Main points
- Dairy processing plants in Ukraine are lowering purchase prices for milk and reducing its volumes, which threatens milk production.
- The problems arose due to domestic and global factors, including power outages, difficulties with product sales, and imported goods.
Crisis is growing in Ukraine's dairy industry / Depositphotos
Dairy plants in Ukraine are reducing purchases of raw milk and lowering prices for raw materials. This threatens mass farm closures as producers will no longer be able to maintain their herds of cows.
Why are milk prices falling?
This was stated by Hanna Lavreniuk, Director General of the Milk Producers Association (AVM), reports 24 Channel with reference to Latifundist.com.
Another decrease in purchase prices for raw milk is expected in early February.
Indeed, since February 1, dairy farms have had their prices reduced by 0.5 – 1 hryvnia per kilogram, meaning the price range for extra-grade milk has dropped to 14.0 – 13.5 hryvnia per kilogram. In addition, some factories have reduced the volume of milk purchases,
– Lavreniuk noted.
The fall in milk prices is caused by both domestic problems and global trends. The following played a role:
- consequences of power outages;
- difficulties with the sale of finished products;
- the pressure of imported “milk” sold by retail chains.
At the same time, according to Lavreniuk, the trend towards cheaper raw milk and products made from it is global. The dairy industry is experiencing the biggest crisis in the last 30 years. It has affected the main producers:
- in Europe;
- in the USA;
- and in New Zealand.
Hanna Lavreniuk
Director General of the Milk Producers Association
Some farms tell us that they are waiting until March: if there are no positive signals from the market about recovery, they will make a decision not to sow corn for silage, feed livestock with leftover feed from 2025, and cease dairy farm operations.
Important! Demand for animal and dairy proteins is not expected to recover until September-October 2026, and some producers are not willing to wait that long.
How is milk production decreasing?
Due to the crisis , milk production in Ukraine decreased significantly in 2025 , both monthly and annually, according to the Milk Producers Association.
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In December 2025, farms of all categories produced 478 thousand tons of raw milk – 14% less than in December of the previous year.
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In households, milk yields in December decreased to 206 thousand tons – 24% less year-on-year.
In total, according to the results of 2025, milk production in Ukraine amounted to 6.86 million tons of milk. This is 374 thousand tons, or 5%, less than a year earlier.
Note! At the same time, the volume of raw milk production increased last year at agricultural enterprises in 14 regions of Ukraine. And the growth rates of milk yields were among the highest in Europe and the world, even despite military risks and power outages.
What are the prices for milk in Ukraine?
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As of January 20, the weighted average purchase price of raw milk of three grades dropped to 14.35 hryvnia per kilogram excluding VAT. This is 85 kopecks less than a month earlier, which indicates a general trend towards cheaper prices on the market.
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Extra grade milk was sold on average at 14.50 hryvnia per kilogram excluding VAT – 80 kopecks cheaper than before. Premium grade milk fell even more significantly – by 90 kopecks, to 14.30 hryvnia, while first grade milk now cost about 13.90 hryvnia per kilogram excluding VAT.
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As noted by Georgy Kuhiashvili, an analyst at the Milk Producers Association, in the second half of January, the price drop covered all types of milk, including products from private farms. In annual terms, the average cost decreased by about 20%, which complicates the situation for the industry, as current purchase prices do not compensate for the increase in farm maintenance costs.