Ukraine and the EU to Revise Dairy Product Quotas

Ukraine is actively engaging with the European Union to negotiate higher tariff quotas specifically targeting the dairy sector. This development was highlighted by Taras Kachka, Deputy Minister of Economy and Trade Representative of Ukraine, through his blog on AgroTimes. Currently, three major dairy products are under quotas, namely condensed milk, powdered milk, and butter, while hard cheese remains exempt.

During the autonomous trade preferences, 15,000 tons of powdered milk were exported to the EU, a move stemming from the redirection of supplies originally intended for Asian markets due to logistical challenges. Taras Kachka indicates confidence that these volumes will persist in the EU market.

Kachka underscores a significant surplus in the tariff quota versus actual exports for condensed milk, noting pre-war exports exceeded 3,000 tons against the quota of 10,000 tons. Similarly, exports of butter to the EU within the 3,000-ton quota framework reached about 1,500 tons between 2022-2025, with notable increases in sales recorded especially in May.

The cooperative relationship between Ukrainian and EU producers, particularly Polish partners, is emphasized as a cornerstone for future trade liberalization efforts. Nonetheless, Kachka pinpoints the necessity for ongoing dialogue and overcoming political biases against Ukraine’s compliance with European standards.

The forthcoming weeks are expected to bring government-level announcements regarding new quota figures, aiming to establish clear and predictable trading volumes by August. This adjustment follows the resetting of quota counters on June 6, allowing a renewed phase of duty-free trade for upcoming months, a strategic move endorsed by Kachka to support free trade flows this year and into the next.