Milkiland starts cheese exports to Turkmenistan

Ukrainian dairy producer Milkiland reported on December 16 it started exporting cheese to Turkmenistan. The contract with Turkmen buyers is for USD 2 mln of supplies till the end of 2014. If the deal goes well, Milkiland will occupy about 10% of Turkmen cheese market next year, according to the company’s release.

Alexander Paraschiy: Such diversification will not help much for the company to mitigate possible risks that exist in its cheese exports to Russia. The deal accounts for just about 1% of the company’s annual revenue in its “cheese and butter” segment, and the plan to occupy a 10% market share in Turkmenistan in just one year looks ambitious. At the same time, weinterpret the company’s move as the beginning of its expansion to central Asian countries, which may be welcomed by the stock market.