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forecast due to extensive dry weather in key producing areas. Wheat production forecasts for Argentina and Kazakhstan also were scaled back as prolonged dry and hot weather has degraded crop conditions. The FAO’s latest forecast for global coarse grains production for 2023 has remained virtually unchanged at 1.511mn tonnes; however, it represents a 2.7% (39.2mn tonnes) increase from the previous year. “Brazil is experiencing conducive overall weather conditions this year, underpinning the excellent prospects, with production seen reaching a record high in 2023,” the FAO said.
Small-scale producers represent roughly 65% of all agricultural businesses in Ukraine and contribute around 10% of the total production of cereals and leguminous crops. Nearly 9% of these producers' farmland is currently contaminated. In regions located along the frontline, this figure jumps to 19%. The estimated cost of demining is $1,781/ha. The expense associated with ensuring the safety of farmland owned by over 22,000 small producers could amount to as much as $250m.
The Ukrainian milk processing industry plans to expand and increase its export volumes. The head of the Union of Dairy Enterprises, Vadym Chagarovsky, said that the long-term strategy for the development of the dairy industry envisages increasing dairy product production for the domestic market to seven million tons and exporting one million tons. "We expect the construction of five new milk processing enterprises. These will be for the production of baby food, cheese-making, for export, and two more to cover the needs of the domestic market. Implementing these projects requires about €1B of investment," Chagarovsky said. He emphasized that most processing enterprises need modernization, requiring a €500M investment. According to him, in the long term, 80-90 milk processing enterprises will remain in Ukraine because 112 are too many for the domestic dairy industry. At the same time, the first milk factory, Nabil in Ukraine, produced its first batch of products, which have already reached retail chains. It is noted that Canadian investors financed the plant
84 UKRAINE Country Report November 2023 www.intellinews.com