Головна Animal husbandry Dairy farming Most milk processing plants are operating at a loss

Most milk processing plants are operating at a loss

Milk producers and processors should jointly decide on pricing of raw milk. After all, domestic products are more expensive in the domestic market than imported ones.

This was stated by Chairman of the Board of Directors of the Union of Dairy Enterprises Vadim Chagarovsky, reports ProAgro Group referring to AgroTimes.

“Milk producers and processors should sit down at the negotiating table, analyze the marketing chain, because added value is created by processing and make decisions on pricing,” he said.

The situation is critical, because most dairy companies are now working with losses, said Vadim Chagarovsky.

“Some companies have already stopped: in Chernigov, in “Milkiland” a few plants, he said. – So, if someone has euphoria of rising prices for milk in the future, it will ruin the dairy industry. There will be no one to buy the 2.7 million tons of milk that industrial farms produce today.”

As reported, now in Ukraine there are real risks of displacement of domestic products by imported ones, which will trigger a chain of negative economic events in the form of closures of dairy companies.

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