Ukraine's Industrial Dairy Farms Set for 50% Production Increase by 2025
Source: The DairyNews
Ukraine's industrial dairy sector is poised for significant expansion, with anticipated output increases of 50% over the next two years, fueled by substantial investments, according to Vadim Chagarovsky, head of the Union of Dairy Enterprises of Ukraine. Speaking to Agroportal, Chagarovsky detailed the current composition and future prospects of the nation's dairy industry.
As of January 1, 2024, Ukraine's dairy herd included 1.35 million cows, with 390,000 in the industrial sector and 960,000 in the private sector, which consists of smaller, individual, and backyard farms. Despite their smaller number, industrial farms play a pivotal role in milk processing, contributing a substantial 94.5% of the milk processed in Ukraine. In contrast, individual farms process only 12% of their milk output.
In 2023, industrial farms processed nearly 2.7 million tonnes out of the total 3 million tonnes of milk processed in Ukraine, while independent farms contributed just 300,000 tonnes. Although individual farms currently dominate Ukraine's milk market, producing 4.54 million out of the total 7.34 million tonnes of milk, the balance is expected to shift towards the industrial segment.
Chagarovsky projects that by 2025, industrial farms will grow their herd to 441,000 cows, producing approximately 3.45 million tonnes of raw milk annually. In contrast, output from individual farms is expected to decrease due to natural factors and less favorable conditions.
To support this growth, the Ukrainian government is introducing new state aid schemes aimed at bolstering industrial dairy production. Taras Vysotsky, the first deputy minister of Agrarian Policy and Food, announced initiatives to level the playing field for Ukrainian dairies against European competitors. Key features of the support include soft loans with state-subsidized interest rates of 5% to 7%, with dairy farms able to obtain loans up to 150 million hryvnia (approximately US$3.7 million) since April 30.
This strategic focus on enhancing industrial dairy operations through government support is part of a broader effort to modernize Ukraine's agricultural sectors and align them more closely with European standards, ensuring sustainability and growth despite ongoing challenges.
In 2023, industrial farms processed nearly 2.7 million tonnes out of the total 3 million tonnes of milk processed in Ukraine, while independent farms contributed just 300,000 tonnes. Although individual farms currently dominate Ukraine's milk market, producing 4.54 million out of the total 7.34 million tonnes of milk, the balance is expected to shift towards the industrial segment.
Chagarovsky projects that by 2025, industrial farms will grow their herd to 441,000 cows, producing approximately 3.45 million tonnes of raw milk annually. In contrast, output from individual farms is expected to decrease due to natural factors and less favorable conditions.
To support this growth, the Ukrainian government is introducing new state aid schemes aimed at bolstering industrial dairy production. Taras Vysotsky, the first deputy minister of Agrarian Policy and Food, announced initiatives to level the playing field for Ukrainian dairies against European competitors. Key features of the support include soft loans with state-subsidized interest rates of 5% to 7%, with dairy farms able to obtain loans up to 150 million hryvnia (approximately US$3.7 million) since April 30.
This strategic focus on enhancing industrial dairy operations through government support is part of a broader effort to modernize Ukraine's agricultural sectors and align them more closely with European standards, ensuring sustainability and growth despite ongoing challenges.
23.09.2024
Carbon emissions in global milk production - the elephant in the room
I have been thinking to make this post yes/ no. I decided for yes and like to ask everyone to not "shoot the messenger". The chart shows an analysis of IFCN Dairy Research Network from the 2024 supporter conference in Poland.
