The year 2025 became another challenging period for Ukraine’s dairy sector. The full-scale war continued to put pressure on the economy, while the milk market fluctuated between periods of relative stability and acute crises, ProAgro Group reports.
At the beginning of the year, amid record-high raw milk prices, processors managed to raise prices for finished dairy products and overcome the aftermath of the late-2024 raw milk crisis. In mid-2025, market balance was supported by high global prices for exchange-traded dairy products, primarily butter.
The most difficult situation emerged in the fourth quarter, when global commodity markets declined sharply, cheese imports surged, and processors were forced to cut raw milk purchase prices during the off-season. Widespread power outages further aggravated the situation.
Despite these challenges, the year ended on a relatively positive note. For the first time in Ukraine’s independence, agricultural enterprises increased the number of dairy cows by 3%, reaching 385,000 head. Due to higher productivity, milk production in this segment rose by approximately 7% to 3.2 million tonnes.
Higher production volumes stimulated processing as well. In 2025, dairy plants could receive about 3.6 million tonnes of raw milk — 9% more than a year earlier and even above the pre-war 2021 level. Dairy production grew faster than domestic consumption, encouraging export expansion.
According to preliminary estimates, dairy exports in milk equivalent increased by 17% in 2025 to 0.7 million tonnes, while imports remained significant at around 0.4 million tonnes.
Outlooks for 2026 remain cautiously pessimistic. The war continues, and global dairy prices may decline amid excess supply. However, in the long term, the sector still has potential: companies investing in herd preservation, sustainability and modernization may gain competitive advantages after 2026.
Earlier, we reported that Ukraine’s dairy industry is expected to end 2025 with an increase in processing volumes.
Source: INFAGRO
