Ukrainian dairy farmers are facing severe financial pressure as milk production costs exceed purchase prices, while output could fall by up to 20% by autumn, ProAgro Group reports.
According to Association of Milk Producers of Ukraine Deputy CEO Olena Zhupinas, the dairy market is currently in a critical state.
“The situation is primarily linked to electricity shortages, forcing dairy farms to switch to diesel generators. The cost of producing one kilowatt-hour of electricity increases by 2–2.5 times. As a result, dairy farmers are under significant financial pressure. The cost of milk production is around UAH 16 per litre, while the purchase price is only UAH 13.5–14 per litre,” Zhupinas explained.
This means farms are effectively operating at a loss of UAH 2–2.5 per litre of milk.
Against the backdrop of the dairy crisis, where processor purchase prices have already fallen below production costs, the additional energy burden has become critical for Ukrainian dairy farms.
“Milk prices are likely to remain below cost for a prolonged period, and we understand that dairy farms will not be able to abandon diesel generators in the near future. Therefore, by autumn we may see up to a 20% reduction in milk production,” Zhupinas said.
As reported earlier, the Association of Milk Producers of Ukraine (AMP) has initiated discussions on introducing anti-crisis financial support for industrial dairy farms in 2026. In turn, the Ministry of Economy, Environment and Agriculture of Ukraine has officially appealed to the European Union regarding possible financing of such a program.
Source: Delo.ua
