In Ukraine, the 'Dairy Module' Covers Nearly 75% of the Cow Population

Since the full-scale launch of the program in 2021, the number of participants has increased by 3.2 times. Currently, the 'Dairy Module' covers nearly 75% of the cow population in Ukraine.

The program was launched in 2019 in a pilot format. Its goal is to harmonize Ukraine's raw milk control system with the European Union requirements, and ensure traceability of milk quality and safety at all stages of the supply chain.

In Ukraine, the reduction of cow populations in private farms contributes to the growing role of industrial milk and the development of the market for fresh factory-produced dairy products.

According to industry analysts, the decrease in home production volumes creates conditions for a gradual increase in the production of fresh dairy products by industrial enterprises. However, growth remains challenging: demand is largely concentrated in low-margin categories, and competition among producers remains high.

Traditionally, companies competed for shelf space through promotions and discounts. However, using such tools is becoming more difficult due to rising production costs. Despite relatively affordable raw materials, packaging, energy, logistics, and other expenses pressure production costs.

In these conditions, some producers are already considering raising base prices for certain product categories. Meanwhile, products with high fat content — including sour cream, cream, and fatty cheeses — may maintain more stable price dynamics. This is due to the need for processors to find channels for selling surplus milk fat, the production of which has recently increased.