Overview of the Ukrainian Dairy Industry

The Ukrainian dairy sector continues to be a vital component of the nation's agricultural output, showcasing resilience in the face of economic and geopolitical adversities. In 2023, Ukraine managed to produce approximately 8.1 million tons of milk, solidifying its presence in the global dairy market. The country maintains robust export relations with the European Union, China, and the Middle East.

Milk Production and Processing

In 2023, Ukraine's dairy production reached about 8.1 million tons of milk. Of this, approximately 4.5 million tons were processed domestically into a variety of dairy products such as cheese, milk powder, and whey. Cheese production alone accounted for roughly 200,000 tons, while milk powder and whey production were around 150,000 tons each.

Dairy Cattle and Goats

As of 2023, Ukraine's dairy cattle population was around 1.5 million. The total number of cattle, including both dairy and beef, is expected to reach approximately 2.294 million by the end of 2024. The goat milk sector is less developed, with limited data available regarding 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. Additionally, 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, with cheese, milk powder, and whey being the primary exports. The main export destinations include the EU, China, and the Middle East. Conversely, imports stood at about 80,000 tons, mainly consisting of cheese and butter from the EU and neighboring regions.

Significant Events Influencing the Dairy Industry

Several critical developments have shaped the Ukrainian dairy industry landscape in recent years:

• By June 2024, raw milk prices rose to 35.51 euro cents per kg due to increased procurement costs.
• There was a notable surge in demand for Ukrainian dairy products from the EU and China in 2023 and 2024.
• Geopolitical tensions in 2023 affected supply chains, boosting exports of butter, cheese, and buttermilk.
• Tetra Laval provided EUR 10 million worth of power generators as humanitarian aid.
• 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.
• Collaborations with Moldova have impacted Eurointegration efforts in livestock and agricultural exchanges.
• Infrastructure challenges, such as damage from Russian drone attacks on a farm in Chernihiv's Nizhyn district, have posed obstacles.
• The Minister of Agrarian Policy and Food emphasized potential dairy export growth to Lebanon.
• Projected industry losses could reach up to UAH 1 billion by 2024.
• Import dynamics have led to price discrepancies, especially noticeable between Polish and Ukrainian butter.
• Agreements between Washington and Kyiv ensure Black Sea shipping corridors, with a 10% import tariff from Washington.
• Dairy product price stabilization has been achieved through supermarket promotions and reduced raw milk costs.
• Discussions on palm oil utilization in food products continue, with no prohibition enforced yet.
• Brussels is considering reimposing tariffs on Ukrainian agricultural exports, potentially costing producers up to €2.9 billion annually.

Ukraine has significantly increased its dairy exports, surpassing imports, even amidst the challenges of war. Last year, Ukraine exported 118,000 tons of dairy products, outperforming imports by nearly 100%. The export revenue reached $296.8 million, a 16% increase from 2023 and a 20% rise from 2021. Powdered and condensed milk dominated the export categories, accounting for 25%, while cheeses made up 18%. In contrast, Ukraine imported 60,270 tons of dairy products valued at $290 million, with cheeses comprising 78% of these imports. Despite the ongoing war, the industrial cattle sector experienced a 1% increase in the number of cows. The Poltava, Cherkasy, Chernihiv, Kyiv, and Vinnytsia regions together hold 51% of Ukraine's industrial cattle population, leading in numbers with 52,700, 44,000, 35,400, 34,000, and 31,500 head respectively. Noteworthy growth in industrial cattle populations was seen in the Mykolaiv region with a 14% increase and the Ternopil region with a 10% rise. Over 90% of raw milk processed is sourced from industrial farms. Currently, 125 dairy farms in Ukraine are either under construction or being modernized.

French and Spanish unions protest against Mercosur and Ukraine imports, fearing destabilization of the European agriculture sector due to increasing imports.

Modified: 2025/05/18

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