Ukrainian cheese makers are losing tens of mullions of dollars because of Russia

According to customs statistics, the export of cheese from Ukraine within five months of the current year constituted 13,6 thousand tons, while during the same period of the previous year its export constituted 23 thousand tons.

These numbers are a logical consequence of constant complaints on part of Russia about Ukrainian produce and the ban on cheese export for a number of Ukrainian dairies, says the association “Ukrainian Agricultural Business Club.” 

According to the press service of the association, the revenue from the export of Ukrainian cheese of all types between January and May of 2014 constituted $90 million, and this is $42 million less that the accordion revenue for five months of the previous year.

“Cheese used to be the most important and valuable export-oriented dairy product for Ukraine, but 84% of its sales went to the Russian market. The losses from the decrease of cheese sales were somewhat compensated by some turnaround of production and the growth of export of other dairy products, such as butter and condensed milk and regular milk. However the overall revenue from export of dairy product during the current year has already fallen 6% and according to the results of the five months of 2014 constituted $157 million,” says the message.

The volume of import of dairy produce decreased as a result of the devaluation of the hryvnia, however the value of import grew 20% and constituted almost $100 million.

“These factors had a negative influence on the export balance of dairy products in Ukraine. As a result, the positive trade saldo fell 31% and constituted $57,3 million,” added the association.

“Thus, we are seeing a real threat to the Ukrainian dairy industry. The seasonal production growth of milk is clashing with the decrease in demand on raw milk because of trading problems with Russia. In order not to lose the position of the net export of dairy produce, Ukraine has to diversify the export markets as quickly as possible. In order to have the opportunity to sell our dairy products to the European Union and conquer new perspective markets, it is necessary to pass a package of bills as soon as possible, in particular “Regarding amendments to some legislative acts of Ukraine regarding food produce safety,” “Regarding amendments to some legislative acts of Ukraine regarding identification and registration of animals,” “Regarding the animal byproducts not intended for human consumption,” “Regarding state control in the sphere of security and quality of food produce, feed, animal welfare.” The sooner these bills are passed, the more chances we have to access the European market,” emphasised the expert in agricultural markets of the UABC Alina Zharko.

Source: Zaxid

Translated by Mariya Shcherbinina

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