Ukrainian gov’t calls for investments in advanced processing in dairy
Ukraine needs to emphasise manufacturing dairy products with higher added value and boost export sales, as Vitaly Koval, Ukrainian agricultural minister, outlined during an online meeting with a group of dairy business organisations.
Koval, who was appointed into this role as minister in September 2024, has rolled out a new vision for the Ukrainian dairy industry’s development in the coming years.
In particular, he called manufacturers to seek deeper integration with Europe. “Adaptation to EU requirements will improve the quality and safety of [Ukrainian] milk and dairy products and make them more competitive. Farmers need to actively engage in studying European norms and standards in the dairy industry,” the ministry’s press office quoted Koval as saying.
The Ukrainian dairy industry also needs to focus on investing in advanced processing to get products with higher added value.
In 2023, Koval estimated that the average value of Ukrainian dairy exports was close to US$309 per tonne. In comparison, prominent European dairy exporters Poland, France and Hungary have this figure close to US$1,000 per tonne.
Moreover, Koval called on the Ukrainian dairy business to expand its operations globally, reaching out to new markets. He stressed the importance of Europe as the largest sales market for Ukrainian agricultural products but added that diversifying exports was necessary.
Wartime challenges
Koval also said that the ministry prioritises supporting dairy farmers on the frontline areas, though he has not revealed what forms this support may take. The Ukrainian dairy business association said that the industry lost nearly 52% of its capacity as a result of the ongoing hostilities, the ministry said.
One of the key challenges dairy companies now face is a lack of turnover funds. The companies praised the government programmes of providing soft loans with subsidised interest rates ranging between 5% and 9%. The ministry said, quoting meeting participants, that this support plays an important role in keeping milk farms afloat.
Drought takes a toll
Separately, Koval also highlighted the urgent need for support in the dairy industry this year given that the drought has severely affected pastures in several parts of the country. The production of some crops is also expected to be nearly 15% lower than in the previous year.
