Economy

Ukrainian dairy farms increase milk production by 4% in Feb

In February 2025, farms of all categories in Ukraine produced 439,000 tonnes of raw milk, a decrease of 14,000 tonnes (-3%) compared to January 2025 and 24,000 tonnes (-5%) less than in February 2024, according to the Association of Milk Producers (AMP).

In total, milk production in Ukraine for January-February 2025 reached 891,000 tonnes, which is 32,000 tonnes (-4%) less than in the same period last year.

In February 2025, dairy enterprises accounted for 55% of total raw milk production, while household farms contributed 45%. Enterprises produced 239,000 tonnes of raw milk during the month, marking a decline of 20,000 tonnes (-8%) compared to January 2025 but an increase of 4,000 tonnes (+2%) compared to February 2024.

Meanwhile, industrial dairy farms produced 499,000 tonnes of raw milk in January-February 2025, an increase of 21,000 tonnes (+4%) compared to the same period last year.

In the household sector, milk production in February 2025 amounted to 200,000 tonnes, up 6,000 tonnes (+3%) from January 2025 but down 28,000 tonnes (-12%) compared to February 2024. Over the first two months of 2025, small-scale farms produced 393,000 tonnes of raw milk, representing a decline of 53,000 tonnes (-12%) year-on-year.

According to AMP analyst Heorhiy Kukhaleishvili, industrial dairy farms may refrain from further increasing milk production in 2025 due to declining domestic demand for dairy products and falling procurement prices. Since dairy processing plants are unable to purchase milk at sustainable market prices, additional increases in milk yield could lead to a sharper drop in prices.

Another challenge facing Ukraine’s dairy industry is the potential threat of foot-and-mouth disease, with outbreaks recently reported in Hungary and Slovakia. A rise in the culling of infected livestock could result in lower milk production volumes.

"There are some prospects for a moderate recovery in demand for milk in Ukraine. Dairy processors are working to stimulate consumer demand through discounts and promotional offers in retail chains. With the arrival of spring, the ice cream season begins, and exports of canned dairy products from Ukraine are also on the rise. This is expected to drive an increase in raw milk deliveries for processing," the industry association concluded.

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