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Milk production: the tension is growing (edited and updated 22.06)

The production of all types of milk for the first five months of 2021 decreased by 5.3% - to 3 million 433.3 thousand tons - according to the analyst of the Association of Milk Producers Yana Linetska.

Among farms of all categories, only two oblasts increased production: Ternopil (164.1 thousand tons; + 5.3%) and Khmelnytsky (254.8 thousand tons; + 1.2%). In other areas, milk production has been on a downward trend.

The expert notes that the market situation is quite tense. Milk prices have remained stable for six months. On the one hand, the seasonal decline in prices is over. But on the other hand, what to expect in the fall and what are the consequences for the dairy industry. Over time, the problem will only get worse. After all, there is a shortage of raw milk on the market and it is not easy to "disperse" its industrial volumes - it will take years.


"The situation is aggravated by the rapid approach of the land market. In less than half a month, the circulation of agricultural land in Ukraine will start working. It is not yet known how the market will operate in the new conditions. Everyone has taken a wait-and-see attitude."


Industrial sector:

As of June 1, 2021, industrial farms provided the production of 1 million 144.9 thousand milk, which is 33.3% of the total milk supply. Compared to the analyzed period of 2020, the market did not receive 7.1 thousand tons of milk.

It is worth paying tribute to those farms that continue to increase milk production and work on efficiency in such turbulent times. And such farms have recently increased. According to the State Statistics Service, the largest increase in milk production during the analyzed period:

  • Ternopil region (48 thousand tons; +13.2%), 
  • Khmelnytsky region (77.7 thousand tons; +5.9%), 
  • Vinnytsia region (93.0 thousand tons; + 5.8%).

Reduced production:

  • Chernivtsi (3.0 thousand tons; -33.3%), 
  • Rivne (17.5 thousand tons; -30.8%), 
  • Transcarpathian (0.3 thousand tons) -25.0%) and 13 more oblasts.

Households:

In the period January-May 2021, 2 million 288.4 thousand tons (-7.5%) were produced in households.

The only region that showed an increase in volumes was Ternopil (+ 2.4%; 116.1 thousand tons).

The rest reduced production. The largest decline was observed in Kharkiv (78.5 thousand tons; -17.4%), Chernihiv (76.9 thousand tons; -13.8%) and Vinnytsia (200.2 thousand tons; -13.1%) ) areas.

Press service of the Association of Milk Producers