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Eng
22 August 2019

The concept of milk production will change in Ukraine

Since July 16, Ukraine has officially entered into force changes to the requirements for milk production. This will improve the quality and safety of milk and dairy products, as well as export products in accordance with European standards.

New production standards will oblige processors to monitor quality and safety indicators and introduce new approaches to sampling frequency. In fact, all responsibility for manufactured products now rests with the market participant. At the same time, the control inspections of the bodies of the State Food and Beverage Service will remain planned.

It is planned that the transition period for adaptation for domestic market operators is set until 2022. This will optimize production and purchase the necessary equipment. The requirements apply to all operators of the market for milk and dairy products, regardless of ownership and subordination, whose activities are associated with the production, processing and putting into circulation of these products. The rules do not apply to the primary production of milk and colostrum intended for own consumption.

According to the First Deputy Minister of Agrarian Policy Elena Kovaleva, over the past 5 years, the volume of milk received for the processing of the "extra" class has increased 2.6 times, reaching 600 thousand tons in 2018. “Trends in improving the quality of milk should become irreversible, because they are aimed at ensuring public health. The population should consume high-quality dairy products made from safe raw materials in compliance with hygiene requirements and without antibiotic residues, ”said Elena Kovaleva. She added that most of the state support programs are aimed specifically at stimulating the development of the dairy sector.

"Infagro" lead analyst Maxim Fasteev predicts that processing volumes will drop markedly due to reduced milk production by households. Because of this, for the first time in recent years, the export of raw milk will noticeably decrease. The share of receipts for milk processing from households will be reduced to 25%. “Intermediaries, unlike the population, approach their business as a business, and therefore do not want to work for a penny. Accordingly, all the price risks of the chain fall on the conditional “grandmother”. After all, those households that still want to earn money have already abandoned such a sales model and work through other channels - they sell their raw materials in markets / bazaars on their own, organize family farms, and open craft processing, ”notes Fasteyev.

The expert believes that the new standards will affect the improvement of the quality of processed raw materials and, accordingly, the quality of dairy products on the shelf, a decrease in production volatility, and a potential increase in the purchase price of milk.