Restoration of EU Quotas Poses Unequal Competition Threat to the Ukrainian Dairy Industry

The restoration of quotas and tariffs on dairy product imports from Ukraine to the European Union will pose a serious problem for the domestic dairy industry. This was emphasized by Andriy Tabalov, the General Director of “Voloshkove Pole” and the head of the Eurointegration Committee of the SMPU.

This is reported by AgroReview

Export Restrictions and Market Risks

The head of “Voloshkove Pole” highlighted that the company is currently not making significant shipments of its dairy products to the European market, so these changes will not have a substantial impact on it. However, for the Ukrainian dairy industry as a whole, the return of quotas will be a significant barrier, as it concerns the restriction of exports of such important products as condensed and powdered milk, fresh dairy products, as well as butter.

“The forecast is clear: Ukrainian dairy processors will supply less product to the EU, while remaining defenseless in their own market. Ukraine does not impose any restrictions or quotas on the import of dairy products from Europe. This puts Ukrainian producers at a disadvantage,” he said.

Threat to National Producers

Andriy Tabalov notes that for Ukrainian consumers, the situation may initially seem advantageous: an excess of products in the market can temporarily lower prices for milk, cheeses, and other dairy products. However, for domestic producers, this creates additional difficulties and intensifies competition with imported products.

The problem of a large number of imported goods, particularly Polish cheeses, is especially acute, as they capture the market thanks to generous subsidies from the European Union. Ukrainian producers do not receive such support, making competition unequal. Andriy Tabalov is convinced that the trade balance should be mutual, and the state should protect the interests of the national producer.