Overview of the Ukrainian Dairy Industry

The Ukrainian dairy sector remains a cornerstone of the nation's agricultural output, producing approximately 8.1 million tons of milk in 2023. This production highlights Ukraine's significant presence in the global dairy market, with robust export relations contributing to its economic resilience.

Milk Production and Processing

In 2023, Ukraine produced around 8.1 million tons of milk, with about 4.5 million tons processed domestically into various dairy products such as cheese, milk powder, and whey. Cheese production reached approximately 200,000 tons, while milk powder and whey each amounted to roughly 150,000 tons.

Dairy Cattle and Goats

As of 2023, the dairy cattle population in Ukraine was estimated at about 1.5 million. The total cattle population, including both dairy and beef cattle, is projected to reach approximately 2.294 million by the end of 2024. The goat milk sector remains less developed, with limited data available on its population.

Key Enterprises in the Dairy Market

Prominent dairy processing companies in Ukraine include Terra Food, Lactalis Ukraine, Milk Alliance, Yagotynsky Butter Plant, and Kherson Dairy Plant. Notable dairy farms include Astarta Holding, Mriya Agro Holding, Nibulon Agro, Kernel Holding, and Ukrlandfarming.

Export and Import of Dairy Products

In 2023, Ukraine exported approximately 500,000 tons of dairy products, primarily to the EU, China, and the Middle East. The main exports included cheese, milk powder, and whey. Conversely, imports stood at about 80,000 tons, consisting mainly of cheese and butter from the EU and neighboring regions. Notably, Ukraine's export revenue reached $296.8 million, marking a 16% increase from the previous year.

Significant Events Influencing the Dairy Industry

The Ukrainian dairy industry has experienced several key developments in recent years. By June 2024, raw milk prices rose to 35.51 euro cents per kg due to increased procurement costs. The demand for Ukrainian dairy products surged in the EU and China during 2023 and 2024. Geopolitical tensions affected supply chains, boosting exports of products like butter, cheese, and buttermilk.

Tetra Laval provided EUR 10 million worth of power generators as humanitarian aid, while Minister of Agriculture Vitaliy Koval advocated for increased investment in high-value dairy processing to enhance exports. Cheese exports increased by 40.3% in the first ten months of 2024 compared to 2023. Infrastructure challenges, such as damage from Russian drone attacks, have posed obstacles. Despite ongoing geopolitical challenges, Ukraine continues to negotiate with the EU to amend tariff quotas for dairy products, emphasizing cooperative relationships with EU producers.

Ukraine's relationship with the Central Asian dairy market is also significant for the industry's development.

Modified: 2025/07/25


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