Ukraine is going through a bed stretch. Political and economical volatile has also affected dairy sector. What immediate steps Ministry of Agrarian Policy and Food takes to solve problems and what goal sets in present difficult conditions — this is the topic of the conversation with Deputy Minister Andrii Dykun.

— How do you appraise the situation in Ukraine and in dairy sector in particular?

— Ukrainian economy is experiencing severe crisis. The same is in the dairy sector as an integral part of the economy. The situation is quite paradoxical: on the one hand, there is a shortage of milk, and on the other — the circumstances are formed so that today even produced milk has become useless.

According to various estimations, sales of dairy products in the domestic market fell by 15-20%. Although wages of the Ukrainians remained unchanged, but due to the devaluation of the hryvnia consumers can buy less than six months ago.

The other important factor is the loss of the Russian market. Russia virtually closed its borders to Ukrainian dairy products. A portion of our exports to this country is quite significant: about 20% of what we process. It’s nearly 1 million tonnes of milk. The main export goods, cheese are not sold. Dairy operations are trying to switch production to milk powder, which is traded in on the world market. But it’s not an affair of one day only. In addition, we must remember that we wll sell this product at the world’s prices and not more expensive than that.

We also lost the market of the Crimea, which provided 2 million consumers. As it happens, Crimea’s dairy farms delivered raw milk to the mainland while dairy products were brought to the peninsula.

That’s the situation we are having today. Of course, it is unpleasant, but not hopeless. At times of the things, which take place in the country, dairy industry is not at worst.

As for me, today we must put emotions aside and understand that the territorial integrity of the state and the lives of its citizens is a priority, and we all need to work.

— What may the future hold in store for milk producers under such conditions?

— What has been already done for the dairy sector?

— Where could Ukraine export domestic dairy products?

— Are all dairy processing plants ready to collaborate?

— Are they planning to work with a retail network?

— What can milk producers expect from the government?

Read the answers on these and other que

Read the answers at these and other questions in the magazine «Milk and Farm» № 2 (21), April, 2014