VASYL VINTONYAK, Director INFAGRO: What does the introduction of import duty by Moldova mean for Ukrainian dairy business?

imageMoldova’s monthly imports of Ukrainian dairy is about 700 t of fresh milk products and about 70-80 t of cheese. Cheap cheese Moldovans can buy in the EU, but they do not have the affordable alternative to our fresh milk dairy. They simply do not have enough raw milk to produce dairy products themselves. In this respect, Moldova depends on import, so they will be buying our milk.

Moldovan producers suggest that they can produce more products. Maybe in summer they will be capable to increase raw milk production and ramp up the dairy produce. But when the season is over, they will still bounce to current production volumes.

I think that Ukrainian government is fully capable to resolve the current situation in favor of our country, because Moldova is heavily dependent on imports and exports. Moreover, it is not just about dairy products.

The government of Moldova envisioned some reservations: duty does not apply to raw and dried milk. Now it is being supplied, though in small amounts. For Ukraine it would be a logical step to ban these supplies and let Moldova buy finished dairy products. It is also possible to increase some duties in response, for example, for wine materials, vegetables or fruit, as we are able to produce them in Ukraine. Then Moldovan government will possibly think about changing their mind.

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