Russia-Ukraine Milk War Takes No Prisoners.

The Ukrainian government’s delegation of agriculture and veterinary specialists failed to persuade Russia to cancel its ban on milk imports. On January 20, Russia forbid imports of livestock-breeding products, and questioned Ukraine’s sanitary controls. The milk industry estimated monthly losses due to the ban at USD 50-60 mln, meat producers expect losses of USD 12-15 mln every month. Ukraine is a major exporter of milk products to Russia. In 2005 Ukraine’s exports of milk products to Russia amounted to ~USD 650 mln. Milk processing plants forecast a decrease in milk purchases by 30-40%, which will result in a lower purchasing price for milk, and a decrease in the number of cattle breaded. Concorde Capital: While Russia’s ban of meat exports seems to hold water, the decision to ban milk is most likely political, which, we believe, will be cancelled soon. Yushchenko discussed the milk ban yesterday with Russian President Validmir Putin and both ordered their governments to speed up the negotiation process.