Expert Opinion
Oleksandr Nazarko
CEO
Global Agro Finance

Summer camps for keeping cows in winter - advantages and disadvantages

Many farmers keep animals in summer camps, and many do so in winter. Exercise for cows. Fresh air. Reduced care costs? Is it really that…

Gеorgiі Kukhaіleshvili
analyst
Association of Milk Producers

Between proficit and deficit: an overview of the global dairy market

Despite the decrease in prices for milk raw materials in Europe, too much export supply for dairy products and weak demand on foreign markets, attractive…

Due to the heat, the cost will increase and livestock will continue to decline

As of August 1, there are 1,775.8 thousand cows in Ukraine, which is 6.3% less than on the same date last year. The number of cows decreased the most in Chernihiv (-14%; 87 thousand heads), Zaporizhia (-12.1%; 42.1 thousand heads) and Mykolayiv (-11.4%; 53.5 thousand heads) oblasts.

24% of the total livestock is kept in the industrial sector, the remaining 76% - in the population. Last year, this ratio was the same. As of August 1, there were 426.4 thousand heads in agricultural enterprises, which is 6% less than last year. Only the Ternopil region managed to increase the number -12.7 thousand heads (+ 2.4%). At the same time, the farms of Rivne region sold the most cows - up to 9.8 thousand heads (-19.7%).

The abnormal heat this summer has led to a mass burnout of corn crops.  As a result, many farmers are already selling fodder corn for silage.  At the same time, its prices are quite low - in the range of 200-250 UAH / t.  On the one hand, this is good, but on the other - it should be understood that this is not the high-quality silage that is needed.  In addition, farms in the southern regions could not grow even silage corn.  This situation with the feed base will have a response in the future - an increase in the cost of feed and milk, even the sale of livestock due to insufficient feed stocks.

The heat also affected milking. In January-July 2020, Ukraine produced 5 million 538.7 thousand tons of milk, which is 3.9% less than last year.  In particular, 951.1 thousand milk was milked in July, which is 5.1% less than last year (1002.7 thousand tons).

An increase in milk production of all types was observed in Ternopil region - 261.5 thousand tons (+ 2.9%) and Khmelnytsky (385.1 thousand; + 0.4%).

During the analyzed period, agricultural enterprises were milked 1,634.9 thousand tons of milk, which is 1.1% less than last year.  Ternopil region helped to restrain the rate of decline, where new production was launched.  Thus, statistics from this region show an increase in milk production by 16.2% - 60.2 thousand tons against 51.8 thousand tons last year.  Farms of Cherkasy region also showed a 5.5% increase - 179.8 thousand tons and Volyn - 57.8 thousand tons.

AMP Analytical Department