Social project promotes local milk sales at wholesale prices

Ukraine's Ministry of Agrarian Policy and Food continues to implement the "From the Village – To the City" social project nationwide, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.

Ministry experts say the project encourages agricultural enterprises of all forms of property, farms and private households to sell whole milk a producer prices to people in regions without intermediaries. This milk is sold at special point of sale organized with the help of the local authorities.

The project is currently underway in the Volyn region. Local government officials in Lutsk allocated 14 sales points for  agricultural producers to sell milk directly. The same points of sale were opened in Kovel, Vladimir-Volynsky, Novovolynsk and district centers of the region.

Experts say the outlets give urban residents and state-funded organizations the opportunity to purchase natural cow milk at lower price. The program benefits agricultural producers as well. Prices of milk sold directly to people are significantly higher than the prices of procurement enterprises.

Experts stress the importance of promoting domestic sales of agricultural products manufactured by small and medium-sized agricultural enterprises of all forms of property, farm enterprises and private peasant farms. They point out that government policy should be aimed at creating the conditions under which small and medium-sized farmers, agricultural service cooperatives and individual farms have the priority for the domestic sales of agricultural products. At the same time, large-scale processing enterprises in the industry will get maximum support for their products in foreign markets.

Experts explain the need for such policy by the fact that currently there are 4.3 million private peasant farms and more than 40 thousand farm enterprises in Ukraine. They co-produce almost a half of the total agricultural production, especially labor-intensive production. 

According to the State Statistics Service, private households produce 86% of vegetables, 78% of milk, 75% of beef, 57% of pork, 22% of grain and 19% of poultry.

In January-September 2013 total milk production amounted to 100.8 % compared with the corresponding period in 2012.