Milk Procurement Prices Decrease in Ukraine

Ukraine 27.01.2026

In the second half of January, Ukraine recorded a decrease in the procurement prices for raw milk of all grades. The market is pressured by an oversupply of dairy products, reduced exports, and increased production costs at dairy farms. An additional factor remains the energy crisis, complicating the work of both agricultural producers and processors, according to Georgiy Kukhiyashvili, an analyst at the Milk Producers Association.

Milk Procurement Prices Decrease in Ukraine

The average procurement price for extra-grade milk was 14.50 UAH/kg excluding VAT, which is 0.80 UAH lower than the level a month earlier. In some farms, prices ranged fr om 13.50 to 14.90 UAH/kg. Meanwhile, the minimum price decreased by 1.30 UAH, and the maximum by 1.10 UAH.

Premium-grade milk was purchased on average for 14.30 UAH/kg excluding VAT, which is 0.90 UAH less than the previous figure. The price range was 13.50–14.50 UAH/kg, with the lower lim it decreasing by 1.20 UAH and the upper by 1.30 UAH.

The average price for first-grade milk was 13.90 UAH/kg excluding VAT (a decrease of 0.90 UAH over the month). The minimum price dropped to 13.00 UAH/kg, and the maximum to 14.00 UAH/kg (in both cases a decrease of 1 UAH compared to the previous period).

Overall, the weighted average price of the three grades was 14.35 UAH/kg excluding VAT, which is 0.85 UAH lower than a month ago.

According to Georgiy Kukhiyashvili, the reduction affected all market segments, including milk from the population. Compared to January 2025, the average price, according to him, decreased by approximately 20%.

The situation in the domestic market is exacerbated by the global situation. In the second half of 2025, milk production increased in Europe, the USA, Oceania, and South America, leading to an oversupply and a decrease in prices for traded dairy commodities, including butter and milk powder. As a result, export opportunities narrowed, and procurement prices in Ukraine came under additional pressure.

Ukrainian processors, according to industry analysts, increased the production of butter, dry, and condensed milk, but the sale of these products remains challenging. The production of milk and butter is characterized by low profitability: current procurement prices do not compensate for the increase in production costs.

An additional threat to the industry is unstable electricity supply against the backdrop of energy infrastructure damage. Long outages lead to disruptions in milk shipment from farms and force processors to suspend raw material intake. The industry warns that in crisis scenarios, milk may not be accepted for 1–2 days, so farms need to consider increased operational risks.

Additional costs arise from switching to diesel generators and autonomous energy generation, as well as winter weather conditions: frosts reduce milk yield and complicate logistics.

Market participants believe that in the current conditions, producers should be more cautious with investment plans for 2026, as increasing production amid energy instability and weak demand can increase financial risks.

Among the possible support measures being discussed by industry players are reducing excise duties on diesel fuel for farmers, stimulating alternative energy projects, combating gray imports of dairy products, and prioritizing the procurement of Ukrainian products for state and humanitarian needs.

According to analysts, a gradual recovery in demand on global commodity markets is possible at the beginning of the second quarter, with more stable stabilization closer to the end of the third quarter. At the same time, a key condition for the industry's recovery remains providing farms and processing with stable energy resources.