Dear ladies and gentlemen!
INFAGRO Ltd
offers to Your attention a new analytical report
UKRAINIAN DAIRY INDUSTRY
Despite significant decrease of production of milk, Ukraine still remains large producer and takes the tenth place in the world rating of the largest countries-producers of cow’s milk. According to results 2007, 12.2 million tons of milk was produced in the country. The dairy industry of Ukraine totals over 450 enterprises, but recently only about 250 dairy plants/enterprises really process large volumes of milk (over 6 million tons). The Ukrainian dairy industry remains very attractive to foreign investors. The branch totals the largest quantity of projects with foreign capital among all branches of the food industry. Despite the problems in the industry, Ukraine remains a major exporter of dairy products. The country is among leading world exporters of some dairy products. Our analytical report Ukrainian Dairy Industry will help you to understand the market and make correct decisions.
The main themes of the report: - Raw milk - General tendencies - Cheese market - Fresh milk products market - Milk powder market - Butter and spread market - Condensed milk market - Whey powder market - Casein market - Conclusions and recommendations Analytical report includes 103 figures (diagrams, graphs, charts), 9 tables with detailed analysis of information as well as forecasts on dairy market’s further development. Report volume - 114 pages. Report cost - US$ 2500 Regular subscribers to Dairy market bulletin are granted 10% discount. Contacts: Infagro Ltd Ludmila Kryvokhatko Analyst
Vasyl Vintoniak Director Tel/fax +38 044 258 25 02
MAIN IN BRIEF
The general tendencies •Ukraine remains large producer of milk despite the decrease of the production •Ukrainian dairy industry is still very attractive to foreign investors •Despite the problems in the branch, Ukraine remains a large exporter of dairy products •The geography of the export of dairy products from Ukraine extends every year
Raw milk •After several years of relative stabilisation, the next stage of significant decrease of milk production is observed in Ukraine •Decrease of the interest in dairy farming from the direction of households is important factor, influencing the process of reduction of cows number in the country •In the long term agricultural enterprises will increase milk production •In Ukraine the seasonality of milk production is most evident •The share of milk deliveries from agricultural enterprises is much lower, than from households •Poor quality of delivered for processing milk is the problem №1 of Ukrainian dairy industry • During last years the volume of milk deliveries for processing has grown significantly
Cheese •35 % of the total milk deliveries in the country is directed to cheese production •The manufacture of cheese is considered again one of the most profitable direction in the dairy industry of the country •In 2007 the manufacture of cheese has been again increased 15%, after crisis 2006 •In future the increase of cheese import will be observed as the consequence of the joining the WTO • In 2007 three Ukrainian exporters have exported 3/4 of the total cheese export
Fresh milk products •In Ukraine stable growth of processed milk output is observed •In the country over 200 plants produce fermented milk products, but 20 plants produce about 70 % of the total output of these goods in the country •Foreign suppliers are especially interested in sales of yoghurts and curd desserts to Ukraine •The decrease of the import duty to 10% will make it possible for the countries from the far abroad to enter the Ukrainian market of dairy products •The volumes of the export of fresh milk products are insignificant
Milk powder •Sharp reduction of milk production has not influenced yet significant decrease in the manufacture of milk powder, but in the long term the production will go down •Five leading companies produce about 40% of the total SMP output in the country, and more than 60% of the total WMP production in the country •In Ukraine the manufacture of skimmed milk powder much more exceeds manufacture of WMP •In 2008 dairy plants will lower the manufacture of skimmed milk powder about 15%, to the level of 73 thousand tons •For the last year 35 thousand tons of WMP was produced in the country; that repeats the record of 2005 •In the country 40-45 % of the total annual manufacture of milk powder is produced during May-July period •In 2007 SMP export has decreased to 58 thousand tons •Algeria is the basic commodity market for Ukrainian milk powder •In Ukraine the quantity of exporters of milk powder decreases every year, because of the integration of dairy business •In 2006-2007 WMP was exported to 35 countries of the world, but deliveries to Algeria remain the most considerable •In Ukraine there are four big exporters of WMP which completely control the market
Butter market •Last years the manufacture of butter has considerably decreased in the country •In 2007 ten the largest companies produced over 40% of the total butter output in the country •Since July, 15th 2006 Russia has completely banned butter purchases in Ukraine •Ukraine is not large exporter of butter any more •In the country the manufacture of butter is much lower, than spreads production •According to estimations of analysts, in 2008 it will be not exported more than 7 thousand tons of butter from Ukraine
Condensed milk market •In 2007 manufacturers of condensed milk reached a record high production indicator •The most of condensed milk is produced with plant fats/proteins use •In 2006 the export of condensed milk from Ukraine has decreased by 2 times, and in 2007 it has grown only 20 % •All export of condensed milk is fulfilled by four operators • The countries of Central Asia, Caucasus are the basic importers
Whey powder market •Only about 30 dairy plants produce whey powder in Ukraine •In 2007 five leading companies produced ¾ of the total manufacture of whey powder •Recently some Ukrainian manufacturers have started to produce demineralised whey and lactose • Japan and China are the basic importers of Ukrainian whey powder • Last year three companies fulfilled 70% of the total whey powder export volume
Casein market •Ukraine is one of the largest manufacturer of casein in the world, despite significant decrease of its production • There are about 60 manufacturers of casein in the country, only 15 of them output the volume from 200 to 550 tons a year • During many years Germany is the largest importer of Ukrainian casein • In 2007 more than half of the total export was fulfilled by two importers
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