Ukraine becomes net dairy importer as January-August imports rise 39%
Ukraine became a net importer of dairy products by value in January-August 2026 as imports rose 39% to 56,200 tonnes. Cheese accounted for 58% of imports, intensifying competition for domestic processors while export revenue fell 17%.
Import bill overtakes export revenue
Ukraine became a net importer of dairy products by value in January-August 2026, reversing its position as a net exporter a year earlier. According to the Association of Milk Producers, cited by Ukrinform and Mezha, the country imported 56,200 tonnes of dairy products during the eight-month period, up 39% year on year. Their value increased 23% to $253.13 million.
Exports remained larger in physical terms at 86,920 tonnes, but their value was lower at $248.79 million. Export volume declined 7% from a year earlier, while revenue fell 17%. The divergence indicates that Ukraine is exporting a substantial share of relatively low-margin products, including skimmed milk powder and whey, while paying more for higher-value imported categories. In August alone, the dairy trade balance was negative by $3.34 million.
Cheese drives competitive pressure
Cheese represented 58% of total dairy imports, making it the main source of pressure on Ukrainian processors. The industry association highlighted growing competition from Polish products and noted that Polish producers receive state support. Cheese is also among Ukraine’s highest-margin dairy export categories, but domestic suppliers have not substantially increased its share of outbound trade.
Ukraine imported 8,230 tonnes of dairy products in August. That was 6% less than in July but 59% more than in August 2025. During the same month, exporters shipped 10,860 tonnes worth $30.51 million. Volume declined 11% and revenue fell 18% from July; compared with August 2025, volume increased 7% but earnings decreased 2%. Cheese exports rose 8% month on month to 1,210 tonnes, generating $5.24 million, while butter shipments recorded the largest monthly decline, at 42%.
Market access becomes critical
Ukraine’s export mix in January-August was led by ice cream at 26%, concentrated milk and cream at 25%, cheese at 17%, butter at 11% and whey at 7%. Year-on-year growth in August included concentrated milk and cream, up 22% to 2,760 tonnes; whey, up 18% to 1,350 tonnes; and ice cream, up 37.3% to 2,170 tonnes. Ukrinform reported that lower raw-milk production in the European Union and higher exchange-traded commodity prices could support external demand for Ukrainian dairy products.
Maintaining access to the EU will depend on compliance with European animal-welfare requirements. Ukraine has committed to full implementation by January 1, 2028, including the provisions of Order No. 224, which took effect on January 1, 2026. Non-compliant farms or plants could face EU restrictions that would also complicate re-exports to third countries. Moldova and the South Caucasus remain important markets, although Moldova is aligning its rules with EU standards and maritime risks linked to Russia complicate Caucasus logistics. In Kazakhstan, a key destination for Ukrainian cheese, exporters face stronger competition from Russian and Belarusian products. Azerbaijan’s infrastructure has been proposed as an alternative route to Central Asia and the Middle East.
