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Growing Sector Has to Face Marketing Challenges

23 April 2013

UKRAINE – More dairy cows are in production now than the year before and the emphasis of dairying on the economy means the supply chain has questions to answer.

This is according to the Ministry of Agriculture, who last week outlined marketing problems as the main area to improve profitability in Ukraine’s dairy sector.

Growing 4 per cent on 2012 headage, the country’s herd now totals almost 5 million milk cows. Developing the herd means farmers are competing in an increasingly competitive market place and administrative regulation is only capable of streamlining markets for short periods at a time, which it is doing through regulating farmgate milk prices.

"We understand that the administrative regulation is a temporary measure for a short time,” said Agriculutre Minister Mykola Prysiazhnyuk. “The main reason for unsatisfactory milk prices are unreasonable and uncontrolled processors.”

Farm losses are caused from ‘abuse’ from processors and the lack of good quality milk only adds to the problem, added Mr Prysiazhnyuk.

He also highlighted cost control of some producers and stated very clearly that, in order to achieve higher prices, farmers must work on the marketability of milk.

Part of the solution is to develop a model for agricultural cooperative associations. This, the government has said, will improve farmer income by minimising the effect of supply chain intermediaries and aiding marketing strategies.

To stimulate sector progress the government has established 19 Rural Development Centres in conjunction with the National Agriculture College. Seminars and workshops will also take place through 2013, aiming to reach 8,000 community leaders.

TheCattleSite News Desk

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