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11.08.2016

The EU came up with a way to prohibit Ukrainian milk

The European Union is actually sentenced to slaughter another branch of the Ukrainian economy - milk. Suddenly it became clear that despite the political support and economic association, Ukrainian milk is forbidden for delivery to the EU market. And the reason for this seems to have indirectly become the Russian restrictions on farmers from Europe.

EU repealed purchase Ukrainian dairy products because of the high content of antibiotics, the general director of the Ukrainian association of suppliers of retail chains Alex Doroshenko.

According to him, the products are no Ukrainian producer does not meet European standards of quality, so it can not be sold on the European market. Even deliveries to Bulgaria in April this year were rejected by the importing country, reports TASS.

"Everyone knows that Ukraine is diluted with milk, but it's not the worst. It is much worse than what we are "stuffed" animals with antibiotics. And these antibiotics in milk ", - says Alexei Doroshenko.

At the same time, he notes that it is impossible to check all milk for quality characteristics. The fact is that there are few large dairy agro-enterprises in the country, and dairies buy mainly raw materials from small farmers and subsidiary farms. There are still "milk collectors" riding around the villages, who, for a penny, buy out cans with milk exhibited in the village courtyards. "Each bucket or a barrel of milk can not be checked, because of which even a small amount of low-quality milk can spoil a large batch," says Dmitry Lukashov from IFC Markets. However, the presence of difficulties is not a reason not to improve the system of inspections and quality standards. At the state level, there is almost no funding for testing dairy products, Lukashov notes.

Of course, it is not excluded that the European Union took the whole situation as an excuse to help its own producers of dairy products, which are on the verge of ruin. After the closure of the Russian market for European farmers fallen on hard times, and even on the world commodity market pushes the seasonal factor - prices are falling. For example, grain prices fell 5,6% for oilseeds - to 2,8%, milk - by 3,2%.

"The increase in supply and the decline in prices for products in the conditions of loss of the Russian market can lead to a crisis of overproduction in Europe and put local farmers on the verge of bankruptcy. At the same time, preferential terms for the export of Ukrainian goods, which are initially cheaper, can only aggravate the situation. Ukraine, which previously exported the lion's share of agricultural products to Russia, is now trying to transfer the surplus to Europe. However, it is unprofitable, first of all, for the European Union itself, "Dmitry Portnyagin, general director of the export company Transitplus International, tells the newspaper VIEW.

Exactly such a situation is observed in the milk market. Europe has long faced the problem of overproduction of milk, which led to a record drop in its value to 27 cents per kilogram of raw indicates Portnyagin. Ukrainian milk price only falls off even more in Europe.

"Despite the fact that the European countries honor WTO rules, protectionism in this case is appropriate. And the introduction of restrictions on the supply of Ukrainian milk in connection with the detection of a high content of hormones may be only a very convenient excuse "- does not preclude Dmitry Portnyagin.

In any case, in the fall of its exports, Ukraine should blame not only Brussels (for small quotas) and Moscow (for the break of the CIS free trade zone), but also itself. Of course, the EU was slightly cunning when it promised to open its market for Ukrainian goods. Quotas for duty-free supplies of Ukrainian products Brussels has allocated small, some of them were used already in the first two months of the year, others - by the middle of the year. But it's not just about quotas. Milk also has quotas, but it does not matter when no Ukrainian milkman has a license to export its products to the EU because of a lack of compliance with European standards.

Ukraine itself was just not ready for export to Europe. After Kiev was aware of the need to bring the goods into conformity with the European standards long before the creation of a free trade zone. Even in 2012-2013 years we calculated that it would take tens to hundreds of billions of hryvnia.

And the problem of low-quality milk in Ukraine - it is not the opening of 2016 years, knew about it all, and for a long time. Even in 2014, the Russian refused to Ukrainian molochki due to the presence in it of banned antibiotics - tetracyclines. "The question then was widely discussed in Ukraine at the highest level, but for some reason, no specific conclusions were made" - surprised Dmitry Lukashov of IFC Markets.

Everyone knows that there are high standards in the EU for imported goods - whether it's dairy products, meat, seafood, fish or grains. However, this does not interfere with either Russia or a host of other countries to supply their products to the EU. Russia, for example, is one of the largest suppliers of wheat, grain and oil pressing cultures in the Old World countries.

What prevented Ukrainian plants from preparing to enter the new market? "It remains only to guess, on the basis of what considerations, Ukrainian producers who are counting on increasing exports to the EU are not oriented in production to European quality standards. In fact, Ukraine remains one of the largest agro-industrial producers, and here there are not only farms, but also laboratories for testing the quality of products oriented to export. And the EU standards are not closed, and with them if you want it is possible to get acquainted ", - Dmitry Portnyagin is surprised.

"Probably, the Ukrainian producers had hoped" at random "or friendly position of the European Union and continued to feed the cows with antibiotics. As we are now seeing, not "a ride" - does not preclude Loukashov.

However, lack of investment also played a role. With the advent of post-Maidan power, the credit market in Ukraine collapsed, foreign investors lost track. Where do Ukrainian farmers or dairies find surplus funds, especially after they were deprived of a large market - Russian - even before the EU opened its doors? Brussels only since the beginning of this year has approved the supply of Ukrainian milk and only for 10 enterprises. Apparently, then European regulators did not find antibiotics in Ukrainian milk, but Ukrainian suppliers obviously could not keep quality standards.

Including why Ukraine is now trading under the free trade zone with the EU in a much smaller amounts than in the year 2013, to European integration and agreements.

At the same time in Ukraine, except the export of labor, was in fact an important export product - agricultural products. But only a third of Ukrainian agricultural exports account for a share of Europe, while Asian countries buy about 45% and even 15% - Africa, indicates Dmitry Lukashov. It turns out that Ukraine is not Russia traded on Europe, and in Asia and Africa. If not a third world country, the Ukrainian foreign trade would have collapsed completely.

According to the first half of the year 2016, Russia remains the main trading partner of Ukraine. Exports to the EU also fell more than 22% compared with the first half of the year 2013. Ukraine Agreement on association with the EU is nothing, in fact, has not given Ukrainian state.

A source: LOOK

Author: Olga Samofalova

Tags: Ukraine, Milk, Agriculture, Economy, EU Research