On November 4, an extended meeting of the Board of Directors of the Union of Dairy Enterprises of Ukraine (UDEU) was held, with the participation of the leaders of 30 dairy-processing companies and the Association of Milk Producers of Ukraine (AMP).
Before discussing current issues, participants were briefed on the situation in the country’s dairy sector, its development model, and the available instruments for compensating capital investments through taxes.
In addition to current issues, the meeting addressed the situation on the global dairy market and its negative impact on Ukrainian milk producers and processors. Participants agreed that the situation poses a threat to the sector and reviewed possible solutions to present challenges, including seeking government support.
For the first time, joint consultations between UDEU and AMP took place regarding coordinated actions by milk producers and processors to prevent disruptions in the industry. It was noted that recent misunderstandings had arisen concerning milk production indicators, particularly marginality. Arsen Didur, Executive Director of UDEU, proposed creating a joint analytical group with AMP to provide assessments to members of both UDEUand AMP.
It was decided that by November 15, UDEU will prepare its calculations and proposals for discussion with AMP regarding the current procurement price of milk and will also consider other options for overcoming the crisis facing the domestic dairy sector — caused both by internal factors and by unfavorable conditions in the global dairy market.
Participants emphasized the importance of launching constructive consultations between representatives of milk producers and processors and expressed hope that this practice will continue.
