British consulting firm Kite Consulting has published an assessment of the impact of the Ukraine crisis. According to Kite, Ukraine’s and Belarus’ dairy exports to the world market exceed Russian imports from the two countries. The net loss of Ukraine’s, Belarus’ and Russia’s trade in dairy products would mean a loss of about 1.2 billion kg/year of raw milk equivalent to the world market.
In the short term, according to Kite Consulting, milk exports from Ukraine will cease due to the military actions. In addition, punitive Western sanctions could stop all Belarusian milk exports, except those to Russia and Kazakhstan.
Russia could be forced to stop all ongoing Western milk imports as a result of the sanctions, as it will be excluded from international banking systems. Over time, the rise in commodity prices and a global economic downturn as a result of high energy prices could reduce global demand for dairy products.
Photo: pixabay, view on Kyiv