Molochny Aliance sees no real alternative to the European market for exporting its products. This was stated by the chairman of the company’s supervisory board, Sergey Vovchenko, commenting on expectations regarding changes in the trade regime with the EU, according to Latifundist.com.
“We sold cheese to Europe, oddly enough, at zero profit, but we sold it in order to exist,” he said on the sidelines of the conference “Dairy Industry: Ukraine-EU,” specifying that he was referring mainly to the Baltic countries.
At the same time, the company did not export butter due to its shortage on the domestic market.
Vovchenko said that dry dairy products remain an important export direction for the Dairy Alliance.
“It is important for us to sell skimmed milk powder, whole milk powder and whey powder. Now this will affect us (the abolition of the ATZ — ed.),” he said.
He also rejected the possibility of reorienting to other markets.
“There are no alternatives,” he said.
According to Vovchenko, Europe is truly a premium market, because “if you are in Europe, you will be known everywhere.”
Vovchenko emphasised that the company’s presence in Europe is not only about sales but also about reputation.
“We fought hard to get European commissioners to come to our factories in person, rather than remotely, to inspect them and give us Euro numbers. Because it’s a brand,” he said.
Although the company is also present in North African markets, these areas do not compensate for potential losses in the EU, as Polish products are much cheaper.
Among the niche products that Ukrainian dairy producers can promote in foreign markets, he mentioned cheddar cheeses, which can withstand deep freezing without losing quality.
“We have learned how to make them. But this is not such a large market,” Vovchenko added.
