Industrial milk production in Ukraine is declining due to market challenges
In April 2026, Ukrainian dairy farms reduced their production of raw milk compared to March. The sector continues to face pressure from high production costs, weak demand for dairy products, and an unfavorable market situation.
This was reported by the Association of Milk Producers, citing preliminary data from the State Statistics Service.
Overall, in April, farms of all categories produced 528 thousand tonnes of raw milk. This is 6.4% more than in March, but 12.6% less compared to April 2025.
In January–April 2026, Ukraine produced 1.84 million tonnes of raw milk, which is 11% lower compared to the same period last year.The industrial sector accounted for 53% of total milk production in April, while household farms provided 47%.Agricultural enterprises produced 277.9 thousand tonnes of raw milk in April. This is 2.8% less than in March, but 3% more than in April last year.
At the same time, in January–April, dairy farms increased production to 1.08 million tonnes, which is 3% higher than in the same period of 2025.Household farms produced 250.1 thousand tonnes of raw milk in April — 18.9% more than in March, driven by the seasonal rise in cows’ lactation in spring. However, in year-on-year terms, production decreased by 25.2%.
The Association of Milk Producers notes that the industrial sector is operating under rising production costs. The market is affected by higher prices for fertilizers, energy resources, and logistics, as well as lower global prices for butter and weak domestic demand.
According to industry estimates, raw milk purchase prices often remain below production costs, which limits further growth in milk output.
An additional challenge for the dairy sector is adaptation to new EU requirements under upcoming changes to the Common Agricultural Policy. Ukrainian producers will need investments in farm modernization, environmental measures, and compliance with animal welfare standards.
In January–April 2026, the strongest growth in milk production by agricultural enterprises was recorded in Rivne, Lviv, Ivano-Frankivsk, Zhytomyr, and Ternopil regions.
The largest volumes of industrial milk production remain concentrated in Poltava, Cherkasy, Chernihiv, Khmelnytskyi, and Vinnytsia regions.
