Business news from Ukraine

MILK PRODUCTION IN UKRAINE IN 2022 WILL BE REDUCED BY 13-16%

Milk production in 2022 due to the military invasion of the Russian Federation will be reduced by 13.3-15.9%, to 7.33-7.56 million tons from 8.73 million in 2021, the depth of the crisis in the industry will be determined by further development hostilities in the country and their geography, the profile association “Union of Dairy Enterprises of Ukraine” (SMPU) reported.
“It is unlikely that with the current development of the military situation, the decline in the production of raw milk will exceed 17%. Such a decrease will not lead to a critical reduction in the supply of dairy products on the domestic market, since the share of consumption reduction due to the migration factor is 18-20%,” – indicated in the forecast on the website of the organization on Friday.
She recalled that since the beginning of the Russian invasion, more than 4 million citizens of Ukraine have left the country, and about 10 million have moved to safer regions. This significantly reduced the demand for dairy products in the country, especially given the almost complete halt in its exports. Thus, due to the departure of some citizens, the average per capita consumption in Ukraine in 2022 will increase by 8% – from 212 kg in 2021 to 229 kg this year.
“For the dairy industry, the first days were also a shock: several international companies closed their milk processing plants, the established logistics schemes for the delivery of raw milk were violated, agricultural enterprises had nowhere to deliver raw milk. Farmers changed routes on the go, milk was delivered where the situation permitted, many raw materials were simply given away for free,” the SMPU clarifies.
At the same time, the enterprises that continued to work changed the range of their products to the most in demand in the conditions of martial law: butter, cheese, milk powder, long-term storage milk. In addition, such enterprises massively donated their products to feed the Ukrainian army, humanitarian supplies and other charitable purposes.
The SMPU clarified that the assessment of the prospects for milk production in Ukraine is becoming more difficult not only because of the uncertainty of the capabilities of farms and processing plants in the territories of active hostilities with Russian occupiers. Important factors that negatively affect milk production are problems with logistics (sales, delivery of feed, veterinary drugs, etc.) and a reduction in the number of cows directly in the combat zone.
“It should be noted that in the regions that are under temporary occupation (Kherson, Mykolaiv regions, the southern part of Zaporozhye) – the volume of milk production was not significant before, which was taken into account in the forecast calculations made by the SMPU,” the organization clarified in the message.
As SMPU previously reported, after the recession of the economy caused by the Russian invasion, 60-65% of milk processing enterprises have already resumed work, which, even in the conditions of hostilities, are able to provide the domestic market, taking into account the migration of part of the population abroad.

UKRAINE CAN EXPORT DAIRY PRODUCTS AND MILK TO KUWAIT

The Ministry of Foreign Affairs of Ukraine and the State Service for Food Safety and Consumer Protection have agreed with the competent authority of the State of Kuwait on the form of an export veterinary certificate for the supply of milk and dairy products to this country, the state food service said in a press release on Tuesday.
“The Gulf region, in particular Kuwait, is of interest to many Ukrainian food producers. I am pleased to announce that today we have created additional opportunities for them to earn money in this market thanks to the joint work of the Ministry of Foreign Affairs and the State Food Service. In the long term, this will also strengthen Ukraine’s position as a supplier of agricultural and food products to Kuwait,” Ukrainian Foreign Minister Dmytro Kuleba said.
The form of this certificate is posted on the website of the State Service for Food Safety and Consumer Protection.
“The work on opening new export markets is extremely important, since an increase in Ukrainian exports is a guarantee of the economic growth of our state,” Head of the service Vladyslava Mahaletska said.

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UKRAINE WILL EXPORT MILK TO ARGENTINA

The Foreign Ministry of Ukraine and the State Service on Food Safety and Consumer Protection have agreed with the relevant authority in Argentina on the form of an export veterinary certificate for the supply of milk and dairy products to this country, the service said in a press release.
“We are making every effort to provide Ukrainian companies with new opportunities for doing business and exporting their goods. Thanks to this work, Ukrainian producers have gained additional access to the large Argentinean market, where more than 40 million people live,” Ukrainian Foreign Minister Dmytro Kuleba said.
According to the service, in order to export to Argentina, Ukrainian dairy producers must be accredited by the National Service of Agri-Food Health and Quality of Argentina (SENASA). The Argentine side allowed, in connection with the COVID-19 pandemic, to conduct accreditation of production facilities of Ukrainian enterprises remotely, followed by a physical inspection of production facilities after the normalization of the epidemic situation and the restoration of international air traffic.
The head of the agency, Vladyslava Mahaletska, specified that the opening of the Argentinean market for Ukrainian dairy products is an important step towards strengthening trade ties between the countries. She recalled that the form of veterinary certificates for the export of collagen and gelatin has already been agreed with Argentina, while Argentine poultry, fish and seafood, fresh beef will be imported to Ukraine.
“Opening the market for the export of dairy products will expand our cooperation and create new opportunities for Ukrainian producers,” she said.

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UKRAINIAN DAIRY PRODUCTS ESPECIALLY BUTTER MOST OFTEN COUNTERFEITED

Milk and dairy products (especially butter) were most often falsified among food products in the first quarter of 2021, and the most common violation in the production of butter is the presence of non-dairy fats, the State Service of Ukraine on Food Safety and Consumer Protection said.
According to the agency, the second common type of violation this year is the inconsistency of food labeling.
The service clarified that since the beginning of the year, it has carried out 85 scheduled and 2,900 unscheduled inspections. As a result, more than 31 tonnes of products were withdrawn from circulation, including 6 tonnes of milk and dairy products, 4.7 tonnes of fish, 3.3 tonnes of poultry, 2 tonnes of meat and meat products. The department made 49 decisions to suspend the circulation of food products, transferred 11 cases to law enforcement agencies and issued fines to violators in the amount of over UAH 1.6 million.
“The food products that Ukrainian consumers buy must be safe and meet all legislative norms and requirements. We must protect consumers. Work in this direction will only intensify,” head of the department Vladyslava Mahaletska said.
As reported, the State Service of Ukraine on Food Safety and Consumer Protection in March introduced a unified quality standard for raw milk, within the framework of which the Milk Module was launched – software for the automatic collection of research results for dairy raw materials.
According to Mahaletska, the Milk Module calculates the level of total bacterial contamination and the number of somatic cells in milk raw materials. Milk producing farms and milk preparation points in nine regions of Ukraine are involved in the raw milk control program. The project is already being implemented in Kharkiv, Vinnytsia, Mykolaiv and Poltava regions, while Khmelnytsky, Donetsk, Dnipropetrovsk, Kyiv, Volyn and Sumy regions are ready for its launch.

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UKRAINE CUTS MEAT, EGGS, MILK PRODUCTION

Milk production in Ukraine decreased by 4.1%, to 8.02 million tonnes in January-October 2020 (excluding the temporarily occupied territory of Crimea, Sevastopol, the Joint Forces Operation zone) compared to the same period in 2019.
According to the State Statistics Service, 2.71 million tonnes of meat (live weight) were produced in the ten months, which is 1.2% less than in January-October of the previous year.
Egg production decreased by 1.6%, to 14.09 billion eggs for the reporting period.
According to the State Statistics Service, milk production in Ukraine in 2019 decreased by 3.6%, to 9.7 million tonnes compared to 2018. Egg production increased by 3.4% to 16.68 billion in 2019, and meat (live weight) by 5.3%, to 3.49 million tonnes.

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MILK PRODUCTION IN UKRAINE IN JAN-DEC 2019 DECREASES BY 3.7%

Milk production in Ukraine in January-December 2019 decreased by 3.7% compared to 2018, to 9.69 million tonnes.
According to the State Statistics Service, 3.48 million tonnes of meat (live weight) was produced in 2019, which is 4.8% more than in 2018.
Egg production in January-December increased by 3.4%, to 16.68 billion.
As reported, with reference to statistical data, milk production in Ukraine in 2018 decreased by 1.8% compared to 2017, to 10.1 million tonnes.
Egg production in 2018 increased by 4.1%, to 16.14 billion, meat (in live weight) by 1%, to 3.3 million tonnes.