Expert Opinion
Volodymyr Andriets
analyst Association of Milk Producers
Association of Milk Producers

The World Milk Crisis 2020 - what are the scenarios for future events?

The World Milk Crisis 2020 - what are the scenarios for future events? Volodymyr Andriets analyst Association of Milk Producers During the global quarantine analytical…

The crisis as a driver of positive change - in Ukraine there is an increase in extra milk

The growth of the share of quality milk is one of the indicators that has been maintaining stability for ten years. Despite the reduction in production, from year to year the processing enterprises receive more and more raw milk of the "extra" grade - both in relative and actual values. According to the results of the first quarter 2020, the share of extra grade is the largest in the structure of milk delivered for processing, for the first time in the history of independent Ukraine.

The crisis as a driver of positive change - in Ukraine there is an increase in extra milk

The growth of the share of quality milk is one of the indicators that has been maintaining stability for ten years. Despite the reduction in production, from year to year the processing enterprises receive more and more raw milk of the "extra" grade - both in relative and actual values. According to the results of the first quarter 2020, the share of extra grade is the largest in the structure of milk delivered for processing, for the first time in the history of independent Ukraine.

Of the total volume of milk (644.7 thousand tons), received for processing from dairy farms during the first quarter of 2020, 35.9% (which is 231.3 thousand tons) is of extra grade. The dynamics are encouraging, as the share of "extra" shows rapid quarterly growth. Thus, in the first quarter of this year it was delivered by 38.5% more than in the same period last year (+64.3 thousand tons).

The increase the volume and the share of “extra” grade was due to the reduction in the share of other, lower grades, mainly higher one. Thus, volume of higher grade amounted to 215.9 thousand tons, which is 13.4% less than last year.

Also, the volume of the first grade decreased, however insignificantly: 190.3 thousand tons (-2.6%).

The share of the second grade decreased the most: by 76%, to 5.2 thousand tons. This decline was due to the active reduction of livestock last year, since first of all low-efficiency farms contracted their cows herds.

The results of the first quarter prove that quarantine and warnings of producers about the risk of the crisis burning out in the dairy industry may have positive sides. Thus, farms are stepping up measures aimed at improving the quality and safety of raw milk. Consequently, for the first time in history, in the structure of "industrial" milk delivered for processing, the extra grade is in the lead.

The structure of quality milk received for processing from dairy farms in the first quarter, 2020.