Raw milk prices are falling rapidly: Ukrainian farms are on the verge of survival
17 November 2025 14:03
EXCLUSIVE
Declining exports, weak domestic demand, lower global commodity prices and the effects of blackouts will all contribute to lower raw milk prices. “The situation in the dairy industry can be improved by strengthening the fight against counterfeiting and gray imports of dairy products to Ukraine,” Giorgi Kukhaleishvili, an analyst at the Association of Milk Producers, tells [Komersant].
As of November 16, the average purchase price of extra-grade milk (a type of milk that meets EU requirements) amounted to 16.55 UAH/kg excluding VAT, which is 90 kopecks less than the previous month. The range of prices for this grade in farms varies from 16.10 to 17.20 UAH/kg excluding VAT. Compared to November 2024, the price of raw milk decreased by UAH 2.60 (17%).
This situation is of serious concern to farmers. After all, on March 1, 2026, the new Law of Ukraine No. 1206-XI “On Veterinary Medicine” comes into force, according to which the requirements for animal welfare are being tightened. Where to get money for reconstruction if the price of raw milk is approaching its cost? Will the funds invested in dairy farming over the past three years be returned? Is it worth further developing this area on your farms? This is what farm managers are increasingly thinking about.
The most vulnerable in this situation (long-term price decline, search for a reserve of survival exclusively at the expense of farms and, at the same time, the requirement for them to implement animal welfare requirements, train and certify personnel, etc. by 2028) are small medium-sized farms with up to 400 cows. They collectively keep about 40% of the total number of cows, but will be literally on the brink.
A dairy farm is the main employer in the village. If there are no farms, there will be no villages, especially those far from regional centers.
In order to mitigate the impact of negative factors on the dairy industry, specialized government agencies and the Government must urgently take measures to strengthen control over the circulation of counterfeit products and close down the gray import of dairy products. The Verkhovna Rada should adopt the Law of Ukraine “On Bidding”, which has been lying in the Parliament for several years and has not been adopted due to the retail lobby. Failure to adopt this law negatively affects the work of the entire food industry in Ukraine, and in the future it may undermine the food security of our country.
