Milk Production in Ukraine May Drop by 20% Due to Farm Losses

The key factor in the crisis has been the sharp rise in electricity costs, driven by dairy farms switching to diesel generators.

"The cost of producing 1 kWh of electricity using diesel generators increases by 2–2.5 times. The cost price of milk is about 16 UAH per liter, while the purchase price is at the level of 13.5–14 UAH per liter," Zhupynas explained.

Thus, producers lose 2–2.5 UAH on each liter of milk sold.

The additional energy burden has become a critical factor for the dairy farming sector, as farms are forced to continue using autonomous energy sources.

"The price of milk will remain below the cost price for a long period. We understand that in the near future we will not abandon diesel generators. Therefore, by the fall, we may see a reduction in milk production by up to 20%," the expert stated.