11:34 25.04.2014

Bila Tserkva dairy plans to use EU quotas to supply whole-milk products

2 min read

Bila Tserkva dairy factory, (the Premialle and Bila Linia trademarks), part of the Terra Food Group, plans to supply its products to the European Union market, a member of the supervisory board of Terra Food Vadym Chaharovsky has told Interfax-Ukraine.

He said that the factory is ready to use the EU quotas for whole-milk products, which amount to 8,000 tonnes.

"According to the State Veterinary and Biosecurity Service of Ukraine, only two companies can export milk products in line with the EU requirements to the EU market, and one of them is Bila Tserkva dairy factory, which is part of Terra Food," he said.

"We could supply this volume [of 8,000 tonnes] without problems, as in 2013 Bila Tserkva dairy factory produced over 40,000 tonnes of whole-milk products," Chaharovsky said.

He said that even under the relaxed procedure for assigning the EU number to the company it could take at least six months.

"Separate laws that harmonize our laws in line with EU requirements have to be passed. This is a very complicated issue, as amendments to the law on the quality and safety of foodstuff have to be made, and some new laws have to be passed: on fodder and cattle identification," he added.

The expert also said that now the negotiations on the increase of the quotas for the Ukrainian dairy sector are underway. At present, along with whole-milk products, the country has quotas for duty free imports of 1,500 tonnes of butter and 1,500 tonnes of powder milk.

"There is no quota for cheese, and this means unrestricted supplies from Ukraine to the EU," he said.

Terra Food, founded in 2006, is one of the largest Ukrainian industrial and commercial holdings, which includes three fields of business: dairy, meat and agricultural.

The production capacity of the ten holding's companies is 31,000 tonnes of cheese, 78,000 tonnes of butter, as well as 61,000 tonnes of dairy products a year. The company sells dairy products under the brands of Premialle, Bila Lіnіya, Tulchynka, FERMA, and Vapniarka.

Terra Food has invested more than $30 million in the construction of Bila Tserkva dairy factory, which was launched in the middle of 2008.

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