Ukraine Dairy Industry Analysis 2023

The Ukrainian dairy industry is a fundamental component of the country’s agricultural sector, showing resilience amidst geopolitical and economic adversities. In 2023, Ukraine continued its active participation in the international dairy market through substantial exports to the European Union, China, and the Middle East. This detailed analysis explores milk production and processing, cattle and goat demographics, market enterprises, and current trends impacting the dairy market.

Milk Production and Processing

In 2023, Ukraine's milk production reached approximately 8.1 million tons. Of this, around 4.5 million tons underwent domestic processing to manufacture diverse dairy products such as cheese, milk powder, and whey. Despite sector-specific challenges, the industry maintained stable operations. Cheese production volumes were roughly 200,000 tons, while the production of milk powder and whey was about 150,000 tons.

Dairy Cattle and Goats

Ukraine's dairy cattle population in 2023 was estimated at around 1.5 million. By October 1, 2024, the total cattle population, including beef cattle, had grown to approximately 2.294 million, with dairy cows comprising 1.243 million. The country's goat milk segment remains less developed, with limited data available on goat populations.

Key Enterprises in the Dairy Market

Major Dairy Plants: The Ukrainian dairy market is characterized by prominent enterprises such as Terra Food, Lactalis Ukraine, Milk Alliance, Yagotynsky Butter Plant, and Kherson Dairy Plant. Major Dairy Farms: Significant farming entities 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 cheese, milk powder, and whey, to key markets such as the EU, China, and the Middle East. On the other hand, imports rounded out to about 80,000 tons, comprising mainly of products like cheese and butter sourced from the EU and neighboring regions.

Significant Events in Ukraine's Dairy Industry

• By June 2024, average raw milk prices rose to 35.51 euro cents per kg, reflecting heightened procurement costs.
• Heightened demand for Ukrainian dairy exports during 2023-2024 was markedly noted, especially from the EU and China.
• Geopolitical tensions in 2023 influenced supply chains and production capacities, leading to an increase in exports of butter, cheese, and buttermilk.
• Tetra Laval provided EUR 10 million worth of power generators as part of humanitarian aid.
• Minister of Agriculture, Vitaliy Koval, emphasized the need for more investment in high-value dairy processing to augment export capacities.
• Efforts to remove mandatory agricultural exporter registration aim to adopt a minimum export price system.
• Ukraine witnessed a 40.3% surge in cheese exports in the first ten months of 2024 compared to the previous year.
• Collaborations with Moldova amidst Eurointegration processes impacted livestock and agricultural trade.
• Infrastructure in the dairy sector, such as a farm in Chernihiv’s Nizhyn district, was affected by Russian drone attacks.
• The Ukrainian Minister of Agrarian Policy and Food sees potential growth in dairy exports to Lebanon.
• Projected industry losses amounting to UAH 1 billion by 2024.
• Imports contributed to widening price spreads, particularly between Polish and Ukrainian butter.
• Washington and Kyiv agreed to secure shipping corridors in the Black Sea, with Washington imposing a 10% import tariff.
• Stabilization in dairy product prices resulted from supermarket promotions and declining raw milk costs.

Modified: 2025/04/14

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