For the last five years there are two trends on the raw milk market of Ukraine: a precipitous drop in milk production on household farms and stagnation in the development of large-scale milk producers.
This is reported by the ProAgro Group with reference to Infagro.
The analysis of the situation shows that farms are improving the quality of milk sold, the fat and protein content, which can be seen in the dynamics of growth in the base 3.4/3.0. However, a noticeable increase in the volume of milk is not yet observed. The following reasons hinder this: the reliance on crop production, the lack of external investment, the factor of the land market and others.
“Given the volatility of the situation – the impact of global inflation, currency volatility and the like – the forecast for the industry next year is very cautious: milk receipts for processing is expected at 3.4 million tons (base 3.4/3.0), which is 1.5% below the result expected in 2021. Milk receipts from household farms will continue to decline, but the category of agricultural enterprises may increase, at least everything contributes to it,” says Maxim Fasteev, dairy market analyst.
According to the results of three quarters of this year, the State Statistics Service showed a decline in milk production in Ukraine by 6.1%. This dynamics will probably remain relevant and will affect the final indicator in 2021. The main reason for the overall decline is the reduction in milk production by household farms, and this trend will continue in 2022.
