Andrey Tabalov: The quality and taste of Ukrainian products enable us to compete effectively in the EU markets.
Ukrainian dairy companies are not only able to adapt to European standards but can also compete effectively in the EU market. A prime example is the dairy company "Voloshkove Pole," which significantly expanded its presence in Europe in 2024. How is the integration of the Ukrainian dairy business into European markets progressing, and which strategy has proven to be the most effective? In this interview, Andriy Tabalov, the CEO of "Voloshkove Pole" and head of the Eurointegration Committee of the SMPU, shares insights. We discuss how they managed to broaden their sales geography in the EU, which products have captivated European consumers, and what goals have been set for the current year.
About the Dairy Business
— At the end of last year, you announced that in 2024, "Voloshkove Pole" began supplying products to the EU. Can you elaborate on which countries you managed to increase supplies to?
For "Voloshkove Pole," 2024 has indeed become a year of Eurointegration. We have worked diligently to expand our export geography and start delivering products to EU countries, and this has come to fruition in 2024.
A significant milestone that allowed us to boost exports was obtaining an EU number for our enterprise—Pervomaysk MKK (part of "Voloshkove Pole" — ed.) at the end of 2023. In January 2024, we commenced our first deliveries. We focused on our well-known brand, specifically condensed milk under the trademark "Malchik." As of this year, I can say that we are now supplying products to more than 10 EU countries (Germany, Poland, Czech Republic, Italy, Spain, Bulgaria, and others), and in some of these countries, we have multiple distributors, particularly in the Baltic states.
This decision has positively influenced the export volumes of our dairy processing enterprises, which, overall, increased by 15% in 2024.
In the near future, we see strengthening our dairy product presence in the EU markets and developing the US market as a priority for exports. Glazed cheese curds, fermented cheeses, and butter have the potential to attract American consumers.
— Which European countries do you consider the most promising for your business?
The most promising countries for us are the central EU countries, where the largest Ukrainian population resides: Germany, Poland, Bulgaria, and the Baltic states.
According to the results of 2024, the highest volumes of condensed milk were achieved by distributors from Germany, Poland, and the Baltic states. However, we have only just begun, so we will see what the results will be this year.
— Do Europeans like Ukrainian condensed milk?
Initially, we had doubts; we wondered how European consumers would perceive our product. Would they like the assortment? How would the "Khlopchik" brand look on shelves among other brands tailored for the European consumer? We can say that all the answers to these questions have been very positive. The condensed milk from Pervomaysk MKK has pleased Europeans and is gradually finding its niche, pushing out competitors.
Europeans prefer soft packaging like Doy-pack more than the standard metal can, which surprised us. The "Iriskа" in a 500g glass jar also performed very well because people can see exactly what they are buying and at what price.
We also see that there is high demand for lactose-free condensed milk, which is currently produced only by Pervomaysk MKK. European consumers have also enjoyed the condensed milk with vanilla, cocoa, and coffee! This is our "trump card," our fantastic assortment, and it speaks for itself.
– How well has the European market met expectations? Which countries is the enterprise working with, and what are your plans for 2025? Further expansion?
The decision to export condensed milk to EU countries has turned out to be very positive and has met all expectations. Our plans for 2025 are optimistic. We want to enhance our sales with existing partners and expand the sales geography in other EU countries, conveying to everyone that the condensed milk from Pervomaysk MKK is the best, with a taste "like in childhood."
To achieve this, we will continue to actively participate in various professional exhibitions, as this format has proven effective. I would like to note that in October 2024, we participated in the SIAL Paris 2024 exhibition, and this year we plan to actively participate in the Anuga 2025 exhibition in Cologne. These exhibitions are a significant international platform that defines the company's status, allowing us to communicate with partners, identify new horizons, and conclude new contracts.
– What specific product categories do you plan to increase exports of to the European Union in the near future?
We can export only two types of products from Pervomaysk MKK — a wide range of condensed milk in various packaging (370g metal can, Doy-packs weighing 290g, 440g, 1000g, sleeves of 3-4kg, etc.) and butter with a fat content of 82.5%, both bulk and packaged (180-200g).
I would also like to mention that we receive many calls from European partners interested in purchasing skimmed milk powder and whey powder. This product is always in demand among EU clients, and the export volume of this product depends solely on market prices. We are working to ensure that we can supply skimmed milk powder and whey to the EU market in 2025, and we are preparing for this.
— In 2024, you planned to open a dairy farm in the Cherkasy region and announced a gradual transition to a full production cycle. From raw milk to finished dairy products. Have you abandoned these intentions? Should we expect the opening of this new business direction in 2025?
We have not abandoned our plans. Moreover, the new farm is already operational. We are implementing this project in the Cherkasy region.
We have purchased 200 Jersey breed heads, and they are already being milked, providing Ukrainians with their delicious and rich milk. However, there are certain cosmetic and technical aspects that we are still completing.
— What goals have you set for your businesses in 2025?
We have set the goal of surviving in the challenging conditions of modern Ukraine. In fact, the most crucial task is to retain our employees, primarily because without people, nothing can be accomplished.
Secondly, we aim to maintain our production volumes. And, of course, we will continue to support the Armed Forces of Ukraine. We believe that our people will triumph in the war.
About the SMPU and the Eurointegration Committee
— You are currently the head of the Eurointegration Committee of the SMPU, and in 2024, a series of joint events and conferences for producers between the Ukrainian SMPU and the European EDA were held. How effective is this format of cooperation?
The joint events of the SMPU and EDA held in 2024 demonstrated high effectiveness. The exchange of experiences, the signing of a cooperation memorandum in May 2024, and a joint statement on the need to extend autonomous trade measures in November 2024 allowed us to significantly align the positions of Ukrainian and European milk producers.
In particular, we reached an agreement on the necessity of enhancing cooperation to create a roadmap for the eurointegration of the Ukrainian dairy industry, which will allow us to demonstrate compliance with European standards and promote common interests on the international stage.
We plan to continue our cooperation with the EDA in 2025. Joint events enable us not only to address current issues but also to build long-term partnerships. We are convinced that by joining forces, we can achieve even greater success.
— In recent years, we have seen fierce conflicts between, for example, Polish and Ukrainian farmers. What are the relationships like between Ukrainian and European dairy producers? Are they similarly contentious?
Not at all. Despite existing differences in interests, the relationships between Ukrainian and European farmers and dairy processors, particularly within the framework of cooperation between the SMPU and EDA, are constructive.
We understand that we have common interests, such as ensuring market stability, maintaining high-quality standards, and protecting producers' interests. That is why we strive for dialogue and seek compromise solutions.
Joint events such as conferences and roundtables help strengthen trust between Ukrainian and European farmers. We recognize that unity is the key to our industry's success, and we are not prepared to repeat the mistakes of farmers.
— What are the plans of the Eurointegration Committee of the