1. DUTCH-UKRAINIAN
dairy sector project
“INFOMOLOKO”
Artem Milshyn,
23-04-2008
The Hague, The Netherlands

2. CONTENTS
 Project description
 Project activities
 Evaluated events
 Future events and activities
 Market survey “Milk sector of Ukraine”
 Weaknesses and possibilities of Ukrainian raw milk
branch
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3. Project description
 Dutch-Ukrainian dairy sector project “Infomoloko”
is created within frames of intergovernmental
cooperation between The Netherlands and
Ukraine “Development of dairy sector of Ukraine”
 It is a three-years project
 Project is financed by Dutch Ministry of economic
affairs
 Dutch agriconsunting company The Friesian is
implementing the project
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4. Aim of the project
To increase culture of milk production on all
stages “from field to consumer” by involving
professional Dutch companies for
qualitative cooperation and transfer of
leading experience and modern
technologies to Ukrainian colleagues
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5. Project activities
 marketing surveys of current situation of raw milk production and
processing in Ukraine
 expertise analysis of demands and problems of the sector for further
development of strategy on the level of companies and step-by-step
plan for improvement of culture of dairy products production
 development of projects, feasibility studies, business-plans, SWOT-
analysis of dairy farms and milk processing plants
 two dairy tours to The Netherlands for directors of Ukrainian milk
processing plants and dairy farms with aim of acquaintance with
leading technologies, examples of modern solutions in dairy
production chain, individual matchmaking with Dutch companies
 organization of specialized probation for specialists of Ukrainian milk
processing plants and dairy farms on leading Dutch plants and farms
 implementation of two pilot projects: on milk processing plant –
modern line for cheese production “Cheese machine”; on dairy farm –
innovative solution of manure storage and handling
 intergovernmental cooperation
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6. Evaluated events
 Official opening. Seminar. Dutch dairy mission to
Ukraine
 Location: Kiev, Ukraine
 Date: 07 July 2008
 Dutch participants:
 CRV
 Bles Dairies Livestock BV
 Delta Instruments BV
 Imtech Projects Noord-Oost BV
 Royal de Boer Stalinrichtingen BV
 Steenbergen International BV
 Van den Heuvel Dairy and Food Equipment BV
 Number of Ukrainian participants ~ 50 people
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7. Evaluated events
Ukrainian dairy processing mission to
The Netherlands
 Location: The Netherlands
 Date: 16-20 November 2008
 Ukrainian participants :
 Chaplynskiy Butter Plant
 Ivanovsky Butter Plant
 Molis
 Kupyansky
 Terra-Food
 Tesmo-m
 Khmelnitska MasloSyrbaza
 Koropsky Syrzavod
 Molochna Krayina
 Ukrainian Union of Dairy Enterprises
 Radomilk
 Kharkivskiy Molokozavod
 Number of Dutch participants ~20 companies7

8. Participation in other events
 IFC Workshop “Dairy Enterprise Supply Chain
Development”
 Location: Kiev, Ukraine
 Date: September 2008
 Participants: 10 Ukrainian companies
 Exhibition “InterAgro-2009”
 Location: Kiev, Ukraine
 Date: February 2009
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9. Participation in other events
Second Dairy congress
 Location: Kiev, Ukraine
 Date: February 2009
 Participants: 140 Ukrainian dairy farmers
 Dutch economic mission to Odessa
 Location: Odessa, Ukraine
 Date: September 2008
 Participants: 17 Dutch companies, active in Ukraine
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10. Future events and activities
 PESP-SWOT
 Location: Ukraine
 Date: Summer-Autumn 2009
 Participants: 10 Ukrainian dairy farms and processing
farms
 Dutch economic mission to Ukraine
 Location: Ukraine
 Date: October 2009
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11. Market survey “Milk sector of Ukraine”
 Prepared by
 ASSOCIATION “UKRAINIAN AGRIBUSINESS CLUB”
 Contents
 Dairy Production Sector
 Common Supply Chain Characteristic
 Investment in milk production
 Vertical integration in the dairy sector of Ukraine
 Agricultural policies on milk production and processing
 Foreign trade
 Consumption of milk products
 10 processing and 12 farms PESP basis
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12. Market survey “Milk sector of Ukraine”
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 Cow population in Ukraine

13. Market survey “Milk sector of Ukraine”
 Structure of the cow population across various farms
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2006 2007 2008 2006 2007 2008
up to 10 1380 1295 1138 6,3 5,7 5,0 79%
10-49 1668 1383 1013 45,2 36,8 26,8 59%
50-99 1174 969 742 82,7 68,7 51,9 63%
100-199 1291 1118 948 180,0 155,6 131,0 73%
200-499 1202 1017 900 355,4 305,4 274,3 77%
500-999 247 230 215 155,5 148,1 139,3 90%
Over 1,000 32 31 36 41,1 43,7 50,2 122%
Total 6994 6043 4992 866,2 764 678,603 -
Number of
cows
Number of agro-enterprises in the category
Total number of cows by category, (1,000
heads) Change ’08 to
’06

14. Market survey “Milk sector of Ukraine”
 Productivity of dairy livestock by various farms
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Number
Share in the
total, % 1,000. tones
Share in the
total, % Number
Share in the
total, % 1,000. tones
Share in the
total, %
under 1000 1019 16,2 35,1 1,5 1008 18,7 34,9 1,7
1001– 2000 1820 28,9 251,9 10,8 1470 27,3 218,8 10,5
2001– 3000 1632 26,0 473,7 20,4 1323 24,6 388,3 18,7
3001– 4000 934 14,8 546,9 23,5 759 14,1 430,0 20,7
4001– 5000 480 7,6 459,7 19,8 428 8,0 438,7 21,2
5001– 6000 229 3,6 298,1 12,8 200 3,7 292,2 14,1
more than 6000 181 2,9 257,9 11,2 195 3,6 271,2 13,1
Enterprises – total 6295 100,0 2323,3 100,0 5383 100,0 2074,1 100,0
Productivity,
kg /cow
2006 2007
Number of agro-enterprises in
the category Total milk yield
Number of agro-enterprises in
the category Total milk yield

15. Market survey “Milk sector of Ukraine”
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 Raw milk production in Ukraine (1990-2007)
1990 1995 2001 2002 2003 2004 2005 2006 2007
Dairy farms 6.2 4.6 1.7 1.4 1.1 0.9 0.9 0.8 0.7
Households 2.2 2.9 3.2 3.3 3.2 3 2.8 2.7 2.5
Total 8.4 7.5 4.9 4.7 4.3 3.9 3.6 3.4 3.1
Dairy farms 3 1.9 2.1 2.2 2.1 2.5 2.9 3.2 3.1
Households 2.7 2.7 3.1 3.2 3.2 3.4 3.6 3.9 3.8
Total 2.9 2.2 2.7 2.9 2.9 3.2 3.5 3.6 3.6
Yield, t/cow:
Cows in milk, miln. heads:

16. Weaknesses and possibilities
 The prevalence of households in the total raw milk supply
 Seasonal difference of raw milk production by households and
dairy farms
 Low quality of raw milk
 Feed production is not efficient (poor quality, no cost efficiency)
 Lack of investments in dairy farming, high bank interest rates
 Logistics and infrastructure (milk collection, storing and
distribution) is underdeveloped and rather expensive
 The absence of manure processing systems at the majority of
enterprises, and first of all, at smaller ones…………
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17. Possibilities
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 Start up and move!
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18. 18
Thank You
e-mail: info@infomoloko.com.ua
www.infomoloko.com.ua
attention is appreciated
questions are welcomeYOUR !