Overview of the Ukrainian Dairy Industry
The Ukrainian dairy sector is an integral part of the nation's agricultural landscape, producing approximately 8.1 million tons of milk in 2023. This substantial production highlights Ukraine's significant role in the global dairy market, with exports being crucial for the country's economic stability.
Milk Production and Processing
In 2023, Ukraine's milk production reached around 8.1 million tons. Out of this, approximately 4.5 million tons were processed domestically into various dairy products, including cheese, milk powder, and whey. Cheese production was about 200,000 tons, while both milk powder and whey each accounted for approximately 150,000 tons.
Dairy Cattle and Goats
The dairy cattle population in Ukraine was estimated at about 1.5 million in 2023. The total cattle population, including both dairy and beef cattle, is projected to reach around 2.294 million by the end of 2024. The goat milk sector remains less developed, with limited available data.
Key Enterprises in the Dairy Market
Major 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, mainly targeting markets in the EU, China, and the Middle East. The primary exports included cheese, milk powder, and whey. Imports totaled about 80,000 tons, focusing on cheese and butter primarily 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
Recent years have seen pivotal developments in the Ukrainian dairy industry. By June 2024, raw milk prices rose to 35.51 euro cents per kg due to increased procurement costs. Demand surged in the EU and China during 2023 and 2024. Geopolitical tensions have impacted 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. Despite infrastructure challenges from Russian drone attacks, Ukraine continues to negotiate with the EU to amend tariff quotas, emphasizing cooperative relationships with EU producers.
The Central Asian dairy market is also significant for Ukraine's industry. Although dairy exports decreased by 19% in August 2025, exports increased year-over-year with a 26% rise compared to August 2024. From January to August 2025, overall dairy exports grew by 13% in physical terms and 49% in monetary terms.
Despite falling demand and prices for exchange-traded dairy products in Europe and the USA, Ukrainian procurement prices for raw milk have remained stable. The average price of extra-grade milk was UAH 17.45/kg without VAT, a slight increase from the previous month. Ukraine saw a significant increase in butter exports to Kazakhstan. Ukrainian butter imports increased by 3.7 times to 375 tons, and in value terms by 5.3 times to $2.8 million, capturing 10% of the market.
Ukraine's dairy sector is showing resilience and growth amid ongoing challenges. Despite the war, Ukrainian business demonstrates resilience and economic sustainability. Ukraine’s dairy sector is developing, investing, growing in volume and quality, and adapting its legislative framework as part of the European integration process.
Modified: 2025/10/16