Ukrainian Dairy Industry Analysis 2023

The Ukrainian dairy sector remains a pivotal aspect of the nation’s agricultural output, demonstrating resilience despite numerous economic and geopolitical challenges. With robust export relations across the European Union, China, and the Middle East, Ukraine continues to hold a significant position in the global dairy market landscape.

Milk Production and Processing

In 2023, Ukraine produced approximately 8.1 million tons of milk. Of this, around 4.5 million tons underwent processing within the country, transforming into various dairy products such as cheese, milk powder, and whey. The cheese production reached roughly 200,000 tons, while milk powder and whey production were about 150,000 tons. These figures underscore the industry's operational resilience and stability.

Dairy Cattle and Goats

As of 2023, Ukraine comprised around 1.5 million dairy cattle, with the complete cattle number, including dairy and beef, tallying approximately 2.294 million by the close of 2024. The goat milk segment appears less developed, with limited data available on the goat population.

Key Enterprises in the Dairy Market

Major dairy plants operating in Ukraine include:

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

Notable dairy farms encompass:

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

Export and Import of Dairy Products

In 2023, Ukraine exported about 500,000 tons of dairy products, primarily targeting markets in the EU, China, and the Middle East, with cheese, milk powder, and whey being significant exports. Import volumes were around 80,000 tons, predominantly covering cheese and butter sourced from the EU and adjacent regions.

Significant Events in Ukraine's Dairy Industry

Several critical developments have influenced the Ukrainian dairy market landscape in recent years:

• By June 2024, raw milk prices escalated to 35.51 euro cents per kg, propelled by rising procurement costs.
• A surge in demand for Ukrainian dairy products has been noted from markets like the EU and China in 2023 and 2024.
• Geopolitical tensions in 2023 have impacted supply chains, boosting exports of butter, cheese, and buttermilk.
• Tetra Laval contributed EUR 10 million worth of power generators as humanitarian aid.
• Minister of Agriculture, Vitaliy Koval, has pushed for increased investment in high-value dairy processing to boost exports.
• Discussions on mending mandatory agricultural exporter registration and instituting minimum export price systems are ongoing.
• A 40.3% rise in cheese exports during the first ten months of 2024 compared to 2023.
• Collaborative efforts with Moldova have influenced Eurointegration attempts in livestock and agricultural exchanges.
• Infrastructure issues such as harm inflicted by Russian drone attacks on a farm in Chernihiv’s Nizhyn district have posed challenges.
• Emphasis on potential dairy export growth to Lebanon by the Minister of Agrarian Policy and Food.
• 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 forged between Washington and Kyiv to ensure Black Sea shipping corridors, with a 10% import tariff from Washington.
• Dairy product price stabilization achieved through supermarket promotions and reduced raw milk costs.

Discussions on palm oil utilization in food products remain active, albeit no prohibition has been enforced yet. Last year, the European Dairy Association (EDA) celebrated Europe Day on 9 May 2024 alongside the Ukrainian lactosphère in Kyiv, where a Memorandum of Understanding was formalized.

Almost two years after the European Union sanctioned market access to Ukrainian goods, Brussels is gearing up to reimpose tariffs on a spectrum of agricultural imports.

Modified: 2025/05/16

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