Business news from Ukraine

DANONE WITH PARTNERS PLANS TO BRING NUMBER OF FAMILY DAIRY FARMS IN UKRAINE TO 206

9 March , 2016  

KYIV. March 9 (Interfax-Ukraine) – Danone, a large dairy producer in Ukraine, jointly with partners, plans to boost the number of family dairy farms in the country to 206 by late June 2017, Director of the purchase department at Danone Iryna Kukhtina said in Kyiv last week.

“We have an idea of creating 206 family farms by late 2017, and people can come to the farmer, see everything and take as a pattern,” she said, adding that today 60 farms have been created.

Kukhtina said that the total volume of the cooperative and family farm development project financing in the period from 2010 to 2017 would be EUR 6.5 million. At present, the third phase of the project focused on the creation of the large number of family farms with 10-20 cows is being realized. Farmers that are taking part in the project reconstruct their cow farms or build a new one for some 10 cows using own money, while equipment (milking, cooling equipment, drinking, lighting and ventilation systems) are provided as part of the project.

A total of 17 cooperatives have been created. Farmers can become members of cooperatives if they have at least five or six cows.

“Last week a first cooperative that consists only of family farms (five) with the number of cows from five to 30 appeared in the south. Young persons aged around thirty are involved in it,” she said.

She said that at present, the cooperatives mainly produce second class milk. It is planned that they will produce first class milk by the completion of the project in 2017 and will provide for 10% of raw milk supplies to Danone.

In June 2015, USAID has joined the project, and the project was extended to one year.

“We planned to open 96 farms in the third phase of the project, but when USAID joined the project, it was extended for one year, and its value grew by EUR 1.4 million. This includes the money of the Canadian government, our partner,” Kukhtina said.

Danone is realizing the project to develop family dairy farms and cooperatives in Ukraine jointly with International Charitable Organization Community Wellbeing with support of Danone Ecosystem Fund and the Canadian government, USAID via Dnipropetrovsk Agricultural Advisory Service LLC.