Ukraine: Dairy and Products Annual

Fluid milk production in Ukraine continued to decline in 2020/21 due to a decrease in the dairy cow population. Although the number of efficient industrial farms is growing, the majority of milk is produced by less efficient households. Raw milk purchase prices grew significantly in 2020/21. This was partially due to high energy costs, which led to increased cost of milk production. In addition, processed product prices surged to all-time high. In 2021, Ukraine is expected to decrease production and export of energy-intensive butter and non-fat dried milk, redirecting available raw milk towards cheese and whole milk products. The spread of COVID-19 has had a limited negative impact. Higher disposable incomes led to continued growth in imports of premium dairy products, especially cheese.