Ukraine Dairy Industry Analysis 2023

The Ukrainian dairy industry represents a vital aspect of the nation's agricultural output, significantly impacting the economy despite facing geopolitical and economic hurdles. Ukraine continues to hold a crucial position within the international dairy market, with strong engagements across the European Union, China, and the Middle East.

Milk Production and Processing

In 2023, Ukraine's milk production was estimated at approximately 8.1 million tons. Of this volume, about 4.5 million tons were processed domestically, resulting in the production of varied dairy products such as cheese, milk powder, and whey. However, the industry witnessed a slight decline due to sector-specific challenges.

Dairy Cattle and Goats

The dairy cattle population in Ukraine was around 1.5 million in 2023. By October 1, 2024, the total cattle population, including beef cattle, reached roughly 2.294 million, with dairy cows making up 1.243 million of that figure. Goat milk remains a smaller segment, with limited production data.

Cheese, Milk Powder, and Whey Production

Cheese production in 2023 stood at approximately 200,000 tons, meeting domestic demand and feeding into robust export markets. Milk powder and whey production were recorded at about 150,000 tons, both showing strong export prospects.

Key Enterprises in the Dairy Market

Major Dairy Plants

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

Major Dairy Farms

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

Export and Import of Dairy Products

Ukraine's dairy product exports in 2023 reached approximately 500,000 tons, predominantly featuring cheese, milk powder, and whey. The main export areas were the EU, China, and the Middle East. Conversely, imports were around 80,000 tons, mainly involving cheese and butter from the EU and adjacent regions.

Significant Events in Ukraine's Dairy Industry

• June 2024: Average raw milk prices reached 35.51 euro cents per kg, indicating rising procurement costs.
• 2023-2024: Increased demand for Ukrainian dairy exports, especially from the EU and China.
• 2023: Geopolitical tensions affected supply chains and production capacity.
• Noteworthy export increases were seen in butter, cheese, and buttermilk.
• Tetra Laval's donation of EUR 10 million worth of power generators as humanitarian aid.
• Agriculture Minister Vitaliy Koval advocated for investments in high-value dairy processing to enhance export capacity.
• Ukraine aims to eliminate obligatory agricultural exporter registration, focusing instead on a system based around minimum export prices.
• Cheese exports surged by 40.3% over the first ten months of 2024 compared to the previous year.

The Ukrainian dairy industry is directing efforts towards expanding exports, innovating production, and diversifying markets while navigating various internal and external impediments. The ongoing Russian food embargo continues to influence Ukraine's agricultural trade. Opportunities and challenges persist as Ukraine works through Eurointegration processes alongside Moldova, impacting livestock and agricultural trade. Additionally, a dairy farm in the Nizhyn district of the Chernihiv region suffered damage from Russian drone attacks. Ukraine's Minister of Agrarian Policy and Food, Vitaliy Koval, identifies potential in increasing dairy exports to Lebanon.

Modified: 2025/02/04

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