Ukrainian Milk Production Grows Slowly29 October 2013
UKRAINE - The livestock population in the country stabilized in 2012 after decades of decline, with moderate growth outlook for 2013/14.
Total milk production is growing slowly driven by increased productivity and high prices. Insignificant contraction of dairy cows number will be offset by increased productivity. Production of all types of dairy products grew in 2012-13 reflecting growing disposable incomes.
Exports to foreign markets remain limited for all dairy products but cheese. Ukraine will remain the largest supplier to world’s largest cheese market - Russia. Multiple trade conflicts that Ukrainian exporters faced had only limited negative impact. The trade in cheese is expected to remain close to 2012 numbers in both 2013 and 2014. Exports of Nonfat Dried Milk (NFDM) would also contract due to problems on the major export markets.
Import of dairy products will continue to grow. Many Ukrainian consumers with higher incomes prefer higher quality imported cheese, butter and whole milk products. Although insignificant in 2012-13, Ukraine’s imports may create a rather big import niche market in the future. Most of the imports arrive from EU countries.
If Ukraine signs the Association Agreement which will empower the Free Trade Agreement with the EU in the end of November of 2013, it could result in increased imports of processed dairy products from the EU in 2014 and beyond. At the same time it can cause problems with Ukraine’s exports to Russian Federation.
You can view the USDA GAIN: Ukraine Dairy and Products Annual 2013 report by clicking here.
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