The growth in raw milk prices in Ukraine slowed down in early September, due to the suspension of dairy product exports to the EU and a lack of demand from milk processing plants, reports Georghii Kukhaleishvili, an analyst at the Association of Milk Producers.
The average purchase price for extra grade milk as of September 9 was UAH 17.45/kg (excluding VAT), which is 65 kopiykas more than the previous month. The price range for this grade on farms varies from UAH 17.00 to UAH 18.20/kg (excluding VAT).
Top grade costs an average of UAH 17.15/kg (excluding VAT), which is 55 kopiykas more than a month ago. Prices for top grade milk range from UAH 16.80 to UAH 17.60/kg (excluding VAT).
The average price for first grade milk was UAH 16.80/kg (excluding VAT), which is 60 kopiykas more than the previous month. The minimum price on farms was UAH 16.50/kg, and the maximum price was UAH 17.20/kg.
Accordingly, the weighted average price for the three grades was UAH 17.30/kg (excluding VAT), which is 70 kopiykas more than the previous month.
Georghii Kukhaleishvili notes that unlike last year, when there was active demand for raw milk and purchase prices were rising, in early September 2025, high demand from milk processing plants was not observed, and raw milk prices did not increase significantly over the past month. Milk processors are producing for their warehouses, and the current supply fully covers the demand for dairy products in Ukraine. In September, Ukraine barely exported any dairy products to the EU due to the reinstatement of duties, the exhaustion of quotas after the European Commission canceled the Autonomous Trade Measures (ATMs), and falling global prices for butter, milk powder, and other dairy products.
The halt in raw milk price growth in early September is a global trend. High global prices for dairy products, especially butter, had been pushing up raw milk prices since the second half of 2024. The sharp drop in prices in early September this year may force milk processors in exporting countries to lower their raw milk purchase prices. Under these conditions, Ukrainian products are not attractive to EU traders. Furthermore, according to new trade agreements between the US and the EU, Europeans are to import up to 20,000 tonnes of American dairy products duty-free each year, creating unwelcome competition for Ukrainian companies. Modern American milk processing plants are more competitive, even despite expensive logistics, than domestic Ukrainian plants with outdated technical equipment.
A recovery in demand and raw milk price growth in Ukraine is likely in October if the European Commission approves a new trade agreement, dairy product exports to European countries resume, and domestic market demand increases.
Press service of the Association of Milk Producers
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