An initiative of milk processors to reduce the purchase price of raw milk is unacceptable, says MP Dmytro Solomchuk, a member of the VRU Committee on Agrarian and Land Policy.
He stated this during the online meeting of milk producers and processors, initiated by the Ministry of Agrarian Policy, reports ProAgro Group with reference to the information of the Ukrainian Agricultural Council.
“Today the agricultural producers, who invest in cattle-breeding complexes, with a sharp decline in the purchasing prices of milk and raw milk by 10%, it is easier to switch to crop production, where the profitability and return on investment is much higher. In such a case there will be nothing left of cattle breeding. This step will save neither processors nor producers,” he stressed.
According to him, the first thing for processors and milk producers is to reconsider the terms of cooperation with retail, where the markup on products reaches 40%.
In addition, according to Dmytro Solomchuk, the question remains why the memorandum for the establishment of fair trade practices in the producer-processor-network chain has not been signed by representatives of the processing industry, although all positions have been jointly agreed and the signing should have taken place in December.
