Growth in milk production in Ukraine: why it matters

In January of this year, raw milk production in Ukraine increased significantly by 6.6% compared to the same period last year. This indicates a stable positive trend in milk production, despite the fluctuations typical of January months in the past.

According to Infagro, the number of cows in Ukraine as of February 1 decreased by 6.7% year-on-year to 1.26 million heads. This also reflects a 3.9% decline in the number of cows in agricultural enterprises, to 0.38 million.

The increase in milk production while the number of livestock decreased indicates an increase in productivity, which is the result of improved housing conditions and the availability of animal feed.

It seems that in January, milk production in all categories of farms amounted to 456 thousand tons, which is 0.3% less than in January of the previous year.

It is predicted that in March there will be a seasonal increase in the volume of milk for processing, however, due to the steady decline in production by small farms, no significant changes in the market are expected. Trade restrictions, fluctuations in butter prices in the EU, and the dynamics of the hryvnia exchange rate will also keep milk prices high.

Since the beginning of 2024, the Ukrainian dairy market has seen a significant increase in sales, which has led to higher prices for raw milk. Milk prices increased by a quarter, while cheese prices increased by 10% on average. The profitability of cheese production in Ukraine has become very low due to rising feed and raw material costs.

It is worth noting that in January 2024, cheese imports increased by 42% compared to the same period in 2022, as producers are looking for cheaper alternatives due to high prices on the domestic market.