Prices for dairy products have risen much more slowly than those for other foods since the beginning of the year
8 May 15:03
Consumer prices for dairy products in Ukraine showed significantly slower growth in the first quarter of 2026 compared to other food categories, according to the Ukrainian Dairy Industry Association (UDIA), as reported by "Komersant Ukrainian".
The industry association noted that, on an annual basis, milk prices rose by 7.3%, sour cream by 5.7%, and soft cheeses by 5.3%, while the price of butter increased by only 1.9%. At the same time, the cost of meat, eggs, and bread increased by 15% to over 20% during the same period.
“Over the past six months, dairy prices have remained relatively stable. They rose slightly or even fell slightly, as in the case of butter, which became 1.4% cheaper. In contrast, eggs, vegetable oil, and bread saw significant price increases, while only pork and chicken became cheaper. The situation is similar with producer prices. The dairy industry, therefore, remains one of the main factors holding back food inflation,” the report states.
According to the association’s data, the annual change in producers’ selling prices for dairy products ranged from -3.2% for butter to 5% for sour cream.
By comparison, producer prices for beef, poultry, pasta, and bread rose significantly more—up to 34%.
Over the past six months, the SMPU reported, producer prices for dairy products have mostly declined, while most other food products continued to become more expensive.
As previously reported by the industry analytical agency “Infagro,” production volumes of butter and other dairy products in Ukraine will continue to grow in the near future. Excess supply will force producers to lower prices, leading to further market instability.
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The Situation on the Butter Market
The situation on the butter market remains unstable following the recent price increase, which has not established itself as a long-term trend.
Analysts noted that prices in the European market have dropped significantly in recent weeks. They attribute this trend to an oversupply driven by active production, as well as the influence of the skim milk powder market, where prices remain high. As a result, inventories are building up, putting additional downward pressure on prices.
“In the absence of positive signals from the European market, industry participants anticipate further price adjustments both for export markets and domestically. This scenario is supported by rising production and the accumulation of unsold product volumes,” the experts noted.
According to their estimates, butter production volumes in Ukraine are showing growth compared to last year. At the same time, export activity does not exhibit similar dynamics. The high cost of dry milk remains an additional incentive for producers, partially offsetting losses from the decline in butter prices.
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