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Ukraine Milk Communities – Phase 3

Ukraine

Social & business context
Smallholders produce more than 80% of Ukrainian milk, but mainly for personal use.  This sector is made up of subsistence farmers lacking expertise. Incomes from milk are low and milk production is declining.
Danone distributes a large range of products (yoghurts, milk, cream, etc.) in Ukraine and wants to support the development of family dairy farming to diversify and secure it milk supply.

Solution
With the support of the Danone Ecosystem Fund, Danone Ukraine and its local partner Heifer Ukraine have co-created the “Ukraine Milk Communities” project to support the development of family dairy farming in Ukraine. The project is building new farms and renovating and equipping existing ones. The new farms are established ensuring the development and the implementation of milk cooperatives. The project will also develop an economic network around the new farming structures to sustain their activities. 

Social & business impacts
The project secures and improves the revenues of small-scale farmers, supports the development of family farming and combats the rural migration from the Ukrainian countryside.
By supporting the development of family dairy farming, Danone Ukraine reinforces its product quality, secures its long term sourcing and enhances its brand image. 
This project contributes to increasing and/or safeguarding the revenue of local communities and contributes to local economic development, thereby combating rural migration.