Milk prices are falling: imports and low demand hit the Ukrainian market
29 November 16:07
Average purchase prices for milk in Ukraine continue to decline. Thus, as of November 25, extra quality milk cost 16.30 UAH/kg excluding VAT, which is 95 kopecks less than the previous month.
This is reported by the press service of the Association of Milk Producers, "Komersant Ukrainian" reports.
“Slow demand for finished products, low prices for commodities and the influx of imported cheeses to Ukraine contribute to the weakening of raw milk prices,” said Giorgi Kukhaleishvili, an analyst at the Association of Milk Producers.
As of November 25, the average purchase price of extra-quality milk was 16.30 UAH/kg excluding VAT, which is 95 kopecks less than the previous month. On farms, the price of this grade ranges from 16.00 to 16.80 UAH/kg.
Premium milk costs an average of 16.10 UAH/kg excluding VAT, which is 90 kopecks less than a month earlier. The range of prices on farms is from 16.00 to 16.30 UAH/kg.
The average price of first-class milk is 15.90 UAH/kg excluding VAT, down 75 kopecks from the previous month. On farms, the minimum price of this grade is 15.80 UAH/kg, and the maximum is 16.00 UAH/kg.
Accordingly, the weighted average price of the three grades was 16.25 UAH/kg excluding VAT, which is 92 kopecks less than the previous month.
Kukhaleishvili notes that in Ukraine, purchase prices for milk continue to decline due to low demand for raw materials and commodities. Exports of dairy products to the EU remain small due to weak prices on European markets. Dairy processing companies are forced to sell butter and milk powder even at a loss to pay their current bills.
The situation on the market this fall is significantly different from the bullish trend of the fall of 2024, when high export demand encouraged plants to buy more raw milk. As a result, the price of extra milk as of the end of November 2025 is 17.2% lower than in the same period last year.
Prices in Europe are additionally affected by duty-free supplies of cheap dairy products from the United States, including butter, under recent trade agreements. In the United States, prices for raw milk and finished products are currently lower than in Ukraine, which reduces the competitiveness of Ukrainian dairy products on the European market.
The domestic market for finished products is also under pressure. Consumption of fresh fermented dairy products is declining due to a reduction in the purchasing power of Ukrainians, and intensified Russian shelling is forcing some people to leave cities and the country. In addition, imports of cheese from Poland, Germany, and the Netherlands, supported by government subsidies, are dumping prices on the Ukrainian market and pushing domestic products off the shelves.
Due to the lack of active exports and import pressure, the raw milk market remains in a difficult situation. It is likely that prices for raw milk will decline again in early December. This is a serious challenge for farmers: in November, almost 40% of farms were operating at a loss. In such circumstances, all the achievements of the last three years in milk production may be lost, and Ukraine, instead of remaining an exporter, risks becoming an importer.
