Milk and cream market Ukraine

Earlier Report Observations

The Ukrainian milk and cream market volume contracted steadily from 11.8 million tonnes in 2018 to 10.2 million tonnes in 2021. This decline was rooted in a long-term reduction of domestic milk production and dairy herd numbers, a trend intensified by the loss of traditional export markets. Regulatory measures, including a 2019 ban on non-dairy ingredients in traditional milk products, added constraints. The COVID-19 pandemic in 2020 further pressured the sector through disrupted global supply chains and weakened demand, contributing to a 4.2% drop in milk output.

The full-scale war in 2022 triggered a severe market shock, causing the volume to plummet by 13.8% to 8.8 million tonnes. One-third of milk processing plants could not resume operations, while blocked seaports, fodder shortages, and the reorientation of exports strained supply. Although temporary wartime labeling simplifications were introduced in March 2022, the ongoing conflict and the strict enforcement of new EU-aligned quality and safety standards from September 2022 continued to limit raw milk availability, driving the market down further to 8.4 million tonnes in 2023.

Production milk and cream Ukraine

In kind, 2017-2020, K t

Globally, Ukraine ranked as the 16th largest producer of milk and cream between 2017 and 2020.

Top producers of milk and cream, 2017-2020

World map of production of milk and cream, 2017-2020

Ukraine's milk and cream production declined for the third consecutive year. In 2020, the country produced 10 699 thousand tonnes, marking a moderate decrease of 4.5% compared to the previous year. Over the 2017-2020 period, production fell by 16.7%, with a compound annual growth rate of -5.9%.

Annual dynamics of production Ukraine in kind, 2017-2020, K t

In value, 2017-2020, M $ US

After two years of contraction, Ukraine's milk and cream production value increased in 2020. Output was valued at 6 890 million US dollars, representing a 1.3% rise from the prior year. However, over the 2017-2020 period, production value decreased by 22.5%, with a compound annual growth rate of -8.2%. The lowest value was recorded in 2019 at 6 803 million US dollars, which saw the largest decline of 18.4%.

Annual dynamics of production Ukraine in value, 2017-2020, M $ US

Exports milk and cream to Ukraine

Exports in kind, t

Following two years of growth, Ukraine's milk and cream exports declined in 2020. Exports amounted to 18 642 tonnes, which is 26.0% lower than the previous year. Over the 2017-2020 period, exports increased by 32.6%, with a compound annual growth rate of 9.9%. The peak was reached in 2019 at 25 206 tonnes, with the largest increase occurring in 2018 at 48.0%.

Annual dynamics of product's exports to Ukraine in kind, 2017-2020, t

Between 2017 and 2020, Moldova, Georgia, and Libya were the main destinations for Ukraine's milk and cream exports in volume terms. Moldova accounted for 41.9% of exports, Georgia for 15.3%, and Libya for 13.6%. Together, these three countries absorbed 70.8% of total exports.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports to Ukraine in kind, 2017-2020

Exports in value, K $ US

After two years of gains, Ukraine's milk and cream export value declined in 2020. Exports were recorded at 12 005 thousand US dollars, reflecting a significant drop of 21.6% year-over-year. Over the 2017-2020 period, export value increased by 23.3%, with a compound annual growth rate of 7.2%. The highest value was in 2019 at 15 311 thousand US dollars, with the largest increase in 2018 at 51.4%.

Annual dynamics of product's exports to Ukraine in value, 2017-2020, K $ US

From 2017 to 2020, the leading destinations for Ukraine's milk and cream exports in value terms were Moldova, Georgia, and Libya. Moldova accounted for 34.2% of export value, Georgia for 20.3%, and Libya for 11.6%. Collectively, these three markets represented 66.0% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports to Ukraine in value, 2017-2020

Imports milk and cream in Ukraine

Imports in kind, t

Ukraine's milk and cream import volume increased for the third consecutive year in 2020. Imports totalled 13 095 tonnes, reflecting a steep rise of 264.0% compared to the previous year. Between 2017 and 2020, imports surged by 1 465.5%, equating to an annualized rate of 150.2%.

Annual dynamics of product's imports in Ukraine in kind, 2017-2020, t

Over the 2017-2020 period, Poland was the primary source for Ukraine's milk and cream imports in volume terms, accounting for 70.1% of total flows. Other markets contributed smaller shares, forming a long tail of partners.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports in Ukraine in kind, 2017-2020

Imports in value, K $ US

Ukraine's milk and cream import value increased for the third consecutive year in 2020. Import volume amounted to 11 656 thousand US dollars, corresponding to a sharp rise of 226.2% year-over-year. Between 2017 and 2020, import value grew by 707.1%, with an annualized rate of 100.6%.

Annual dynamics of product's imports in Ukraine in value, 2017-2020, K $ US

Between 2017 and 2020, Poland, Germany, and Lithuania stood out as the main markets for Ukraine's milk and cream imports in value terms. Poland accounted for 52.1% of import value, Germany for 19.9%, and Lithuania for 9.5%. Together, these three countries represented 81.5% of total import flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports in Ukraine in value, 2017-2020