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Abolition of Milk Quotas in the EU: the Impact on Ukrainian Dairy Industry

Tetiana Antonenko, International Dairy Magazine

It’s not the first year when international dairy community, especially European, discusses possible impact on dairy production after abolition of milk quotas in EU. Such a term as ‘postquotas period’ has appeared in analytical reports. European Parliament also works on scenarios of dairy industry development after 2015. Experts criticize some of its work. Business doesn’t ‘stand still’ as well: huge investments in equipment for milk-powder production affirms that processing is preparing for ‘milk tsunami’. There is a point that milk producers won’t be able to raise production essentially.

Last year Ukraine produced 11,4 million tons of milk. 4,7 million tones was processed. Production forecast is promising — production of domestic milk is supposed to increase, though without a striking jump.

How international market changes, caused by the abolition of milk quotas in Europe, may influence the development of the Ukrainian dairy business.

Forecasts of FAO (Food and Agriculture Organization) and some other analytical organizations affirms that in 2015-2020world milk production will raise to 65 million tones. India will provide half of this growth, China — about 20%, milk production will raise up to 8 million tones in the USA and to 7 million tones in EU. Even such ‘low’ growth troubles producers and processors in Europe, while debates over coming changes on dairy market continue.

More information read in the magazine ‘Milk and Farm’, № 4 (17), August, 2013

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