Expert Opinion
Georghii Kukhaleishvili
analyst
Association of Milk Producers

Global Dairy Market Seeks Balance

Global economic challenges, trade disputes, and production hurdles may compel dairy market operators to gradually re-evaluate their activities in the second half of 2025. Dairy fat…

Georghii Kukhaleishvili
analyst
Association of Milk Producers

Global Dairy Market: Milk Production Declining

In April, milk production volumes decreased in the EU, the USA, and Oceania. The decline in milk yield was influenced by a reduction in cow…

Ukraine Declined Dairy Exports After Autonomous Trade Measures (ATMs) Cancellation

In June, Ukraine sharply cut dairy product exports to the EU following the European Commission's cancellation of autonomous trade measures, which caused uncertainty regarding tariffs and quotas, reports Georghii Kukhaleishvili, an analyst at the Association of Milk Producers of Ukraine.

According to preliminary data from the State Statistics Service of Ukraine (SSSU), in June 2025, 12.38 thousand tonnes of dairy products were exported, totaling $45.63 million. Compared to May, natural export volumes decreased by 17%, but increased by 12% compared to June 2024. Export revenue decreased by 10% relative to May, but grew by 81% relative to June 2024. From January to June 2025, Ukraine exported 70.75 thousand tonnes (+17%) of dairy products worth $224.95 million (+61%).

The main export categories in June were the following goods:

  • Casein – 24%;
  • Butter – 23%;
  • Ice cream – 18%;
  • Condensed milk and cream – 17%.

In June 2025, Ukraine increased natural export volumes of buttermilk to 506 tonnes (+1%), ice cream to 2.24 thousand tonnes (+0.2%), and milk and cream, uncondensed, to 1.51 thousand tonnes (+26%) compared to May. Volumes of condensed milk and cream decreased to 3.01 thousand tonnes (-40%), whey to 1.14 thousand tonnes (-33%), butter to 1.44 thousand tonnes (-50%), and cheese to 1.18 thousand tonnes (-8%) compared to May of the current year. Compared to June 2024, natural export volumes of uncondensed milk and cream (-9%), condensed milk and cream (-23%), and whey (-42%) decreased. Deliveries to foreign markets increased for buttermilk (+56%), butter (+144%), cheese (+50%), and ice cream (+21%) compared to the same period last year.

Compared to May 2025, monetary revenue increased for exported uncondensed milk and cream to $1.22 million (+22%), buttermilk to $814 thousand (+19%), and ice cream to $8.26 million (+2%). Revenue decreased for exported condensed milk and cream to $7.6 million (-41%), whey to $1.1 million (-30%), butter to $10.36 million (-49%), and cheese to $5.26 million (-13%). Compared to June 2024, monetary revenue increased for exported uncondensed milk and cream (+17%), buttermilk (+106%), butter (+182%), cheese (+49%), and ice cream (+36%), but decreased for condensed milk and cream (-17%) and whey (-19%).

Georghii Kukhaleishvili notes that in June, Ukraine sharply reduced dairy product exports to the EU amid uncertainty regarding customs procedures and quotas after the European Commission's cancellation of autonomous trade measures (ATMs) for milk and dairy products from Ukraine on June 5. Since 2022, ATMs allowed domestic processing enterprises to supply their products to the EU without quotas and duties. Until the end of June, Ukrainian companies refrained from deliveries to Europe and adopted a wait-and-see approach.

However, the EU and Ukraine have revised the trade agreement, agreeing on new quotas for Ukrainian dairy product exports, with a gradual transition to EU standards by 2028. The European Commission approved customs clearance procedures and increased quotas for Ukrainian suppliers for butter from 5 to 7 thousand tonnes, for skim milk powder from 5 to 15.4 thousand tonnes, and abolished quotas for whole milk powder, fermented and cultured dairy products, including yogurts and kefirs. In turn, this contributed to Ukraine's resumption of dairy product supplies to Europe.

In June 2025, Ukraine imported 4.46 thousand tonnes of dairy products, totaling $24.03 million. Compared to May 2025, natural import volumes decreased by 12%, and increased by 6.6% compared to June 2024. From January to June 2025, Ukraine imported 30.07 thousand tonnes (+10%) of dairy products worth $152.66 million (+16%). The largest share of total import volumes falls on cheese (64%).

The increased supply and consumption of imported cheeses in Ukraine complicate the sale of domestic cheesemakers' products in the domestic market and put pressure on raw milk prices. Stabilizing raw milk prices could involve limiting imports of Polish cheeses to Ukraine and increasing cashback by 30% for buyers of domestically produced cheeses. However, the implementation of these measures is unlikely due to the position of the Ministry of Economy and the unwillingness to worsen relations with Poland, which is considered a strategic partner of Ukraine in the defense sector.

The foreign trade balance in June was positive and amounted to $21.59 million.

Press Service of the Association of Milk Producers


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