A cost of raw milk produced in Ukraine is constantly rising under the influence of a number of factors, while the purchase prices for it have fallen since the beginning of Russia’s military invasion of Ukraine, the Association of Milk Producers (AMP) said.
In its analysis of the milk market, published on the website of the association, it is noted that although this situation creates pressure on the market, however, since the second decade of April, it has been developing “in the tones of very restrained optimism.”
According to it, the average purchase prices for milk as of April 20 are: extra-class – UAH 10.13/kg, top-class – UAH 9.88/kg, and first-class – UAH 9.40/kg (excluding VAT). At the same time, in the country they fluctuate in the range of UAH 9.5-10.7 /kg (excluding VAT) for extra-class raw milk.
The association notes that the cost of milk production is constantly growing, which is influenced by several reasons at once. Since the beginning of Russian aggression in Ukraine, prices for fuel and veterinary drugs have increased significantly, and the blockade of the export of agricultural products from Ukrainian seaports deprives agribusiness of working capital, the report explains. In addition, in March, due to the war, the cost of milk was affected by a forced revision of the feed ration of cows, changes in the structure of the payment of wages to staff, as well as the transfer of part of milk free of charge in the form of humanitarian aid.
According to AMP, the issue of raw milk cost “so far looks like a snowball that accumulates in the absence of a sufficient level of purchase prices.”
The association assumes that in the near future the milk market in the country will develop under the pressure of the following factors: the nature and intensity of hostilities, the possibility of unblocking seaports and resolving issues of exporting dairy products.
“The market began to feel the demand for dairy products and improved sales conditions in the occupied areas. With the increase of demand and sales, we see an increase in the supply of raw milk. Of course, these are not pre-war prices, but not the prices of the first weeks of UAH 8,” AMP said.
The State Service on Food Safety and Consumer Protection has agreed with Libyan experts on the form of an export veterinary certificate for the supply of milk and dairy products, the State Food Service said in a press release.
“Less than two weeks ago, a very productive meeting with the Charge d’Affaires of Libya in Ukraine, Adel Benissa, took place at the State Food and Consumer Protection Service, and today we have very good news for Ukrainian dairy producers about the opening of the export market,” head of the agency Vladyslava Mahaletska said.
She clarified that the possibility of exporting sunflower oil, grain, fruit and berry products from Ukraine to Libya is being considered. The forms of international veterinary certificates for the export of cattle, poultry and products from it have already been agreed.
As reported, Ukraine in April agreed with Argentina the form of an export veterinary certificate for the supply of milk and dairy products to this country.
Ukrainian agricultural products in 2020 gained access to the markets of 12 countries. Some 35 export certificates have been agreed, two EU audits have been passed concerning state control over the production of fish, poultry and products made of them.
According to the State Consumer Service, in 2021, work continues to expand exports in various commodity items, including poultry, livestock, beef and pork, milk and dairy products, honey, apples, blueberries and cherries, legumes, onions, wheat flour, fish and fish products, reproductive material.
Egg production falls by 13.7%, meat by 6.2% in Jan-March – statistics
Sales of meat for slaughter (in live weight) in Ukraine in January-March 2021 decreased 6.2% compared to January-March 2020, to 799,600 tonnes, milk production fell by 4.9%, to 1.75 million tonnes, eggs – by 13.7%, to 3.24 billion pieces, the State Statistics Service has reported. According to the authority, as of April 1, the poultry stock in Ukraine declined compared to April 1, 2020 by 4.9%, to 190.7 million heads, cattle by 6.4% – to 3.13 million heads (including the number of cows that decreased 5.7%, to 1.67 million heads), sheep and goats fell by 5.2%, to 1.32 million heads, and the number of pigs increased 3.7%, to 5.99 million heads.
According to the State Statistics Service, the sale of poultry for slaughter by agricultural enterprises in the first quarter of this year did not change compared to the first quarter of 2020 and amounted to 158 million heads, the sale of pigs grew by 7.0%, to 1.21 million heads, cattle decreased 19.3%, to 76,500 heads, sheep decreased 29.1%, to 11,100 heads. During the same period, agricultural enterprises sold 21.3% fewer eggs – 1.86 billion pieces.
The State Statistics Service said that the production of eggs in January-March 2021 significantly decreased compared to January-March 2020 in Ivano-Frankivsk region, to 60.3 million pieces (a fall of 49.5%), Mykolaiv to 30.8 million pieces (a fall of 47.1%) and Kharkiv to 100.2 million pieces (a fall of 40.3%), but increased significantly in Cherkasy region to 193.6 million pieces (a rise of 29%)
According to the authority, milk production for the first quarter of 2021 decreased most of all in Rivne region – to 59,400 tonnes (a fall of 14.7%), Odessa region to 45,100 tonnes (a fall of 11.7%), Mykolaiv region to 43,300 tonnes (a fall of 11.4%), but increased in Ternopil region to 75,200 tonnes (a rise of 6.8%) and Khmelnytsky region to 131,100 tonnes (a rise of 3.9%).
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.
The State Service of Ukraine for Food Safety and Consumer Protection of Ukraine and the authorized body of Japan have agreed on the form of the veterinary certificate for exporting raw milk and dairy products to Japan, the service said on its website on Tuesday.
“We continue work towards expanding cooperation with international partners. This is very good news for Ukrainian producers interested in the export of raw milk and dairy products: the market of one of the largest strategic partners for Ukrainian food exports – Japan – has been opened,” the head of the authority, Vladyslava Mahaletska, said.
The State Food and Consumer Service said that the website has the example of a veterinary certificate for export to Japan.
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.