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Dairy Product Exports Decline in August After EU Quotas Exhausted

In August, Ukraine's dairy product exports decreased due to a halt in EU shipments caused by exhausted quotas and lower butter prices, according to Georghii Kukhaleishvili, an analyst at the Association of Milk Producers.

According to preliminary data from the State Statistics Service of Ukraine (SSSU), 10.16 thousand tonnes of dairy products were exported in August 2025, valued at $31.27 million. Export volume was down 19% from July and 2% from August 2024. Export revenue decreased by 25% compared to July but rose by 26% compared to August 2024. From January to August 2025, Ukraine exported 93.5 thousand tonnes (+13%) of dairy products, totaling $298.06 million (+49%).

The top export categories in August were:

  • Butter — 27%
  • Ice cream — 19%
  • Condensed milk and cream — 18%
  • Cheeses — 18%

In August 2025, Ukraine increased its export volumes of uncondensed milk and cream to 1.86 thousand tonnes (+13%), buttermilk to 588 tonnes (+7%), and cheeses to 1.26 thousand tonnes (+8%) compared to July. Shipments of other products decreased, most notably ice cream to 1.58 thousand tonnes (-39.9%) and casein to 332 tonnes (-55.4%). Compared to August 2024, exports to foreign markets grew for buttermilk (+41%), butter (+14%), cheeses (+20%), and ice cream (+14%).

Compared to July 2025, revenue increased for uncondensed milk and cream to $1.53 million (+14%), buttermilk to $831 thousand (+8%), whey to $1.23 million (+11%), and cheeses to $5.64 million (+7%). Revenue for other items decreased, with ice cream revenue falling to $5.88 million (-41%) and casein to $2.02 million. Compared to August 2024, revenue from exported uncondensed milk and cream (+5%), buttermilk (+56%), whey (+11%), butter (+30%), cheeses (+29%), and ice cream (+29%) all increased, but revenue for condensed milk and cream decreased (-11%).

Georghii Kukhaleishvili notes that Ukraine's August decrease in dairy export volumes, particularly for condensed and dry milk, butter, whey, ice cream, and casein, was due to a halt in EU exports stemming from an unresolved trade issue. After the European Commission canceled the Autonomous Trade Measures (ATMs) in June 2025, quotas and duties for Ukrainian companies were reinstated. By late August, the quotas for dairy products were nearly exhausted. It will not be profitable for Ukrainian companies to continue supplying commodities to Europe and pay high duties, as a new trade agreement with expanded quotas has not yet been signed.

Barriers to increasing dairy product supplies to traditional markets in post-Soviet countries include war-related logistical obstacles and heightened competition from Russian and Belarusian companies that have increased their shipments to Central Asia and the South Caucasus. The weakening of commodity prices is also not in the interest of Ukrainian companies, as it is occurring due to lower butter prices amid increased milk yields in New Zealand, the US, and South America.

If the EU adopts a new trade agreement, Ukraine must gradually implement European production standards for animal welfare, pesticide use, GMOs, veterinary requirements, and environmental protection in exchange for broader access to the European market. Full compliance of Ukraine's agricultural sector with EU standards is expected by 2028.

In August 2025, Ukraine imported 5.19 thousand tonnes of dairy products, worth $26.98 million. Imports increased by 1% in volume compared to July 2025 and by 14.1% compared to August 2024. From January to August 2025, Ukraine imported 40.40 thousand tonnes (+10%) of dairy products, for a total of $206.10 million (+17%). The largest share of total imports is cheeses (80%).

The trade balance in August was positive, amounting to $4.29 million.

Press service of the Association of Milk Producers


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