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Ukraine continues to struggle with dairy ban

02 November 2006

UKRAINE - Dairy production in the Ukraine will continue to suffer unless the industry is able to deal with a shortfall in demand for their produce created by a ban on their exports into Russia, says a new report by the USDA.

Russia banned Ukrainian dairy imports on 20 January this year, following complaints from its veterinarians that production facilities and farms were in breach of the Federation's food safety standards.

According to the organisations Foreign Agricultural Service (FAS), before a ban was put in place on their dairy exports entering Russia, Ukraine was one of the largest suppliers of cheese, milk, and butter to the country.

The Russian market offered a major source of income with €325m worth of produce being bought into the country last year alone. During the same period, figures also indicated that 50 per cent of all cheese imported to Russia had come from Ukraine.

While domestic demand may have risen for the produce, the report adds that the future success of the industry in the country is at a watershed, dependent on whether it can re-establish trade with the federation or successfully open up new markets with other partners.

While it has experienced some success in pushing dry milk into North African and fellow former Soviet union country's, valuable markets such as cheese and butter production have not been able to readjust so easily.

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Source: cee-foodindustry.com


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