The situation is exacerbated by the energy crisis: milk prices are falling rapidly in Ukraine
22 January 14:08
In the second half of January, prices for raw milk in Ukraine fell due to a surplus of dairy products and a decline in exports. The situation is significantly complicated by the energy crisis, which is disrupting the work of farms and milk processing plants.
This information was reported by the Association of Milk Producers, according to "Komersant Ukrainian".
Milk prices are falling
According to analysts, the average purchase price of extra-grade milk as of January 20 was 14.50 UAH/kg excluding VAT, which is 80 kopecks less than in the previous month.
The highest grade costsan averageof 14.30 UAH/kg excluding VAT, which is 90 kopecks less than in the previous month.
The average price for first grade milk was UAH 13.90/kg excluding VAT, down 90 kopecks from the previous month.
Accordingly, the weighted average price of the three grades was 14.35 UAH/kg excluding VAT, which is 85 kopecks less than in the previous month.
Analysts note that in the second half of January, there was another decline in prices for raw milk of all grades. Milk from the population is also becoming cheaper. Compared to January 2025, the average price of milk fell by 20%.
New solutions are needed to save the industry
Experts emphasize that milk and butter production remains low-profit. The situation poses a serious challenge for the dairy industry, as current purchase prices do not correspond to the increase in production costs on farms.
Another serious challenge for the dairy industry is the lack of electricity caused by systematic shelling of Ukraine’s energy infrastructure by the Russian army. Due to many hours of blackouts, there have been interruptions in the shipment of raw milk from farms to milk processing plants.
Factories report that they cannot accept milk and send it for processing when the power is off.
“If the energy supply situation does not improve in the near future, milk producers will have to develop anti-crisis measures in case processors are unable to accept milk for 1-2 days,” the UMA emphasizes.
Analysts believe that increasing raw milk production in the current energy crisis is not timely, and a significant recovery in demand for dairy products in the domestic market is unlikely in the short term.
“In Ukraine, the cost of raw milk production is rising due to additional expenses for diesel generators and independent power generation. Severe frosts have led to a decline in cow productivity, a drop in milk yields, and logistical collapses,” experts emphasize.
They add that in the context of the energy crisis, participants in the dairy industry need support from the state, namely:
- assistance in implementing alternative energy projects (solar power plants or biogas plants).
- abolition of excise duty on diesel fuel for generators,
- reduction of excise duty on diesel fuel for the needs of agricultural producers,
