Expert Opinion
Gеorgiі Kukhaіleshvili
analyst
Association of Milk Producers

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Gеorgiі Kukhaіleshvili
analyst
Association of Milk Producers

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Ukraine Increased Dairy Exports in March

Ukraine increased its dairy exports in March, which may be due to higher global demand as people prepared for Easter. However, the dairy industry faces uncertainty due to the foot-and-mouth disease outbreak in Hungary and Slovakia and the Trump administration's trade war, according to Georgii Kukhaleyishvili, an analyst at the Association of Milk Producers. of Ukraine.

According to preliminary data from the State Statistics Service of Ukraine (DSSS), in March 2025, 12.27 thousand tons of dairy products were exported for a sum of $37.89 million. In relation to February, the natural volumes of export increased by 20%, and compared to March 2024, they increased by 44%. Export revenue increased by 39% relative to February and by 110% relative to March 2024. In January-March 2025, Ukraine exported 31.14 thousand tons (+21%) of dairy products for a sum of $89.77 million (+62%).

The main export categories in February were the following goods: Butter – 26%; Milk and cream, condensed – 25%; Cheeses – 14%; Ice cream – 14%; Casein – 11%.

In March 2025, Ukraine most increased the natural volumes of export of ice cream to 1.52 thousand tons (+76%), whey to 1.82 thousand tons (+22%), butter to 1.41 thousand tons (+41%), milk and cream, condensed to 3.87 thousand tons (+20%), and cheeses to 1.15 thousand tons (+8%). At the same time, the volumes of supply of buttermilk decreased to 425 tons (-1%), non-condensed milk and cream to 1.42 thousand tons (-32%). In March, Ukraine exported 624 tons of casein, but in February this product was not supplied to foreign markets. Compared to March 2024, export growth was recorded for butter (+262%), condensed milk and cream (+113%), buttermilk (+46%), cheese (+33%), ice cream (+46%), but the supply of whey (-1%), non-condensed milk and cream (-38%) decreased.

Relative to the previous month, the monetary revenue for shipped condensed milk and cream increased to $9.55 million (+12%), buttermilk to $707 thousand (+23%), whey to $1.7 million (+24%), butter to $10.01 million (+39%), cheeses to $5.34 million (+8%), and ice cream to $5.43 million (+80%). Revenue from exported non-condensed milk and cream decreased to $3.98 million (-159%). According to the results of March, export revenue for casein amounted to $7.52 million. Compared to March 2024, the monetary revenue for exported condensed milk and cream (+91%), buttermilk (+83%), whey (+41%), butter (+299%), cheeses (+35%), and ice cream (+52%) increased, but it decreased for the supplied non-condensed milk and cream (-24%).

In January-March 2025, Ukraine increased the natural volumes of export of condensed milk and cream to 9.45 thousand tons (+60%), buttermilk to 1.27 thousand tons (+39%), butter to 3.16 thousand tons (+231%), cheeses to 3.18 thousand tons (+24%), ice cream to 2.88 thousand tons (+39%), and casein to 1.14 thousand tons (+16%) relative to the same period last year. Relative to the same period last year, the volumes of export of non-condensed milk and cream decreased to 5.25 thousand tons (-27%) and whey to 4.77 thousand tons (-6%).

The monetary revenue in January-March 2025 increased for exported condensed milk and cream to $24.03 million (+52%), buttermilk to $1.88 million (+56%), whey to $4.39 million (+28%), butter to $23.00 million (+275%), cheeses to $14.70 million (+31%), ice cream to $10.25 million (+46%), and casein to $7.52 million (+24%) relative to the same period last year. Relative to January-March 2024, the monetary revenue decreased for exported non-condensed milk and cream to $3.98 million (-14%).

Georgii Kukhaleyishvili notes that in March, raw milk in Ukraine cost 28% less than in Europe, which contributed to the growth of interest in domestic products in sales markets. Most likely, the increase in the volume of dairy exports in March is related to the preparation for Easter worldwide, the beginning of the asparagus and ice cream season, and a seasonal decrease in milk yields in Oceania. It is likely that the end of Ramadan in the countries of North Africa and the Middle East also influenced the increase in demand for dairy products.

In China and a number of countries, there is active demand for whey. The increase in butter prices based on the results of the March GDT trading sessions may be related to the beginning of the asparagus season in Europe. Butter is used as an ingredient in the preparation of asparagus. In March, raw milk in Ukraine cost 28% less than in Europe, which probably contributed to the growth of interest in domestic products in sales markets.

Ukraine increased the supply of ice cream, and the largest sales markets were Germany and Poland. According to Straits Research, Europe has become the dominant player in the global ice cream market. The region's market is expected to grow by approximately 5% annually. The perception of ice cream as a beneficial product is the main driver of the market. In countries such as Germany, France, and the USA, the popularity of craft ice cream made from organic ingredients, as well as functional ice cream enriched with vitamins, probiotics, and antioxidants, is growing.

The trade war of the administration of US President Donald Trump and the increase in tariffs on European dairy products create uncertainty for Ukrainian exporters. The United States has traditionally imported large volumes of cheeses from France, Italy, and Ireland. European dairy processing enterprises probably will not be able to quickly reorient the directions of export of their products, and the accumulation of unrealized exchange goods in warehouses may contribute to a decrease in price and interest in the products of Ukrainian companies. As a result of the trade war with Mexico, which was one of the key importers of dairy products from the United States, American exporters are reorienting to the markets of Asian and African countries, where producers from Europe, New Zealand, and South America are already actively working. This may probably contribute to increased competition in these sales markets.

The outbreak of foot-and-mouth disease in Hungary and Slovakia also creates risks for Ukrainian dairy exports. If the infection enters Ukraine, quarantine and a ban on the export of finished products will be introduced.

In March 2025, Ukraine imported 5.73 thousand tons of dairy products worth $30.62 thousand. Relative to February 2025, the natural volumes of import increased by 24%, and relative to March 2024, they increased by 28%. In January-March 2025, Ukraine imported 15.37 thousand tons (+12%) of dairy products worth $75.24 million (+12). Relative to January-March 2024, the natural volumes of import of casein (+850%), non-condensed milk and cream (+122%), condensed milk and cream (+68%) increased the most. The volumes of import of butter (-74%) and whey (-47%) decreased.

The foreign trade balance in March was positive and amounted to $7.27 million.

 

Press Service of the Association of Milk Producers


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