Milk prices have risen sharply in Ukraine: what caused the rise in price
10 August 2025 14:11
In early August, Ukraine saw a significant increase in purchase prices for raw milk. This is due to the active demand from dairy processing companies seeking to increase exports of finished products to the European Union before the current quotas are exhausted.
This was reported by Giorgi Kukhaleishvili, an analyst at the Association of Milk Producers.
As of August 5, the average purchase price of extra-grade milk was 16.80 UAH/kg excluding VAT, which is 66 kopecks more than in the previous month. The price range on farms varies from 16.10 to 17.20 UAH/kg excluding VAT. The lowest price level increased by 60 kopecks, the highest – by 50 kopecks.
Premium milk has risen in price to an average price of 16.60 UAH/kg excluding VAT, which is 75 kopecks more than a month ago. Prices range from 15.80 to 16.90 UAH/kg excluding VAT, with the minimum price increasing by 50 kopecks and the maximum by 55 kopecks.
The average price of first-class milk is 16.20 UAH/kg excluding VAT, which is also 75 kopecks higher than in July. The minimum purchase price is 15.50 UAH/kg, and the maximum is 16.50 UAH/kg. The lower price limit increased by 50 kopecks, and the upper price limit increased by 90 kopecks.
In general, the weighted average price of the three main grades of milk reached 16.62 UAH/kg excluding VAT, which is 70 kopecks more than last month.
According to Giorgi Kukhaleishvili, the price increase is due to the fact that processors are trying to ship dairy products to the EU market as quickly as possible without paying duties, as in June 2025 the European Commission canceled autonomous trade measures (ATMs) for Ukraine and restored quotas and duties on Ukrainian dairy products. Although Ukraine and the EU have agreed on the terms of a new trade agreement with a gradual transition to European standards by 2028, the document has not yet been signed due to the position of some countries, including Hungary, Poland, Romania, Bulgaria, and Slovakia, which link this issue to quotas on Ukrainian grain.
As a result, producers are being offered higher purchase prices to encourage the supply of raw materials. The quotas for butter and milk powder are almost exhausted, which repeats the trend of August 2024, when prices also rose sharply.
Dairy exports account for about 20% of total processed milk, and once the quotas are exhausted, finished products can accumulate in warehouses. However, a sharp drop in raw milk purchase prices is unlikely in the near future, as processors’ stocks are currently depleted and they need time to restock.
If the new trade agreement with the EU is approved in September, dairy exports should resume. However, no significant jumps in milk prices are expected in September, as supplies to the EU will be made from warehouses.
According to processors, the average milk price in September will be around 16.70 UAH/kg, and in October it may rise to 17.10 UAH/kg.
