[ad_1]
Ukraine’s milk and dairy products sector is showing signs of recovery after a period of stagnation during which producers in this net exporting country struggled to provide high-quality raw materials. European Bank for Reconstruction and Development (EBRD) and the Ukrainian Dairy Industry Working Group (WG), the industry is now beginning to show signs of greater efficiency, productivity and inclusiveness.
The working group has played an important role in introducing legislative reforms to the Ukrainian government, including new quality and safety standards, and in developing the investment case for industrialization. Regular discussions between the government and the private sector on dairy news, key legislative initiatives, standards and market trends have become an important tool for promoting transparent policy development.
“Active dialogue between agribusiness and the Ukrainian government is a key factor in promoting the development of the sector. It creates a more transparent policy environment conducive to investment and helps diversify dairy export markets,” said Victoria Zinchuk, Head of Agribusiness Advisory, EBRD.
Knowledge Transfer
Keeping dairy producers and industry experts informed of the latest news and technical knowledge is crucial to the transformation of the dairy sector. With this in mind, in 2014, FAO and the EBRD organized a study tour for members of the Task Force to visit some of the key milk-producing regions in the United States.
During visits to farms, dairy cooperatives, dairy processing plants, and research and extension centers, the delegation gained valuable insights into new technologies and production methods, as well as modern dairy business practices.
“Wisconsin farms account for 14 percent of U.S. milk production, and we covered the entire dairy value chain in the state—from scientific research, applied research and extension services to commercial production, processing and cooperatives,” said Denys Serhiyenko, Director of Ponory Dairy Farms, LLC.
“I have been on many dairy trips in my life, but this one was the best. I learned a lot about calf rearing, animal breeding, alfalfa cultivation and feed production. The technological approach used by this American cheese factory made us rethink our cheese-making process, and we are now implementing this change in our factory,” added Anatoliy Volkov, director of the Plemzavod Stepnoy farm.
High-level events such as the 2016 Eastern European Dairy Congress in Kyiv, which attracted more than 2,000 dairy farmers and industry professionals from various countries, have facilitated the exchange of not only ideas but also technical and market knowledge.
This has brought many benefits, including helping farmers upgrade their facilities and improving the quality and quantity of milk.
Breaking new ground
China and the European Union have welcomed Ukraine’s efforts to expand trade and opened their markets to several Ukrainian dairy companies in 2015. China has also recently sent trade delegations to visit countries in the Middle East, sub-Saharan Africa and Asia, and is also helping Ukrainian dairy products find new market opportunities.
Among these products, cheese remains particularly important, but Ukraine has also increased exports of skimmed milk powder, butter, ultra-high temperature treated (UHT) milk, cream and fermented dairy products, creating new possibilities for dairy producers.
However, FAO economist Andrei Yarmark believes that while most farmers invest every year to expand production, they would benefit more if they invested in processing technology.
“The cost of producing a litre of milk is ten times higher than processing the same amount. Instead of having to invest in milk production, farmers can use the same funds to set up a processing plant and produce high-quality dairy products for domestic and export markets,” he said.
Yarmak demonstrated this with a real-life example of a Ukrainian dairy company that developed a product specifically for the Chinese market after deciding to invest in a whole new production line.
Strength in numbers
The Ukrainian Milk Producers Association, one of the most active members of the working group, recognises the advantages of strength in numbers and is currently developing cooperatives of milk producers to add value through processing.
Currently, about 20 larger dairy farmers are developing business plans, and five of them have joined together to sell milk collectively, increasing their income by about 10%.
“If you really have the strength to push it, you can achieve amazing results,” said Andrei Dikun, chairman of the Ukrainian Milk Producers Association.
It is this spirit of working together, and giving all players a say in important policy decisions, that underscores the progress the WG has made in transforming Ukraine’s dairy sector.
[ad_2]
Source link
