Milk powder market Ukraine

Earlier Report Observations

Ukrainian milk powder production began the period at 105.9 thousand tonnes in 2018, gradually declining to 91.7 thousand tonnes by 2020. This reduction was driven by a significant rise in production costs, as prices for feed, fertilizers, fuel, and electricity increased, which squeezed farm margins. During these years, market studies also noted growing competition and the entry of new players, which influenced the market environment.

A partial recovery occurred in 2021, with output rising to 98.9 thousand tonnes, supported by innovation within the dairy sector that helped counter the ongoing reduction in cattle numbers. The market was sharply disrupted in 2022, as the war severely impacted domestic demand, pricing, and logistics, causing production to plummet to 59.6 thousand tonnes and market volume to contract to 36.2 thousand tonnes. That year also saw the implementation of new legislation on product safety, quality, and labeling. Production continued to decline modestly in 2023, reaching 57.5 thousand tonnes, while factors pointed to the emergence of new product segments aligned with changing consumer preferences and persistent pressure from high global feed and energy costs.

For 2024, industry factors highlight continued challenges from elevated production costs—with feed prices reportedly up 39%—and pressure from a global milk surplus due to increased output in the US and EU. These are accompanied by reported improvements in farm productivity and further updates to regulations governing safety, quality, and packaging.

Production milk powder Ukraine

In kind, 2017-2020, K t

Ukraine was among the world's leading producers of milk powder from 2017 to 2020, ranking 19th globally by production volume during this period.

Top producers of milk powder, 2017-2020

World map of production of milk powder, 2017-2020

Milk powder production in Ukraine declined for the third consecutive year. In 2020, Ukraine produced 91.7 K t of milk powder, which was down by 12.4% compared to the previous year. Between 2017 and 2020, production decreased by 36.6%, equating to an annualized decline rate of 14.1%.

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

Exports milk powder to Ukraine

Exports in kind, t

Ukraine exported 19 950 t of milk powder in 2020, representing a fall of 29.6% compared to the previous year. Between 2017 and 2020, exports decreased by 38.8%, with an annualized rate of decline of 15.1%. The largest increase was recorded in 2019 at 3.0%.

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

From 2017 to 2020, the partner structure for Ukraine's milk powder exports in kind was balanced rather than concentrated. Bangladesh accounted for 15.1% of exports in kind, Kazakhstan for 11.5%, and China for 10.7%, jointly representing 37.3% of total flows. Many other countries accounted for the remaining 62.7%.

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

In 2020, Ukraine's milk powder export value amounted to 45 389 K $ US, which was 31.9% lower year-over-year. Over the period from 2017 to 2020, exports decreased by 29.5%, with a compound annual growth rate of -11.0%. The maximum value was recorded in 2019 at 66 607 K $ US, with the largest increase that year at 33.8%.

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

During 2017 to 2020, Ukraine's milk powder exports in value terms were spread relatively evenly. Bangladesh accounted for 12.6% of exports in value terms, China for 11.3%, and Kazakhstan for 10.9%, jointly accounting for only 34.8% of total 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 powder in Ukraine

Imports in kind, t

The market showed signs of volatility over the observed period. Import volumes hit a low in 2017 and peaked in 2020, with a top-to-bottom ratio of 6.6 times. In 2020, milk powder deliveries to Ukraine totalled 3 438 t, representing a 193.2% rise versus the previous year. The largest decline was recorded in 2019 at 6.9%.

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

From 2017 to 2020, Belarus, Germany, and Switzerland were the main sources for Ukraine's milk powder imports in kind. Belarus accounted for 34.3% of imports in kind, Germany for 33.3%, and Switzerland for 16.6%, together accounting for 84.2% of total flows.

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

There were noticeable fluctuations in market performance during the period. A 5.3-fold variation was registered between the minimum in 2017 and the maximum in 2020. Ukraine imported a total of 8 622 K $ US of milk powder in 2020, which was 170.8% higher compared to 2019. The largest decline was recorded in 2019 at 13.4%.

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

From 2017 to 2020, Germany, Belarus, and Switzerland formed the main group of destinations for Ukraine's milk powder imports in value terms. Germany accounted for 37.9% of imports in value terms, Belarus for 27.1%, and Switzerland for 17.0%, with a combined share of 81.9% of total flows.

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

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