This report was commissioned by the EBRD to analyze and identify constraints and opportunities in the Ukrainian dairy sector and review the results of a rural household dairy farmer training. The report is structured in three chapters. The first reviews the overall sector in Ukraine and explains clearly why rural household production is struggling to compete. The second chapter presents commercial and household dairy farm investment models, exploring whether the latter can modernize their technology and still be profitable. The third gives an overview of the dairy farm training activities that took place in the Sumy Oblast of Ukraine.
The report explores the roots of rural household milk quality and supply problems, which include poor credit access and animal nutrition knowledge, and suggests solutions such as stronger state support policies, regulation of antiobiotics use in household farms, and the introduction of price premiums by processors to reward rural household farms that produce higher quality milk.