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Milkiland appreciates milk subsidy re-introduced by the Ukrainian Parliament

27.02.2012

The Milkiland Group appreciates that the Ukrainian Parliament supported Kateryna Vashchuk’s, who is well-known Ukrainian parliamentarian, amendment about a partial renewal of the government financial support for dairy farmers.

In January 2012, the first month the above regulation was in force, Milkiland‑Ukraine provided over UAH 5.6 million to milk producers as subsidies, including UAH 3.3 million paid to agricultural companies, UAH 0.9 million to production co-operatives, UAH 1.4 million to households. The average subsidy was UAH 234 per ton of milk or about 10 % of the cost of the raw milk purchased.

‘The renewed subsidies for the dairy industry are certainly a positive change for Ukrainian raw milk producers. Considering the challenging market conditions, particularly partial suspension of Ukrainian cheese exports to the Russian Federation, this help is especially important and timely. We are really grateful to the Ukrainian Parliament and the Government for so necessary support to the dairy industry,’ said Anatoliy Yurkevych, Chairman of the Board, Milkiland N.V.

According to the passed law, in 2012 70 per cent of the VAT accumulated by the dairy processors is to be allocated to subsidies for milk producers, whereas the remaining 30 per cent is remitted to a special fund of the State Budget. The respective sum paid by the Group in January 2012 totaled UAH 2.3 million.

About Milkiland N.V.

Milkiland is a TOP-5 CIS diversified dairy producer operating in Russia and Ukraine, offering a wide range of dairy products such as fresh dairy, cheese and butter, to satisfy consumers in their everyday needs for healthy and tasty foods.

In Russia, the company produces fresh dairy products at Moscow-based OJSC “Ostankino Dairy Combine” and sells under Ostankinskaya brand. Also, Dobryana Ukrainian cheese is sold in the most Russian regions. In Ukraine, the company operates 10 plants and offers a wide range of fresh dairy, cheese and butter under Dobryana and Kolyada brands. Milkiland exports dairy products from Ukraine to over 30 countries. Shares of Milkiland N.V. has been listed on the Warsaw Stock Exchange since December, 6, 2010.

For additional information please contact:

Viacheslav Roshkov, the press-centre,
Tel+ 380 44 200 5529
e-mail press@milkiland.nl