Ukraine's Dairy Industry Faces Potential Losses of UAH 1 Billion in 2024

According to the Union of Dairy Enterprises of Ukraine (UDEU), the country's dairy processors may face losses amounting to approximately UAH 1 billion in 2024. This forecast was shared via a Facebook post, as reported by Ukrinform.

The key factors behind these anticipated losses include a sharp increase in the cost of raw milk, which persisted for several months, alongside reduced demand due to declining consumer purchasing power. Additionally, the unfavorable prices for major export products, like butter and milk powder, have rendered exports untenable.

UDEU experts emphasize the necessity for consultation with milk producers to develop a new model of relations. They suggest that this model should reflect the practices commonly adopted in EU nations, where long-term contracts form the cornerstone of producer-processor relationships.

It is anticipated that such agreements will foster predictability and support sustainable growth within Ukraine’s domestic dairy sector.

The average price for raw milk in Ukraine during 2024 was USD 42.45 per 100 kg—an increase of 20% compared to 2023. However, a decline in purchase prices for milk in January 2025 was noted due to an excess supply of raw milk, decreased demand from processing enterprises, and lower consumption of fermented milk products.