine there are more than 3 thousand of dairy farms
- The share of milk produced by 270 largest farms constitutes a half of the milk volume produced in farms
- In 2013 ten farms provided 200 thousand tons of milk
- Nearly a quarter of total milk production in Ukraine is provided by twenty holdings
- There are four patterns of milk purchase in Ukraine
- In Ukraine only 40% of milk is marketable (it has been 75%)
- During five years, the number of dairy processing plants may become twice less, a hundred will stay operational
- A half of all milk in Ukrainian dairy industry is processed by ten holdings
- The quality of milk purchased for industrial processing is improving
- Three-quarters of high-quality milk is bought up by a dozen of companies
- Agricultural enterprises increase milk sales for industrial processing. Households decrease it
- In Ukraine the actual volume of milk processed is less than the State Statistics shows
- Ukrainian dairy industry offers its citizens a glass of milk a day
- Over a quarter of milk purchased by dairy plants is exported from Ukraine
- In 2013, the prices for milk increased by almost a quarter
- Russian embargo made the biggest impact on the milk prices
- Devaluation of hryvnia (UAH) in 2014 protected Ukrainian milk producers from the collapse of prices on the raw milk market
- Starting 2015 Ukraine may stop paying out subsidies for milk (VAT)
- In July 2014 most of the laws that would allow export of animal products to the EU were adopted
- The state officials are again making plans of introduction of minimum possible purchase prices for milk
- World production of milk is approaching the mark of 800 million tons
- In 2015 the European Union is abolishing quotas in milk production
- Developing countries are rapidly increasing production of milk
- Russia will not be capable to increase its milk production in the short term
- Belarus has failed to succeed in fulfilling the state program for dairy farming development
- Kazakhstan produces only a half of raw milk required on domestic market
- Global milk prices are high