Ukrainian Dairy Industry Analysis 2023

The Ukrainian dairy sector remains a cornerstone of the country's agricultural output, showing resilience despite economic and geopolitical challenges. With solid export relationships with the European Union, China, and the Middle East, Ukraine continues to be an influential player in the global dairy market.

Milk Production and Processing

In 2023, Ukraine produced approximately 8.1 million tons of milk. Of this, about 4.5 million tons were 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 accounted for around 150,000 tons. These figures highlight the industry's resilience and operational stability.

Dairy Cattle and Goats

In 2023, Ukraine had around 1.5 million dairy cattle. By the end of 2024, the total cattle population, including dairy and beef cattle, was approximately 2.294 million. Limited data on the goat population points to less development in the goat milk segment.

Key Enterprises in the Dairy Market

Major dairy plants operating in Ukraine include:

• Terra Food
• Lactalis Ukraine
• Milk Alliance
• Yagotynsky Butter Plant
• Kherson Dairy Plant

Notable dairy farms are:

• Astarta Holding
• Mriya Agro Holding
• Nibulon Agro
• Kernel Holding
• Ukrlandfarming

Export and Import of Dairy Products

In 2023, Ukraine exported about 500,000 tons of dairy products, primarily to the EU, China, and the Middle East, with cheese, milk powder, and whey being the main exports. Imports were around 80,000 tons, mainly involving cheese and butter from the EU and nearby regions.

Significant Events in Ukraine's Dairy Industry

A series of significant developments have influenced the Ukrainian dairy market:

• By June 2024, raw milk prices had risen to 35.51 euro cents per kg, driven by higher procurement costs.
• Demand for Ukrainian dairy products surged in 2023 and 2024, especially from the EU and China.
• Geopolitical tensions in 2023 affected supply chains, boosting exports of butter, cheese, and buttermilk.
• Tetra Laval contributed EUR 10 million in power generators as humanitarian aid.
• Minister of Agriculture, Vitaliy Koval, advocated for increased investment in high-value dairy processing to enhance exports.
• Talks on eliminating mandatory agricultural exporter registration and introducing minimum export price systems.
• A 40.3% increase in cheese exports during the first ten months of 2024 compared to 2023.
• Collaboration with Moldova influenced Eurointegration efforts in livestock and agricultural trade.
• Infrastructure challenges, like the damage from Russian drone attacks on a farm in Chernihiv’s Nizhyn district.
• The Minister of Agrarian Policy and Food emphasized potential dairy export growth to Lebanon.
• Projected industry losses of up to UAH 1 billion by 2024.
• Import dynamics resulted in price discrepancies, particularly between Polish and Ukrainian butter.
• Agreements between Washington and Kyiv to secure Black Sea shipping corridors, with a 10% import tariff imposed by Washington.
• Dairy product price stabilization was achieved through supermarket promotions and declining raw milk costs.

Ukraine's discussions on palm oil in food products remain ongoing, even though no ban has been enacted. Moreover, last year, the European Dairy Association (EDA) celebrated Europe Day on 9 May 2024 alongside the Ukrainian lactosphère in Kyiv, where a Memorandum of Understanding was signed.

Modified: 2025/05/04

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