Why do Ukrainians refuse to give milk for processing?

A dairy market analyst Maxim Fasteev predicts that milk processing will decrease in Ukraine. For the first time in recent years, farms reduced exports of raw milk, writes “Agro-Center”.

According to the expert, the share of milk for processing will be reduced to 25%. And just ten years ago it was 50/50.

“The main reason is the decrease in the demand (in general about the category, and about export prices), which gave rise to a low purchase price directly from the producer,”

said the expert.

Fasteev says that milk processors refused or refuse to work with the population because of the low quality of the product and a desire of a manufacturer to work with high-quality milk only. Mediators, unlike the population, approach their business as a business, so they do not want to work for nothing.

“All the price risks of the chain fall onto the shoulders of a so-called “grandmother” because those households that want to make money have already abandoned such a model of implementation and work through other channels – sell raw materials at the markets independently, organize family farms, open the craft processing and so on,”

said Maxim Fasteev.

The expert also told about the advantages and disadvantages of the modern dairy industry.

The disadvantages include a decline in the supply of raw materials for industrial processing, reduced exports, reduced financial support from the rural population, the risks of the sectoral balance (increasing deficit in winter), growing prices for dairy products.

The advantages include an improvement of the quality of processed raw materials and, accordingly, the quality of dairy products; a reduction of volatility in production; possible increase in the purchasing value of milk producers, that is, for investments in large-scale production (with the growth of consumer demand for dairy products within the country); the gradual transition to European requirements for the quality of raw materials.