Ukraine's dairy sector wants urgent state help

Ukrainian dairy processors are asking for urgent state support as raw material shortages and increased imports hamper operations. Ukraine's parliament has scheduled a hearing for February 8 to discuss the current situation in the dairy sector. A complaint from milk processors about a sharp shortage of raw milk is the main topic on the agenda, according to Arsen Didur, executive director of the Ukrainian Union of Dairy Companies. In 2023, the cow population in Ukraine fell by 4% to 1.29 million head, according to preliminary calculation by the Ministry of Agriculture and Food of Ukraine. Scarcity increases pressure along the entire value chain, driving up prices. For example, the average price of butter on the Ukrainian market last year increased by 40%. "The average capacity utilization rate [of Ukrainian dairy processors] is 50% to 60%. This affects production costs and competitiveness," Didur told local newspaper The Telegraph. Food security at stake Without state aid, dairy ...