The Association of Milk Producers (AVM) has initiated the introduction of anti-crisis financial support for industrial dairy farms in Ukraine in 2026. Following the association’s appeal, the Ministry of Economy, Environment and Agriculture of Ukraine has officially approached the European Union regarding the possible financing of such a program, ProAgro Group reports.
According to AVM, the initiative was driven by a critical situation in the dairy sector. Over recent months, farm-gate prices for raw milk have declined sharply and fallen below economically viable levels, making production unprofitable for most industrial dairy farms.
The crisis in the sector is further exacerbated by:
- limited export competitiveness of dairy processors amid a global dairy market downturn;
- rising production costs due to the need to operate on diesel generators for 16 hours or more per day;
- difficult winter conditions for herd management;
- a severe labor shortage caused by mobilization, forced migration and security risks.
AVM emphasized that dairy farming is a long-payback sector that plays a systemic role in rural areas, remaining one of the largest employers, a source of tax revenues and a producer of socially important food products.
In its appeal to the ministry, the association proposed expanding a special subsidy program to compensate costs related to maintaining cows during the dry period. Similar support was financed by the EU in 2022–2025 under the emergency ARISE project, but was available only to micro and small farms.
AVM suggests extending the program to all industrial dairy farms in Ukraine. The estimated level of support is EUR 160 per cow per year. Given the presence of 386.3 thousand industrial dairy cows as of January 1, 2026, total funding needs could amount to around EUR 62 million.
“We have confirmation from the Ministry of Economy that it has approached the European Union regarding possible financing of the program. We strongly hope for a positive decision, and it is crucial to receive it before the start of the spring sowing campaign. This would signal dairy farms not to abandon fodder crop sowing or reduce cow numbers,” said Hanna Lavreniuk, CEO of AVM.
According to her, under wartime economic conditions it is critically important to preserve the production potential of the dairy sector and the workforce employed in the industry.
