Ukraine’s dairy production is in decline due to a raw milk shortage, with dairy processors relying on one another to keep operations running. The long-term milk industry development strategy relied heavily on household farms, but their share of output has declined from 90% to 60% in the last two years. Ukrainian dairy companies are urging the government to create a dairy bailout package, but the country’s strained budget is unlikely to allocate funds to support dairy farmers until 2025.
The hostilities have had a significant impact on the milk supply, with many Ukrainians abandoning their cows in Russian-controlled territories, resulting in unaccounted-for or confiscated cattle sold for meat. The culling of animals injured during the war contributes to a decrease in livestock. Feeding conditions have deteriorated as fields and pastures become contaminated with mines and shells, rendering them unfit for use. The unresolved issue of updating dairy farm infrastructure exacerbates the challenges.
In 2023, Ukrainian milk production was 7.4 million tonnes, a 5% decrease from the previous year. In the industrial sector, output increased by 6% to 2.8 million tonnes, matching pre-war levels. The dairy industry may suffer even more as a result of Ukraine’s integration with the European Union, which requires dairy companies to stop sourcing milk from backyard farms.
