Ukraine’s Industrial Dairy Farms Expand Amid War and Rising Automation

Ukraine’s dairy industry is shifting towards larger herds, specialised equipment and digitally managed operations. Farms with at least 2,000 cows are among the sector’s fastest-growing businesses, according to a report by LIGA.net. Major agricultural groups are spending millions of dollars on new complexes and extensions, while smaller farms face pressure on productivity, milk quality and costs.

Agroprodservice has opened a dairy complex planned for 2,200 cows. Self-propelled machines distribute and push feed, and automated systems direct cattle to feeding and milking areas. Mukko is developing a five-unit complex; three units were operating with roughly 1,200 cows, and the company plans to raise the herd to 2,000 by the end of 2026.

MHP, Eridon, TAS Agro, Ukraine 2001 and Hadz Agro have also announced expansion plans. Ukrprominvest-Agro operated the country’s biggest dairy farm, with about 7,800 cows in 2024. Mukko’s co-owner said the company’s combination of herd management and modern equipment supported reported daily yields of about 35 litres per cow.

Automation is being used for feeding, milking and animal monitoring. CattleEye, a system supplied by GEA, applies artificial intelligence to assess cows’ physical condition and can identify possible health problems several days before conventional observation, according to the report. The systems still require reliable electricity, trained workers, suitable maintenance, balanced nutrition, comfortable housing and preventive veterinary care.

Raw-milk quality has become another focus of investment. The proportion of extra-grade milk in Ukraine rose from 26% in 2020 to 62% in 2025, as producers worked towards European standards with laboratory testing and technical assistance, including through the Swiss-Ukrainian Quality FOOD Trade Program. Controlled milking areas, sanitation, rapid cooling and organised collection can help industrial farms meet processors’ requirements for consistent supplies.

Building a dairy complex costs about $7,000-$12,000 per cow stall, depending on its design and infrastructure. Manure treatment and biogas equipment add to the capital requirement. Farms also deal with feed prices, labour shortages, animal-health risks, market volatility and wartime disruptions. Operators with fewer than 500-600 cows may face increased competition from larger businesses, while smaller producers can pursue speciality products, artisan cheese, direct sales, farm tourism and educational activities.