Export of Dairy Products from Ukraine to the EU: New Regulations, Challenges, and Opportunities

A huge thank you to the project team, Maksym Fastieiev, and INFAGRO Ltd. for the excellent analysis of the dairy market!

At SIPPO Ukraine, we closely monitor export trends across various sectors, and the dairy sector is no exception.

On June 6, 2025, the EU revoked the duty-free regime for most Ukrainian dairy products and reinstated tariff quotas. This significantly complicates competition in a market where Ukraine previously held a strong logistical advantage.

However, this development has two sides:

• The commodity segment (butter, powdered milk, etc.), which grew thanks to the preferential regime, is likely to be affected the most. Its exports have always been dependent on volatile raw material prices in the EU.

• In contrast, value-added dairy products saw notable growth between 2021 and 2024:

  • Ice cream exports increased by 30%,

  • Condensed milk exports grew 15-fold,

  • Cottage cheese appeared in the export structure for the first time, having been completely absent in 2022.

Today, value-added products account for over 25% of Ukraine’s total dairy exports to the EU. This segment:

• Is less sensitive to price fluctuations,

• Includes products that either aren’t subject to tariff restrictions or benefit from large, underutilized quotas,

• Offers opportunities for private label partnerships with European retail chains and gradual development of Ukrainian brands.