Ukraine increases export of dairy products by 12% due to transition to products with long shelf life in 2022 – expert

KYIV. Dec 29 (Interfax-Ukraine) – In 2022, in the context of the full-scale Russian invasion, Ukraine increased the total export of dairy products in terms of the equivalent amount of raw milk by 12% compared to 2021.

More than others, this indicator increased for hard and semi-hard cheeses – by 83%, skimmed milk powder – by 67%, acid casein and caseinates – by 45%, butter – by 29%, although a decrease in exports is recorded for some positions, Maksym Fasteyev, a dairy industry analyst, a project partner at Infagro, said.

"Due to the large-scale Russian military aggression, the milk balance of Ukraine in 2022 changed dramatically. Migration and the destruction of internal and external logistics routes led to an excess of raw materials, which began to transform into products with a long shelf life, primarily exchange-traded dairy products (milk powder, technical casein, etc.)," Fasteyev wrote in his Telegram channel.

According to him, such a strategy was fully justified, as it contributed to the continuous operation of the industry, since milk must be obtained and processed every day, despite holidays, wars or power outages.

In addition, the favorable global situation on the dairy market also contributed to the activation of trade in Ukrainian products.

"Already in March, it became clear that the stockpiling rate of exchange-traded dairy products was too high for the needs of the domestic market in the near future, so they must be exported unambiguously. The nuance was that the export routes were not functioning," the analyst explains the reason for the increase in production of products with a long shelf life.

Fasteyev also notes the success of the state program carried out in the first months of the war to buy dairy products from processors for humanitarian and military needs, which was able at a critical moment to unload processors’ warehouses and thereby maintain the stability of raw material production.

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