Milk producers in Ukraine are under pressure from rising energy prices, low purchase prices, increasing production costs, and challenges related to the war and new EU requirements.
According to preliminary data from the State Statistics Service, in March 2026, households of all categories produced 496.2 thousand tons of raw milk, which is 59.7 thousand tons less (-10.7%) compared to March 2025. In January–March 2026, Ukraine produced 1.31 million tons of raw milk, which is 144.3 thousand tons less (-10%) compared to the first quarter of 2025 and 236.8 thousand tons less (-15%) compared to the fourth quarter of 2025. In March 2026, the share of industrial enterprises in raw milk production was 58%, while households accounted for 42%.
Industrial enterprises produced 285.8 thousand tons of raw milk in March 2026, which is 13.4 thousand tons more (+4.9%) compared to March 2025. The daily milk yield at enterprises in March 2026 was approximately 9.2 thousand tons, which is 300 kg more (+3%) compared to February 2026. In January–March 2026, dairy farms produced 805.3 thousand tons of raw milk, up 21.5 thousand tons (+3%) compared to the first quarter of 2025 and 4.1 thousand tons more (+1%) compared to the fourth quarter of 2025. In the fourth quarter of 2025, dairy farms produced 801.2 thousand tons of raw milk, which is 69.3 thousand tons more (+9%) compared to the fourth quarter of 2024.
In households, milk yields in March 2026 amounted to 210.4 thousand tons of raw milk, which is 73.1 thousand tons less (-25.8%) compared to March 2025. In January–March 2026, households produced 510 thousand tons of raw milk, which is 165.8 thousand tons less (-25%) compared to the first quarter of 2025 and 240.9 thousand tons less (-32%) compared to the fourth quarter of 2025.
Milk producers in Ukraine are under pressure from lower purchase prices and rising production costs. The surge in oil prices due to the military-political conflict in the Middle East has led to more expensive logistics. Diesel is a key fuel for agricultural machinery during field work. Natural gas prices have also risen; it is used for grain drying and fertilizer production. In the cost structure of fertilizers, the share of gas can reach 90%. Prices for nitrogen fertilizers have increased significantly, and urea has become nearly 50% more expensive year-on-year due to Iran's blockade of shipping through the Strait of Hormuz, as Persian Gulf countries supply 30% of the world's total volume of nitrogen fertilizers.
According to the Institute for Economic Research and Policy Consulting, business obstacles in Ukraine in March included labor shortages, danger, price increases, energy supply problems, and limited access to credit. In particular, farmers in the Kharkiv region—which was among the top 3 in raw milk production in Ukraine before the full-scale invasion—are working under extremely difficult conditions. Local farmers are forced to abandon sowing or evacuate their farms due to the proximity of the front line, constant shelling, infrastructure destruction, loss of livestock, damage to equipment, and mined fields. In the Kharkiv region, russian occupiers attacked hundreds of agricultural enterprises, destroyed thousands of animals, and a significant amount of machinery. Livestock production has decreased significantly. Farmers in the Kharkiv region suffer multi-million losses, operate on generators, and face falling milk purchase prices, a lack of state support, and loan refusals.
Considering the Ukrainian Government's current Euro-integration course, another challenge for the Ukrainian dairy sector is changes in the EU Common Agricultural Policy (CAP). In the new 2028-2034 budget, Europeans propose changing the payment approach. The EU aims to move away from payments per hectare or per cow, instead paying for specific KPIs achieved by farmers in soil protection, biodiversity, and other environmental requirements. The new CAP architecture requires significant expenditures from Ukrainian milk producers for modernization to comply with EU environmental and phytosanitary requirements.
Under martial law, a prolonged dairy market crisis, and raw milk prices falling below production costs, farmers urgently need state support and subsidies to implement changes related to Euro-integration. Already, 10–15% of small and medium-sized dairy farms are at risk of closure.
In February 2026, raw milk production increased at agricultural enterprises in 12 regions, namely: Rivne (+30%), Lviv (+16%), Ivano-Frankivsk (+15%), Ternopil (+13%), Zhytomyr (+11%), Chernihiv (+8%), Vinnytsia (+6%), Mykolaiv (+5%), Volyn (+3%), Cherkasy (+3%), Khmelnytskyi (+2%), and Kyiv (+0.3%).
In March 2026, approximately 55% of raw milk was produced by agricultural enterprises in the following regions:
- Poltava region – 117.20 thousand tons;
- Cherkasy region – 98.60 thousand tons;
- Chernihiv region – 76.50 thousand tons;
- Khmelnytskyi region – 75.80 thousand tons;
- Vinnytsia region – 74.00 thousand tons.
Press service of the Association of Milk Producers
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