Beginning of the new season does not make the milk operators happy. They have no markets to direct the surplus of milk.

Under conditions of lackluster world markets the importers either refuse to buy Ukrainian dairy products or value them at very low prices.

New sales markets which had been promised by officials, were not open. European Commission (SANKO) provided the report on last year’s inspections of Ukrainian plants for granting the permission of deliveries to the EU. Their conclusion is that everything is well, but Ukraine is still not ready for delivery of dairy products to Europe. The main reason is that the milk grade “extra” is not processed separately from other milk grades.

This is how it looks for now, then the commissioners still may find some other reasons, after all, milk quotas are already abolished in Europe and there is a surplus of their own dairy products.

The problem of deliveries to China remains unsettled too. During a year the authorities have promised to open this market, but there has been no progress in this direction. By the way, 12 Belarusian plants already received certificates for export of dairy products to China. It is not known when Ukrainian plants will receive the same certificates. Experts who were engaged in this issue, are discharged. In particular last week the deputy head of Veterinary and Phytosanitary Service of Ukraine Vitaly Bashinsky was dismissed under the “lustration”. He supervised also subjects of certification of the dairy plants.

Officials of the Ministry of Agriculture make laws, but there is no real help for dairy sector. In particular there is an idea to transfer farmers to the general system of taxation next year. So, in the long term there will be less news about building of new farms. At the same time the Ministry informs that about 100 new and modernised farms with total capacity of 45 thousand cows and 7 thousand heads of young animals will start working by the end 2016 in the country.

At present level of milk prices even started projects can remain unrealized. Investors do not see profitability of this business.

Vasyl Vintonyak, Director of infagro.com.ua