In 2018, milk production in Ukraine is 10 million tons, that roughly corresponds to the last year’ level. But the dairy industry will get only about 4 million tons for processing. This is what Maxim Fasteyev, an analyst at the Infagro dairy market, shares in his Telegram channel.
That is, according to his calculations, official marketability in the industry is only 40%. But this is generally in Ukraine. In professional dairy farms, the marketability level reaches 94%.
The latter mainly provide raw materials to processors. “The remaining 6 million tonnes is the population’s own consumption, bazaars, feed and registry of district administrations,” the analyst explains.
According to his estimates, the demand of the Ukrainian market for high-quality dairy products in 2018 is 3 million tons (2.8 million tons from processed raw materials and another 0.2 million tons will be imported in dairy equivalent).
Exports of milk from Ukraine in 2018 will amount to 1.2 million tons in the equivalent of raw milk. Fasteyev emphasizes that this figure is almost identical for the last 10 years.
“Hence, a simple calculation: every 4th kg of milk received for processing is intended for export,” he notes.
It is estimated that 75% of this export is butter, skimmed milk powder, cheese, and cheese product.
By the way, in January-October 2018, the cash equivalent to these products accounted for about 67% of total supplies to foreign markets.