EU quotas drive 23% monthly drop in Ukrainian dairy export volumes
Ukraine’s dairy export volume fell 23% month on month in June 2026, while revenue declined 31%, according to the Association of Milk Producers. EU tariff-rate quotas, weaker global prices and licensing requirements constrained sales as dairy imports into Ukraine increased sharply.
Export revenue falls faster than volume
Ukraine exported 23% less dairy produce in June 2026 than in May, while revenue fell 31%, Delo.ua reported, citing the Association of Milk Producers. Compared with June 2025, export volume was down 7% and earnings declined 23%. The association linked the contraction to the European Union’s reinstated tariff-rate quotas, lower world prices and a complicated licensing process.
During January-June 2026, Ukrainian dairy exports totaled 63.78 thousand tonnes worth $180.87 million. Volume was 10% below the corresponding 2025 level, while revenue was 20% lower. The gap between the declines in tonnage and value indicates that weaker prices compounded the effect of reduced market access.
Butter and cheese shipments retreat
Performance differed substantially by product in June. Exports of unconcentrated milk and cream increased to 1.26 thousand tonnes, fermented dairy products reached 656 tonnes and ice cream shipments rose to 2.7 thousand tonnes. Cheese exports, however, declined to 1.08 thousand tonnes, while butter shipments fell to 649 tonnes.
Butter was the most heavily affected category: export revenue dropped 83% from May. The Association of Milk Producers said butter and milk powder form the core of Ukraine’s dairy exports, but unsold products are accumulating in warehouses because the market cannot absorb the available butter volumes.
Weak demand in Asia and Africa is contributing to the buildup, as dairy fats compete with vegetable alternatives in those markets. Access to the EU is also constrained by a licensing mechanism that requires exporters to provide a financial deposit. These pressures limit processors’ ability to redirect surplus production when domestic and established overseas channels are unable to take it.
Ice cream offers a contrasting longer-term trend. Ukrainian ice cream exports to the EU have increased almost 100-fold in physical terms compared with 2016, following the introduction of the free trade area. The expansion shows that some value-added categories can build durable positions in the European market even as quotas restrict other dairy products.
European cheese gains ground in Ukraine
Imports moved in the opposite direction. Ukraine imported 8.68 thousand tonnes of dairy products in June, up 72% from May 2026 and 95% from June 2025. First-half imports totaled 39.17 thousand tonnes valued at $182.78 million—slightly more in value than the country earned from dairy exports during the same period.
Cheese accounted for 60% of import volume, with Poland the leading supplier. Germany, the Netherlands, Latvia and the Czech Republic also delivered significant quantities. European producers gained a price advantage after raw-material costs in the EU decreased at the beginning of summer, leaving Ukrainian semi-hard cheeses less competitive in their home market.
Pressure on the butter segment persisted into July: supply continued to exceed demand, options for selling surpluses remained limited and prices stayed low. For Ukrainian processors, the combination of restricted EU access, subdued demand in Asia and Africa, and stronger competition from imported cheese creates pressure on inventories and cash flow even where physical production remains available.
