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…

More than a third of industrial milk received for processing is extra grade

According to the results of 2020, milk processing enterprises received 3 million 511.8 thousand tons of milk, which is 7.6% less than in the same period last year. At the same time, the distribution of raw milk materials into grades in the total milk supply showed an increase in the share of "extra" and "migration" of the second grade to the first.

This was reported by the analytical department of the Association of Milk Producers.

Thus, the share of raw materials in the total weight of revenues for processing increased from 20.5 to 26.9%, or 885.1 thousand tons in physical terms.The percentage of higher grade decreased from 27.1% to 26.6% (875.9 thousand tons).  And the first, on the contrary, increased from 27.3% to 41.4% (1 million 361.9 thousand tons). The share of the second grade decreased sharply from 23.3 to 4.6% (150.5 thousand tons). Hence, the logical answer is why the share of the first grade has grown so much.


At the same time, the structure of milk supply to factories from industrial farms was as follows: 34.6% (against 27.2% in 2019) extra, 34.2% (35.9%) higher, 30.4%  (32.3%) of the first and 0.6% (3.7%) of the second grade.


There was a sham leap in quality in households. The share of the second grade decreased from 83.2% to 18.4%, while the share of the first grade, on the contrary, increased from 12 to 79.9%.  Thus, factories are trying to adapt to the requirements of the new legislation on milk quality and safety in conditions when they can not give up peasant milk.

The quality structure of milk delivered for processing by industrial farms,%