Ukranian milk producers hit by Russian ban

By on June 2, 2014
Dairy cow milking Agriland

Ukranian milk producers have lost €9 million a month since after Russia banned dairy imports from a number of suppliers.

According to the Ukrainian Agribusiness Club (UCAB), after the introduction of restrictions for dairy products export to the Russian Federation, milk purchasing prices have fallen since the mid-April by 15-20% in the Ukraine.

As a result of worsening of trade relations with Russia, the ban comes after the Ukraine banned a number of Russian food companies selling in the Ukraine. Seasonal growth in milk production also had an impact on decreasing of purchasing prices, it says, but this factor has reduced the price no more than by 4-5%.

A big problem for milk producers is the rapid growth of milk costs as a result of higher prices for feed, it goes on to say, with the price of soy meal from the beginning of the year has increased by 40%. The price for corn increased by almost 30% for the last two months, it also says. 

“We should understand that such discbalance is threatening to the industry and makes it unprofitable. If the situation does not change, then about 100 ths heads of cattle can be slaughtered soon. The most dangerous is cutting heifers, which significantly reduces the number of replacement and threatens the decline of dairy industry the next three years”, – said Alina Zharko, an expert on agrarian markets of UCAB.

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