Fluid milk production is expected to decrease in 2016-17 due to lack of foreign markets for Ukrainian dairy products. Exports of almost all processed dairy products to Russia stopped in 2014 and are not expected to recommence. Ukraine will continue to export dried dairy products and butter to utilize excess milk supply. Industry’s efficiency will be improving due to increased investments in industrial milk production. Domestic demand shifted toward the cheapest products and is expected to stabilize in 2016.