Ukraine Urges Investment in High-Value Dairy Processing Amid Economic Challenges
Source: DairyNews.today
Ukraine’s Agriculture Minister, Vitaly Koval, is calling for investment in higher-value dairy processing to increase export potential, aligning with a broader government vision for the sector.
Koval, who assumed the ministerial role in September 2024, outlined this strategic direction in a recent virtual meeting with dairy industry groups.
Koval emphasized the importance of integrating with European standards, noting that alignment with EU regulations would improve the quality and safety of Ukrainian dairy products, making them more competitive internationally. “Farmers should actively engage with European dairy norms,” Koval stated, according to a ministry release. Ukraine’s dairy export products currently average $309 per tonne, whereas European exporters like Poland, France, and Hungary see averages closer to $1,000 per tonne, underscoring the potential value in product enhancement.
Koval also advocated for global market expansion, pointing out that while Europe is the largest market for Ukrainian agricultural products, diversifying exports would help strengthen the industry’s resilience.
Navigating Wartime and Economic Challenges
The ongoing conflict in Ukraine has heavily impacted the dairy sector, with nearly 52% of production capacity lost, according to the Ukrainian Dairy Business Association. Additionally, dairy companies face a critical shortage of turnover capital, which has led to praise for government support initiatives offering soft loans with subsidized interest rates between 5% and 9%. Industry representatives at the meeting highlighted the importance of these programs to help sustain milk farms during the ongoing crisis.
Drought Adds Pressure on Production
Koval noted that drought conditions have severely affected pastures, compounding production challenges. The Ministry projects a potential 15% decline in crop yields this year, which could further strain feed supplies for the dairy sector.
With these initiatives, Koval aims to increase competitiveness in Ukraine’s dairy industry and boost its capacity to access and succeed in global markets.
Koval emphasized the importance of integrating with European standards, noting that alignment with EU regulations would improve the quality and safety of Ukrainian dairy products, making them more competitive internationally. “Farmers should actively engage with European dairy norms,” Koval stated, according to a ministry release. Ukraine’s dairy export products currently average $309 per tonne, whereas European exporters like Poland, France, and Hungary see averages closer to $1,000 per tonne, underscoring the potential value in product enhancement.
Koval also advocated for global market expansion, pointing out that while Europe is the largest market for Ukrainian agricultural products, diversifying exports would help strengthen the industry’s resilience.
Navigating Wartime and Economic Challenges
The ongoing conflict in Ukraine has heavily impacted the dairy sector, with nearly 52% of production capacity lost, according to the Ukrainian Dairy Business Association. Additionally, dairy companies face a critical shortage of turnover capital, which has led to praise for government support initiatives offering soft loans with subsidized interest rates between 5% and 9%. Industry representatives at the meeting highlighted the importance of these programs to help sustain milk farms during the ongoing crisis.
Drought Adds Pressure on Production
Koval noted that drought conditions have severely affected pastures, compounding production challenges. The Ministry projects a potential 15% decline in crop yields this year, which could further strain feed supplies for the dairy sector.
With these initiatives, Koval aims to increase competitiveness in Ukraine’s dairy industry and boost its capacity to access and succeed in global markets.
