Dairy Farming 

Within the last five years milk production tends to stabilize at the level of 9.0-9.8 million tons and is directed towards the internal market demands. Substantial accent is made to improve the genetic potential of cows and to increase their productivity. According to the statistic data at the beginning of 2011 there were 2663.3 thousand cows. This figure was 23.4 thousand more comparing with last year. There were nearly 590.2 thousand cows or 22.2% in agricultural companies and 2073.1 thousand or 77.8% in the households. The leading regions having the highest number of livestock are Vinnytsia (6.7%), Lviv (6.2%) and Khmelnytskyi (5.9%) regions.

Livestock in regions of Ukraine, thousands

During the first half of 2011 Ukraine exported 83.33 thousand tons of dairy products with total valuation in USD 294.95 mln. The main part of import belongs to raw milk. The leading suppliers are Belorussia, Lithuania and Germany. At the beginning of 2011, manufacturing of some dairy products grew/increased against the previous year, in particular, processed liquid milk by 6.8 percent, sweet butter – by 6.2 percent. On the other hand, production of butter spreads and fat mixes decreased by 15.9 percent, lactic and non-fermentable cheese by 7.1 percent, fat cheese by 6.4 percent and fermented milk products by 2.6 percent. The Ministry of Agrarian Policy and Food of Ukraine together with the National Academy of Agrarian Sciences has worked out the National program entitled “Modern Cattle Breeding” that envisages bringing the milk production volumes in 2015 to 18 million tons by raising cow head number up to 3.18 million (in agricultural enterprises up to 1.28 million heads).

 Beef Production

In 2011 several factors affected the situation in livestock and meat production in Ukraine. Firstly, the increase of business activity in some sectors of Ukraine’s economy and gradual improvement in people’s purchasing power had a positive impact on the foodstuff consumption by the population as a whole. Secondly, the tendency to reduce an import share in domestic consumption of meat and meat products remained.

The domestic livestock production increases a meat supply level of Ukraine. Thus, in the year of 2008 the import meat share was 23%, in 2009 – 19%, and in 2010 – 16%. Based on the statistics of 2010, meat consumption rate was 52 kg per capita, which exceeded the previous year index by 6.6% (+62% comparing to2000).

Presently the major challenges in the meat branch are severe competition, serious deficit of raw material, high dependence of price level on the farm market situation on the one hand, and on people’s purchasing power on the other hand.

Within the period f June 2010 – June 2011, a general tendency to reduction by 0,22 th t monthly is observed in beef and veal (fresh or chilled) production. However, quite recently (last six months) the output of the above-mentioned product has increased by 26.3%, but it is less than during the same period in 2010 by 46.7 points. 

The highest setback in beef and veal (fresh or chilled) production as compared with the previous month is recorded in April (-7.7% or – 0.4 th t) and in May (-8.3% or 0.4 th t). And in June 2011 in comparison with May the index reached its former level and beef and veal (fresh or chilled) output was equal to 4.8 th t again.

The last year (June 2010 – June 2011) was characterized by the reduction tendency (0,044 th t monthly) in beef and chilled veal production. Having reached its lowest point in January 2011 (0.3 th t), beef and chilled veal production revived and 1.7 th t was produced last month, which exceeded its May index by 66.7%. As compared with June 2009 and 2010 the production was reduced by 41.4 and 15.0%, respectively.

Pig production

The major pork producers in Ukraine are households forming nearly 57% of the whole pork production. The tendency is caused by the objective reaction to the reduction of the pig stock at the farms. The main leaders of swine livestock are Dnipropetrovsk (7%), Donetsk (6.7%), Kyiv (6.3%) and Cherkasy (6.1%) regions. Moreover, Donetsk and Ivano-Frankivsk regions achieved such growth due to agricultural enterprise performance. Odesa region made progress by increasing the number of private households. By the end of 2011 the stabilization of swine livestock has positive tendency in Ukraine. Comparing with the last year this figure is 3.4% less. However, during the last months the increase of swine livestock again tends to grow on average 15.3 thousand a month in every enterprise. Despite some fluctuation common for pork market development in Ukraine during the last year one can notice a general tendency to fresh and chilled pork increase on average 0.4 thousand tons monthly. It resulted in 16 thousand tons in the middle of 2011. Therefore, at the end of the year Ukraine will increase this figure three times comparing with the beginning of 2011. The reason is in favorable climatic conditions for grain production and also evident strong forage base with beef prices rising up faster.

Livestock in Ukraine in different regions, thousand heads (01 of August 2011)

The tendency regarding almost a lack of pork export is still real because of its deficit at domestic market. The main part of pork import belongs to pork from Europe and Brazil. But comparing with the same period last year the amount of imported pork is reduced by 52%. The decrease of Brazil pork is 12%.

Poultry industry

Poultry production by agricultural enterprises (65.2%) forms the biggest share in the structure of meat sales. Production of broiler meat at agricultural enterprises is 952.1 thousand tons now or 36 times as much as the same figure in 2000. This tendency becomes possible thanks to the budgetary support. Poultry meat tends to be a leading branch. Nowadays it is the most profitable and the largest branch in meat production.

Sales for Slaughter Structure of Cattle and Poultry in Live Weight by All Categories of Enterprises in 2000 and 2011

Dynamics of Broiler Meat Production, thous. tons

Thanks to the budgetary support, private investment attraction and use of own funds, production of broiler meat at agricultural enterprises grew from 26.7 thousand tons in 2000 to 952.1 thousand tons in 2010 or 36 times as much.