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 dairy industry continues to run short of raw materials

During the first quarter of 2020, processing enterprises received 847.2 thousand tons of milk, which is 3.5% less (30.9 thousand tons) than in the corresponding period last year. The decline in revenues came from the domestic sector, while commercial dairy farms increased supplies.

 

The dairy industry continues to run short of raw materials

Agricultural enterprises provided deliveries of raw milk at the level of 644.7 thousand tons, which is 1.1% higher than last year. The growth of raw material supplies from dairy farms (DF) took place in at least nine regions, and among the leaders - milk processing facilities of Lviv region (+ 28.9%), Poltava region (+ 16%), Khmelnytsky region (+ 15%), Zaporizhia 15%) and Zhytomyr region (+ 9%). Meanwhile, processors of Mykolayiv and Kherson regions, on the contrary, short-received 18.6% and 10.8% of "industrial" raw milk, respectively.

From backyard farms, deliveries to processing facilities decreased the most in Chernivtsi (-66.7%), Ivano-Frankivsk (-57.2%), Dnipropetrovsk (-42.9%), Kherson (-28.1%) and Vinnytsia (-26.4%) regions.

Speaking in general about the deliveries of milk from both sectors, it should be noted that decline in receiving of raw milk was faced by processors of 16 regions, including enterprises of Ivano-Frankivsk region (-33.9%), Sumy region (-25.7%), Kherson region (-17.6%) ), Kharkiv region (-15.8%) and Mykolayiv region (-12.9%).

Processors in Lviv and Poltava regions can feel most confident, because here the supply of raw milk grows both from agricultural enterprises and from households.

Thus, the trend of reducing both production and receipt of milk for processing continues, and it is supported by households. This trend, unfortunately, will stay. The only hope for processors here is industrial dairy farms, which, after a significant reduction in livestock last year, are showing serious work in the new year to increase productivity and overall efficiency of their management, even in times of crisis. One more reserve is the transition of the homestead sector into family and small farming enterprises.

Source: AMP Analytical Department according to the State Statistics Service of Ukraine