Main points
- Milk prices in Ukraine are stable, but farmers are operating at a loss and production is declining.
- Large and highly productive farms ensure profitability, while in private farms the number of cows and production volumes are decreasing.
What is the situation in the dairy industry / Photo Pixabay
In the spring, the situation on the Ukrainian dairy market stabilized somewhat, but the industry's problems remain. Despite relatively stable prices, farmers continue to operate at a loss, and production is declining.
Price stability does not guarantee profits
The dairy market in Ukraine is showing some improvement in the spring, Infagro reports. However, the overall situation remains difficult for producers.
According to analysts, the current level of milk purchase prices is considered economically justified, given the increasing costs of logistics and energy resources. Prices are expected to remain relatively stable for at least the next two months.
At the same time, exporters' earning opportunities are much worse than last year. In particular, revenue from sales of products in the butter and skimmed milk powder segments is currently lower than a year ago.
Pay attention! Despite this, producers, especially small farms, continue to declare unprofitable business and criticize processors. The industry warns: if the current price situation persists, investment activity may decrease.
Production is changing: business growth, population decline
Experts note that under current conditions, profitability of dairy production is ensured mainly by large and highly productive farms. At the same time, the overall pace of development of the industry is slowing down, and livestock productivity is practically not increasing, which may be due to savings on feed.
As of March 1, the number of cows in the industrial sector increased by 5% to 395 thousand heads, while milk production in February increased by only 4.3% year-on-year to 250 thousand tons.
The situation is the opposite in households: the number of cows has decreased by 28% and production volumes by 25% over the year. As a result, the total supply of milk in the country is decreasing, even despite the increase in raw material supplies to processing plants.
Important! Against the backdrop of weak domestic demand , manufacturers are increasingly focusing on exports . At the same time, entering foreign markets, especially with value-added products, remains a complex and lengthy process.
Profits almost doubled: Ukraine's dairy industry is on the rise
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The net profit of Ukraine's dairy industry in 2025 almost doubled, from 1.35 billion hryvnia to 2.64 billion hryvnia.
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The industry's total revenue increased by 18%, to 124.4 billion hryvnias, with the largest results in Vinnytsia, Kyiv, Poltava, Cherkasy, and Kyiv regions.