June 17 2002, 15:54 UNIAN

Officials do not expect milk price recovery until September

According UNIAN with a reference to Vice Prime Minister of Ukraine Mr. Kozachenko, one should not expect price recovery of milk until September 2002. However, market has already stabilized to certain extend but situation is difficult nevertheless. Mr. Kozachenko attributes price stabilization in the recent weeks to government's effort to refund 100% of VAT to exporters of dairy products (while exporters of other agricultural commodities continue to have problems with VAT refund - APK-Inform). He also thinks that higher activity of Ukrainian trade missions in India, China, Indonesia, countries of the Middle East have provided price support. These countries are traditional importers of Ukrainian dairy products but they usually bought dairy products through middlemen, which at the moment Ukrainian companies are establishing direct trade relations. Another reasons for price stabilization, according to Vice Prime Minister was in more active purchases of State Reserve and tougher control of quality of imported dairy products. Mr. Kozachenko also pointed out that around 50% of imported butter and 30% of yogurts are forged.