Kesarev Consulting presented the regulation concept and the draft law on milk-containing products on the East-European Dairy Congress

On March 02, 2016 Mikhail Sokolov, Executive Partner of Kesarev Consulting (Kiyv Office), presented the concept of regulation of milk-containing products’ turnover and the respective draft law during a specialised expert panel at the East European Dairy Congress held in Kyiv, which was moderated by him.

 The need to regulate the turnover of products manufactured with the use of substitutes of milk components was a result of the fact that producers of such products in many cases use words in their names as well as packaging formats that create false impression with the customers, that the respective products were produced exclusively from milk. In such a way the customers are being misled concerning the products’ composition and nutritional properties. Moreover, this situation makes the conscientious manufacturers of milk and milk products compete with the producers, who conceal that their products include the raw materials of non-milk origin, and that, in its turn, reduces the demand for milk in Ukraine.

 In order to solve the mentioned problem Kesarev Consulting experts have developed the regulation concept and the respective draft Law Nr. 3043-1, that:

– introduces the notion of «milk-containing products» as products produced from milk or dairy raw material and fats of non-dairy origin (the mass fraction of which does not exceed 50 percent in fat phase of product), without replacing the milk protein and lactose, with or without the use of food additives, and which may be perceived by consumers as products analogous to dairy ones and be consumed instead of such products;

– defines the requirements to their naming and labelling;

– provides for separate display of milk-containing products in retail;

– establishes responsibility for the violation of the mentioned requirements.

 The regulation norms provided by the draft Law Nr.3043-1 are conceptually in line with the approaches envisaged by the EU legislation.

 Approaches and instruments of solving the problem were presented to the panel’s participants: milk producers and processers, agrarian experts, representatives of industry associations, MPs of the Parliamentary agrarian committee, etc.

 The market participants expressed their support to the suggested regulation model in principle and to the approach chosen for solving the problem. Considering this, the work on advocating the draft Law on the level of Verkhovna Rada in order to secure its adoption as of the Law will continue.

 For information:

Development of the concept and respective draft legislation was one of the tasks the FAO and EBRD-funded Project “Partnership between Ukrainian Government and Private Sector on Development and Update of the Legislation in Agricultural and Food Production Sectors”, coordinated and fulfilled by experts of Kesarev Consulting.