News Archive
19.07.2010
Ukraine Milk Company Powered by 4,000 Cows and GE Biogas Engine
Cow manure is being converted to energy at the first biogas cogeneration plant in the Ukraine. The facility, which is powered by 4,000 cows and a GE (NYSE: GE) Jenbacher gas engine, has recently completed nine months of successful operation at the Ukrainian Milk Company Ltd., located near Kiev.
The excess power produced at the plant is being sold to the grid. The Ukrainian Milk Company, which produces milk for baby nutrition products, received the license for selling power to the grid based on the “green” tariff, which is being approved by Ukraine authorities. According to the law, the “green” tariff is “a special tariff for electricity generated at the power plants with use of alternative energy sources.”
The new combined heat and power (CHP) plant is powered by a GE JMC 312 containerized cogeneration model gas engine and is able to substitute the equivalent of 1.2 million cubic meters of natural gas annually and, therefore, is projected to reduce the equivalent of 18,000 metric tons of CO2. Once converted into biogas, the manure from the cows produces 625 kW of electricity and 686 kW of thermal output.
This is GE’s first order from the biogas plant construction company ZORG. The unit was sold to ZORG through GE’s distributor and service provider in the Ukraine, SINAPSE. “Based on the top service provided by SINAPSE during the commissioning and operation of the new GE CHP plant, we look forward to working with them again and using GE’s Jenbacher products for future projects we have planned,” said Igor Aksyutov, commercial director of ZORG Ukraine.
05.07.2010
Danone to invest in 23 dairy cooperatives in Ukraine
Danone-Ukraine in partnership with Heifer International Ukraine intends to invest €1,000,000 in the development of 23 agricultural milk cooperatives in Kherson, Kirovograd and Zaporizhia regions as well as the Crimea in 2010-2011. Director of Social Innovations of Danone (France) announced the intention at the press conference in Kherson.
Creation of milk cooperatives supported by Danone-Ukraine is one of the first projects at this level funded by the EcoFund Danone. Support from Heifer International Ukraine is supposed to be provided only at the initial stage of the project development.
The project is designed for 2 years. In 2010, ten cooperatives will receive financial support, including 4 cooperatives in Kherson region. Investment in the remaining cooperatives is planned for 2011. Danone has an intention to invest € 99,000,000 in another 20 similar projects in other countries around the world.
The cooperatives will be supported to create a closed cycle of production, which will ensure quality control of raw material at all stages of production - from pasture to the delivery of milk to the processor.
Twenty-three cooperatives were selected to participate in the project. Each cooperative will receive the equipment for storage and control of milk quality, equipment for artificial insemination. Additionally, some project participants (250 families - the cooperatives members) will receive milking equipment. In general, this project is aimed to involve around one thousand families that will become members of the cooperatives.
Danone Ukraine is one of the largest producers of dairy products in Ukraine.
19.06.2010
General milk production in Ukraine during January-April 2010 down 2.3%
According to the National Committee of Statistics, milk production in Ukraine during January-April 2010 totalled 3,006.1 th. tons, down 2.3 per cent from January-April 2009.
1 May 2010, the number of milk cows in corporate and individual sectors was 2,767,800 head - 110,600 head (or 3.8%) less from 1 may 2009.
|
|
General milk production |
Corporate sector |
Individual sector |
|||
|
|
th.tons |
% from 2009 |
th.tons |
% from 2009 |
th.tons |
% from 2009 |
|
Jan 2010 |
575.1 |
98.3 |
150.6 |
104.2 |
424.5 |
96.3 |
|
Jan-Feb 2010 |
1166.2 |
97.5 |
299.1 |
103.1 |
867.1 |
95.7 |
|
Jan-Mar 2010 |
2010.7 |
97.3 |
488.2 |
103.0 |
1522.5 |
95.6 |
|
Jan-Apr 2010 |
3006.1 |
97.7 |
686.5 |
101.9 |
2319.6 |
96.5 |
10.06.2010
Parliament of Ukraine postponed the introduction of a new subsidy mechanism for milk and meat producers until 2011
The Verkhovna Rada of Ukraine postponed the introduction of the new mechanism of budgetary subsidy payments per cow until 2011, which was supposed to be in use in 2010, instead of subsidizing producers of milk and meat through the meat and dairy processing enterprises.
The replacement of subsidy payments for farmers for milk and meat delivered through processing enterprises for direct subsidies for cow owners from the special fund of the state budget was envisaged by the state budget for 2010. According to the Law on State Budget of Ukraine, meat and dairy enterprises were to pay the value added tax (VAT) into a special state budget fund for future payment of subsidies per cow, available on January 1, 2010.
So far, the subsidy mechanism for farmers has been valid according to which the VAT from dairy product sales by milk and meat processors is not transferred to the budget but paid to the producers in the form of grants depending on the amount of milk and meat delivered for processing. Meat and milk processing companies have repeatedly appealed to the state administration to maintain in force the old mechanism of subsidies.
02.06.2010
Consumption of dairy products in Ukraine during the years of independence has decreased by 60%
‘If in 1990 an average Ukrainian consumed 373 liters of dairy products per year (in milk equivalent) in 1995 - 244 liters per year, in 2009 this figure (Goskomstat) decreased to 213 liters per capita.
The highest rates of milk consumption are typical for EU countries (89.3 kg per capita) and USA (82.6 kg per capita). Absolute leaders in consumption of milk per capita per year, for example, are the countries of Western Europe - Netherlands (37.6 kg), France (35.4 kg), Germany (32.6 kg) and Spain (27.5 kg). Ukraine, with its 9.3 kg per capita, confidently takes a middle position. For example, in Kazakhstan, the annual consumption of milk is only 2.7 kg per capita.
According to estimations, in 2009 milk processing factories marketed approximately 514 tons of liquid milk - 10,8 liters of product per capita into domestic market (pasteurized or sterilized milk). Dairy products were marketed in amount of 493 thousand tons or 8.9 liters per capita, curd - 88 thousand tons (1.9 kg per person), rennet cheese - 125 thousand tons (2.7 kg), butter - 86 tons, spread - 85 thousand tons, milk cans - 195 million standard cans.
It should be noted that the Ukrainians have a different attitude towards dairy products. Thus, traditional dairy products (milk, sour cream and kefir) are considered to be basic products, while modern category of sour dairy products (yogurt and curds with fillers) is still considered to be a passing fad to some extent.
According to experts, meat for the Ukrainians is more accessible at a price than milk now. Today, a kilogram of cheese is equal to one and a half kilogram of pork at a price. That’s why more frequently Ukrainians prefer relatively cheap meat to expensive dairy products.
20.05.2010
Ukrainian Parliament introduced a subsidy for milk and meat producers per cow in 2010
The Verkhovna Rada introduced subsidies for milk and meat producers per cow, owned on January 1, 2010. This is stated in the law "On State Budget of Ukraine for 2010" passed by Parliament on April, 27 and signed by President Viktor Yanukovich on April, 29.
The new mechanism implies that milk and meat processing companies will transfer VAT from the sale of their products to a special fund of the state budget, and then, this amount will be paid to the producers who delivered their milk and meat for processing.
Now, however, this subsidy will be paid per cow, owned by the producers on January 1, 2010, rather than the amount of milk and meat delivered for processing.
In 2010, the total amount of subsidies paid from the state budget is expected at UAH 1.35 billion level.
As it was reported earlier, the Ministry of Agrarian Policy, producers and processors of meat and milk requested the authorities to maintain the current procedure to support agricultural producers via the mechanism of accumulation of VAT while selling milk and meat to processing companies and to postpone the introduction of the new mechanism per cow till 2011.
03.05.2010
Ukraine doubles exports of dairy products
Kiev,May. Exports of dairy products from Ukraine doubled in January-March 2010, whereas imports fell by 130%, Deputy Director General of the Ukrainian Agrarian Confederation Oleksandr Yaroslavsky has said.He said that exports of dairy products had grown by 50.4% over the period to USD 72.2 million. Exports have grown due to an increase in cheese exports (23%) and whey exports (2.9 times), and also due to a rise in export prices, he said.
Imports of dairy products plummeted by 2.3 times to USD 10 million due to a significant reduction in imports of condensed milk (44%) and animal oil (67%).
26.04.2010
Milk Prices in Ukraine: Seasonal Fluctuations
Since mid March, the reduction in raw milk prices has been observed. Though, currently the prices are showing a relative stability. Milk prices for corporate sector are settled down at the level 3.0 UAH/kg. Milk prices for individual producers keep on getting down slightly.
* Milk prices for individual sector are presented in UAH/Liter
According to milk processors, reduction in milk prices will continue till May. During May-June there will be certain stability, but then from July-August the prices will start increasing for corporate as well as individual milk producers.
19.04.2010
BUTTER SUPPLY INCREASES IN UKRAINE
In process of increase of raw milk deliveries, the supply of butter has grown also in Ukraine. But demand for these goods is rather weak. Almost nobody wishes to buy the large consignments of goods. Therefore significant reduction of prices is observed in the market. At the same time variation of prices is still very big. Buyers have already started to ask the prices below 30000 UAH/t.
Certainly, import is weak. But export becomes already interesting. After all butter of Ukrainian origin became cheaper than the goods from Belarus. Butter export can be avoided, if Ukrainian officials start the promised intervention purchases of this product. Decline of the prices can be stopped also at the expense of activation of purchases for stockpiles. But such purchases will be fulfilled only from second half of May.
07.04.2010
Milk prices in Ukraine are getting down
Milk prices in Ukraine are getting down due to seasonal increase in raw milk supply in the market. Milk processors predict further milk price reduction which can be explained as their attempt to enhance their profits after rough winter time when milk prices were very high because of raw milk deficiency. In winter most of them worked with minimal profit and some of them could even hardly break even.
Reduction of milk prices can have a negative impact on dairy farmers especially on those who recently have made investments into dairy business.
* Milk prices for individual sector are presented in UAH/Liter
29.03.2010
General milk production in Ukraine during January-February 2010 down 2.5%
According to the National Committee of Statistics, milk production in Ukraine during January-February 2010 totalled 1,166,200 tons, down 2.5 per cent from January-February 2009.
1 March 2010, the number of milk cows in corporate and individual sectors was 2,750,500 head - 117,400 head (or 4.1%) less from 1 March 2009.
|
|
General milk production |
Corporate sector |
Individual sector |
|||
|
|
th.tons |
% from 2009 |
th.tons |
% from 2009 |
th.tons |
% from 2009 |
|
Jan 2010 |
575.1 |
98.3 |
150.6 |
104.2 |
424.5 |
96.3 |
|
Jan-Feb 2010 |
1166.2 |
97.5 |
299.1 |
103.1 |
867.1 |
95.7 |
22.03.2010
Dutch dairy experts conducted SWOT-analysis on Ukrainian dairy farms
1-5 February 2010, Dutch dairy experts conducted SWOT-analysis on the dairy farms in Chernigiv region in the context of Dutch-Ukrainian project Infomoloko. The Dutch (Jan Bakker, one of the leading dairy experts in the Netherlands, and Rudie Brock, dairy consultant and assistant manager of international projects of the Friesian) closely investigated strengths and weaknesses, opportunities and possible threats of milk production at three farming enterprises – PISKIVSKE, SHEVCHENKO and NYVA – which are the members of the Association of Ukrainian Milk Producers.
During the SWOT-analysis the Dutch focus was on:
- feeding (ration formulation, balanced rations, feed quality)
- housing (cow comfort, hygiene)
- management of groups of cows
Additionally, Ukrainian producers together with Dutch consultants discussed a set of questions that are specific for each individual enterprise.
SWOT-analysis experts worked out recommendations to solve the problems taking into account specific features of the farms - animal health status, cow productivity, barn design etc.
Obviously, experts’ advice and recommendations are only one little step to achieve the goal and obtain the result. The Dutch specialist said, “We will go home and you will stay here to implement everything we have been talking about. The future depends on the people working on the farm.”
16.03.2010
Ukrainian Dairy Market: Seasonal Price Growth for Raw Milk
End of February and beginning of March are marked by a slight growth in milk prices. Milk prices for the milk produced by the corporate sector increased at the average by UAH 0.2 per liter. The biggest increase is observed in the North and East in Ukraine – up to UAH 3.8 per liter, the highest price being UAH 3.85 per liter in Donetsk region.
The lowest price for raw milk is traditionally paid in the Crimea where local processing companies use their monopolistic position because of delivery problems to other regions. In the Crimea, the milk price is UAH 2.5 per liter for the corporate sector, and UAH 2.2 – 2.3 per liter for individual producers. Obviously, the milk prices for individual producers are the same as in the other regions of the country and big farms are deprived of income from milk sales. However, corporate sector is able to organize milk deliveries to neighboring Kherson region where milk price is UAH 3.3 – 3.5 per liter.
In general, milk price in Ukraine for the corporate sector rose up to 7% or UAH 0.2 per liter over the past two weeks. Price growth is explained by two main factors: seasonal milk production decline and global increase in skimmed milk powder.
03.03.2010
Ukrainian Dairy market in January 2010
Since the Verkhovna Rada of Ukraine adopted the law on amendments of some laws of Ukraine regarding the support of agro-industrial complex in the conditions of the world financial crisis (#1782-17) on December 22, 2009, Ukrainian processing companies have stopped VAT payments to milk and meat producers which have resulted in extremely high raw milk prices.
In Ukraine, average raw milk price rose by 48% as compared to November 2009. During the last decade, milk prices have been going up slowly (except for milk prices for individual milk producers in Western Ukraine).
Average milk prices in Ukraine at the end of January were:
corporate sector – UAH 3,200 per ton (or 33% - 45% more from average autumn prices 2009)
private sector – UAH 2.39 per litter (or 27% - 32% more from average autumn prices 2009)
Accordingly, retail prices for dairy products were higher:
whole milk 22%
fermented milk products 20%
cheese 42%
butter 21%
09.02.2010
Ukrainian deputies decided to support cows – pigs and poultry are doing well
Ukrainian deputies decided to support cows – pigs and poultry are doing well
The deputies decided to support agricultural producers, but in a new way. After he Constitutional Court of Ukraine put a veto on the law to support agrisector, the Verkhovna Rada of Ukraine adapted a new one. Now beef and milk producers will get subsidies through a special budget fund but not from processing companies as it used to be before. The experts don’t approve the new system: they doubt if the producers will get this money.
Beef and milk producers are said to receive fixed subsidies per cow. A special budget fund will be created for the processing companies to transfer their VAT there. The subsidies from the fund will be paid directly to agricultural producers. According to the previous system milk processing companies assigned 20% from delivered raw milk directly to farmers. Analysts are very pessimistic if a new system will work better than the old one.
Additionally, the new law includes subsidies for cows only – that is for dairy and beef cattle. It means that pig and poultry producers won’t receive any subsidies, they are said to develop intensively without any support.
At the moment, the mechanism to transfer subsidy funds has not been approved yet and agriproducers have to wait.
26.01.2010
III Ukrainian Dairy Congress in Kyiv
Since 2008, it has become a good tradition for DYKUN GLOBAL CONSULT – one of the biggest agri consulting companies in Ukraine – to organize annual dairy congresses. February 25-26, 2010, III UKRAINIAN DAIRY CONGRESS: UKRAINIAN DAIRY BUSINESS – SUCCESS IN SPITE OF CRISIS is held in Kyiv. The aim of the congress is to provide a platform for accelerating the implementation of new technologies in dairy production in Ukraine and to facilitate the exchange of ideas within the industry. III Ukrainian Dairy Congress will unite the best Ukrainian farmers, national and foreign experts, who will discuss major dairy industry issues, share experience, determine ways to develop business in future and reveal the secrets of success.
The event is open for everyone who is interested in dairy business in Ukraine.
18.01.2010
CCU canceled support for farmers
The Constitutional Court of Ukraine recognized that Law of Ukraine “On amending some laws of Ukraine concerning the prevention of negative effects of the global financial impact on the development of agro-industrial complex” from February 4, 2009 # 922-VI, does not meet the Constitution of Ukraine. The decision of CCU abolished by a right for processing enterprises to send the sum of the tax value-added, which must be paid to the budget for the payment of subsidies to agricultural producers.
The decision of the Constitutional Court of Ukraine on the abolition of subsidies to milk producers will lead to a drop in cattle and higher prices for milk.
According to the expert, the decision of the Constitutional Court of Ukraine from November 24, “virtually wiped almost the only effective way to support the Ukrainian farmers. They will no longer receive subsidies amounting to 20%, resulting in a sharp increase in the cost of milk on the market and cause significant blow to the industry”.
“Such situation further sharpens the crisis in dairy industry, which leads to the decreasing of total number of cattle in Ukraine. If the state regulatory measures are not been urgently taken, the deficit of milk will become truly alarming proportions”.
11.01.2010
President of Ukraine signed the law to postpone the ban on sale of homemade dairy and meat products in public markets
According to the report of press-service of President of Ukraine, Viktor Yushchenko signed the Law of Ukraine #1665-VI amending Clause 1 of Section 11 of the Final Provisions of the Ukrainian law on the safety and quality of foodstuffs in connection with the sale of homemade dairy and meat products in public food markets as well as courtyard`s slaughter products.
As it was previously reported, the law #1665-VI amends the existing law on the safety and quality of foodstuffs postponing the implementation of the ban selling unprocessed milk and homemade cottage cheese, carcasses or parts of carcasses in public food markets for 5 years, namely, from January 1, 2010 until January 1, 2015.
According to this, the Cabinet of Ministers of Ukraine (CMU) in 3-month period will develop and approve the national program on establishing the points for milk collection and slaughters for animals, which are kept by private household plot owners.
Additionally, CMU will appropriate the funds for the program in the draft budget on an annual basis.
21.12.09
Dairy Producer Ukrproduct Witnesses Significant Slowdown of Ukrainian Economy in H2 2009 but Expects Growth in Sales
Kiev, 8 December, 2009 – Ukrproduct Group Ltd, one of the leading producers and distributors of branded dairy products in Ukraine, today provided the following pre-close trading update for the year ending 31 December, 2009 ahead of announcing its full year results in April 2010.
The Group continued to witness a significant slowdown of the Ukrainian economy in the second half of 2009. The Group’s sales during the second half are expected to be not less than in the first half of the year. Full year sales are anticipated to be below the previous year, impacted by a devaluation of the local currency against GBP.
Ukrproduct benefitted from strong demand for butter, the largest product group in terms of sales, as a result of the continued pressure on supply volumes in the market, and was also able to increase prices in November and December. As such, the Group anticipates generating growth in sales for 2009.
The Group also gained from consumer preferences switching back to processed cheese from hard cheese, due to seasonality factors, as well as the growth in prices of hard cheese in November, although these remain at a level below that seen at the start of the year. As a result, the Group’s sales of processed cheese are expected to have increased in the second half, compared to the first half of 2009. However, full year sales are likely to be below the previous year.
Ukrproduct’s sales of hard cheese in the second half were expected to be below the first half of 2009, due to lower production volumes in response to price dumping by competitors in the local market in the first half. The full year sales are expected to be below 2008.
The Group is likely to deliver double digit growth in Skimmed Milk Powder (“SMP”) sales in the second half of the year, compared to the first half, following a recovery in the market and, starting from October, a significant price increase. Sales for the full year in the SMP segment are expected to be up year on year.
Ukrproduct has continued to realign its product mix to take advantage of the growth in consumer demand in more affordable market segments. In addition, the Group strengthened its position in the premium market segment by expanding its offering and launching new products under the premium “Molendam” brand, including cheese in bricks, sausage cheese and spreadable cheese.
The Group’s cost reduction measures introduced in the second half, including the closing of Zhmerinka plant and optimisation of its production throughout the Group, have generated measurable savings. Management expects the Group’s capital expenditure for the year to come below its projected level of GBP 1 million in 2009 at GBP 0.7 million. Capital expenditure for 2010 is projected to be held at the 2009 level.
Furthermore, the Group’s Administrative, Selling and Distribution expenses declined in the second half, compared to the first half due to the salary freeze and optimisation of distribution costs, and are expected to decrease year on year in 2009. However, Ukrproduct has increased its bad debt provisions as it continued to witness challenging trading conditions in Ukraine with a number of retail customers and distributers going out of business. The Group also witnessed a sharp increase in raw material prices, particularly raw milk, in November.
Ukrproduct’s gross profit in branded products segment may decline in the second half, compared to the first half of 2009, largely as a result of the rapid increase in prices of raw milk and following the switch in consumer preferences to mass market brands. However, the Group anticipates generating positive growth in gross profits in its SMP segment in the second half of 2009. The Group’s gross profit for 2009 is expected to come below 2008, while Ukrproduct continues to realign its product mix in the branded products segment.
Overall the Group’s profit after tax in the second half of 2009 is anticipated to fall below the first half of the year. Ukrproduct expects its full year result to be below that recorded last year.
Despite the current challenging conditions, Ukrproduct’s financial position remains stable. The Group’s cash levels are sufficient to meet current debt obligations in the short and medium term. In addition, the Group has access to additional banking facilities if required.
Management is confident that the Group can deliver on its stated strategic objectives for the future and fully realise savings from optimising its production in the next year.
11.12.09
Ukrainian dairy production is predicted to decrease in 2010
Production of fluid raw milk is expected to decline by 2 to 3 per cent in 2010 as a result of a decrease in dairy cows. Although productivity is expected to grow marginally the drop in number of cows will undermine milk production growth, the report added.
Furthermore access to the Russian export market is expected to remain limited in 2010. Poor raw milk quality means industry will not be able to compete in world markets.
The report went on to say that overall consumption of dairy products (both produced in households and industrially) decreased in 2009 by 8-12%.
Consumption of staple dairy products (butter and hard cheese) remained close to 2008 numbers, while consumption of whole dairy products decreased by 20-30%.
Industry experts notice a significant shift in consumer preferences toward cheaper soft and hard cheeses, yogurts and home-made sour-milk products.
In addition the report said exports of Ukrainian dry milk products collapsed in 2008-2009 and are expected to remain low in 2010 due to a shortage in raw milk.
27.11.09
Milk production costs in Ukraine are lower than in Europe
Milk production costs at agrarian enterprises in Ukraine are lower than in most countries in Western Europe. However, the revenues from milk production were at European level in 2008.
At the same time, positive profitability doesn’t seem to have long-term character in the conditions of producing the milk of comparatively low quality in Ukraine. Today the import of dairy products as well as high-quality raw milk from nearby Belarus has been growing. In addition, the economic recession and decline in milk production in Ukraine force the producers of milk to follow well considered production stratege and accurately choose production technology.
18.11.09
Ukrainian processors have more confidence in high-quality milk from large-scale dairy producers
The share of individual milk producers in common dairy production of Ukraine remains at the level of about 80%, but the amount of the milk which goes to the processing plants has been decreasing. According to the State Department of Statistics, last year the share of individual producers in milk deliveries to processing plants accounted to 63%. Currently, this indicator has decreased to 54%.
In spite of the fact that average price for milk from farming enterprises is by half higher than the price for individual producers, dairy companies work more intensively with big milk producers. In fact, there are some differences in the structure of raw milk purchase in different regions in Ukraine. In western regions the share of individual milk producers is higher than in eastern, northern or central ones. However, the tendency remains unchanged.
The share of milk produced by large-scale dairy producers has increased by 9% for 9 months this year. At the same time, the amount of raw milk sold by individual producers decreased by 25%.
Gradual shift of Ukrainian milk processors to high-quality raw milk and safety makes the dairy industry more competitive at the international markets, and improves its image among the domestic consumers.
10.11.09
Milk prices increasing in Ukraine
Favorable conditions at the market of dairy products result in increasing raw milk prices. On the one hand, dairy producers can expect substantial increase in raw milk prices. On the other hand, Ukrainian experts claim that milk supply hasn’t decreased in comparison with the previous year. According to State Department of Statistics, in Ukraine milk production accounted to 9.2 million tones during the first three quarters - only 1.1% less as compared to the same period of the previous year. Although milk production in Ukraine doesn’t seem to decrease, still the amount of milk delivered to processing plants is 14% less during the same period.
Are the officials from the State Department of Statistic right or wrong? Doesn’t matter what the answer could be, milk prices are increasing in Ukraine. In the middle of October, milk prices for big dairy producers were UAH 1.9-2.5 per liter.
26.10.09
Ban on sale of homemade dairy and meat products in public markets should be postponed by 2012, according to Chairman of the Verkhovna Rada, Ukraine’s parliament, Volodymyr Lytvyn
Commenting on the law banning the sale of homemade dairy and meat products at food markets, which is to come into effect as of January 1, 2010, the speaker said that «a solution to that problem will be found by the end of October.»
«Verkhovna Rada should make a decision putting off the ban at least until 2012," he said.
He noted that the parliament had registered a bill suggesting the ban not be introduced until 2015.
A corresponding bill amending Clause 1 of Section 11 of the Final Provisions of the Ukrainian law on the safety and quality of foodstuffs in connection with the sale of homemade food at foods markets, which envisaged the rescheduling of a ban on the sale of such foodstuffs until 2015, has been registered in parliament.
According to the explanatory note to the document, the law on safety and quality of foodstuffs foresees the introduction as of January 1, 2010, of the ban on the sale of home produced milk and homemade cottage cheese, as well as slaughtering cattle, poultry and rabbits in numbers exceeding five head per day if it is not done at a licensed slaughter house registered by a veterinary service.
21.10.2009
CESEIN MARKET IS INACTIVE
In second half of the month the situation remains uncertain in the Ukrainian casein market. Demand for the goods is weak, and range of the prices is very wide. In September Ukrainian manufacturers have not particularly lowered the production in hope of good profit earning. They have lost nothing, but only because the price for butter has grown considerably, but the prices for casein in most cases remained at the same level, and even lower. It is difficult to forecast the further development of Ukrainian casein market. In September it was easier to work for Ukrainian vendors. In Belarus, the basic competitor, there was very high indicative price for casein. Traders refused to buy such casein. And it is understandably, taking into account the possibility to buy it cheaper in Ukraine.Now Belarusian officials have allowed to lower the price for casein to 5500 USD/t. Now a part of potential buyers of Ukrainian casein will go to Belarus.
12.10.2009
Milk prices will increase
Growth of prices for dairy products will definitely result in the increase of milk prices. Obviously, individual producers will not be paid UAH 2.5 per liter of milk produced, which was promised by the Prime Minister. However, in winter some of them will possibly sell raw milk at a price of UAH 2.0, but most individual producers will not get more than UAH 1.5/l. Furthermore, there is no clear answer to the question about VAT subsidies for 2010. The prices will increase, but later on, and in autumn milk processors have raised prices for raw milk a little. The average milk price for individual producers is considered to be UAH 1.0-1.2 per liter and UAH 1.8-2.3 for farming enterprises in September.
04.10.2009
Ukrainian dairy product producers are switching from butter to cheese
The production of butter in Ukraine has decreased by 20%, and milk processing companies are switching to cheese production. According to Ukrainian milk processors, butter production is not profitable and most of them turned to cheese. As a result, the butter produced by big processing companies has already disappeared from the shop shelves; smaller processors are standing in line.
The situation is favorable for importers. Since the beginning of the year, about 14.000 tons have been bought from Belarus. For 6 months of 2009, 500 tons have been imported from other European countries, which is eight times more than the import for the whole year of 2008. On the shop shelves consumer can see now butter produced in Finland. It is quite different in taste, color and smell from Ukrainian butter.
It is a paradox, but at the same time European interest in Ukrainian milk is getting up. Europeans have already been inspecting raw milk base. Obviously, Europeans would buy our cheap milk, process it into butter and sell it at world prices to Ukrainian consumers.
The prices for butter will increase by the end of the year. According to experts, whole-sale price of butter will be UAH 38-40 per kilogram at the end of the year. Retail price which is 30% higher will be from UAH 10-12 to 12-13 per 200 g (or 200 g package).
It should be mentioned; some years ago we could not even think of importing butter. On the contrary, about 50 tons of butter were exported a year.
9.09.2009
Co-operatives are likely to improve milk quality
From the point of view of a number of experts and analysts, the quality of milk will be better if individual milk producers create co-operatives. Together they will be able to buy milking equipment.
Maria Kolesnyk, a manager of the department of analytics at a consulting agency said: «If individual producers bring their cows together, unite in co-operatives societies and organize mechanical milking, the quality of the milk produced will be improved. Consequently, we will consume dairy products of better quality. Accordingly, this means better profits for the farmers. But first of all they have to make an agreement on how to use the profit, and of course they need a reliable person who can lead the co-operative. This is a very complicated issue, and it is mostly a question of trust between the farmers in their community. Local authorities of each region should help in solving the issues as they know better the situation in each village.»
10.08.2009
Timoshenko will bit up speculators with the help of Japanese elevators and milk tank trucks
Ukrainian Government has decided to establish investment projects with Japan. According to the correspondent of IA REGNUM News, this information was announced by Yulia Timoshenko on 6, August, in Kyiv.
The Head of the Government noted that such projects are concerned about the development of agrarian sector and especially about serving agricultural cooperatives. Timoshenko highlighted that within these investment projects Ukrainian agrarians will have an opportunity to get all the necessary machinery from Japanese companies: «By the end of the year, the agrarians will get the elevators and milk tank trucks, which will enable them to present their production at sales market on their own and not to depend on the pressure from speculators, that suppress milk and grain markets these days,«-said Prime Minister of Ukraine.
