Ukraine Dairy Industry Analysis 2023

The Ukrainian dairy industry represents a crucial component of the nation's agricultural output, markedly impacting the economy despite geopolitical and economic challenges. Ukraine continues to play a vital role in the international dairy market, maintaining robust engagements with the European Union, China, and the Middle East.

Milk Production and Processing

In 2023, Ukraine's milk production was approximately 8.1 million tons. Of this, about 4.5 million tons underwent domestic processing, leading to the production of various dairy products, including cheese, milk powder, and whey. The industry, however, witnessed a slight decline due to sector-specific challenges.

Dairy Cattle and Goats

The dairy cattle population in Ukraine stood at around 1.5 million in 2023. By October 1, 2024, the total cattle population, including beef cattle, was approximately 2.294 million, with dairy cows accounting for 1.243 million. Goat milk remains a smaller segment, with limited available data.

Cheese, Milk Powder, and Whey Production

Cheese production in 2023 was estimated at 200,000 tons, enough to satisfy domestic demand and support robust export markets. Milk powder and whey production accounted for about 150,000 tons, both holding strong export potential.

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

In 2023, Ukraine exported approximately 500,000 tons of dairy products, mainly comprising cheese, milk powder, and whey. The primary export destinations included the EU, China, and the Middle East. Conversely, dairy imports were around 80,000 tons, featuring products like cheese and butter from the EU and neighboring regions.

Significant Events in Ukraine's Dairy Industry

• June 2024: Average raw milk prices reached 35.51 euro cents per kg, reflecting increased procurement costs.
• 2023-2024: Ukrainian dairy exports experienced heightened demand, particularly from the EU and China.
• 2023: Geopolitical tensions impacted supply chains and production capacities.
• Significant increases in butter, cheese, and buttermilk exports.
• Tetra Laval contributed EUR 10 million worth of power generators as humanitarian aid.
• Minister of Agriculture Vitaliy Koval advocated for investment in high-value dairy processing to improve export capacity.
• Ukraine is moving towards abolishing mandatory agricultural exporter registration, instead focusing on a minimum export price system.
• Cheese exports surged by 40.3% in the first ten months of 2024 compared to the previous year.
• The industry aims to expand exports, innovate production, and diversify markets amidst internal and external challenges.
• The ongoing Russian food embargo continues to influence Ukraine's agricultural trade dynamics.
• Collaborations with Moldova during Eurointegration processes impact livestock and agricultural trade.
• A dairy farm in Chernihiv's Nizhyn district was damaged by Russian drone attacks.
• Ukraine's Minister of Agrarian Policy and Food identifies potential in boosting dairy exports to Lebanon.
• The industry faces potential losses of UAH 1 billion in 2024.

Modified: 2025/03/10

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