The Ukrainian dairy products are not expected in Europe — Chagarovsky

It is necessary to forget about Europe and focus on other markets. Such point of view was expressed by the Head of the Board of the Association of Dairy Producers of Ukraine Vadim Chagarovsky during the 4th Ukrainian conference with international participation Dairy Business 2016.

According to the speaker the association with the EU does not mean the opening of the market for Ukrainian dairy products.

"The existing quota for dairy products export is tiny even if our dairy products meet  the established requirements", said Vadim Chaharovskyy.

Besides the Milk Alliance is the only company among all dairy producers in Ukraine which is authorised to export its dairy products to Europe. The rest of the companies do not meet the requirements of the EU. According to the expert's estimation the actual raw milk production in Ukraine is about  7-8 million tons,  instead of unreal 11 million tons sometimes reported by the officials.

At the same time, the dairy producers can be profitable in the domestic market.  

Chagarovskyy reminded that raw milk prices have started growing rapidly, especially since September.

"The speed of such growth gives hope to the dairy producers to be profitable. But the dairy processing industry does not have such hope. Today the raw milk dairy processors are focused on the domestic market and purchasing power of the Ukrainian consumers. They cannot hope to be profitable. Thus the producers and processors should start the negotiation process", believes Vadim Chaharovskyy.

We would like to remind that the dairy products prices will be growing till the end of the year according to the Rabobank dairy market analyst Matthew Johnson.