Milk powder with fat content of ≤1.5% market Ukraine

Earlier Report Observations

The Ukrainian milk powder market saw significant regulatory updates between 2018 and 2019, including the introduction of new quality standard DSTU 3662:2018 for raw cow's milk, which eliminated previous grade distinctions for procurement starting January 2019, and the replacement of GOST 5867-90 with DSTU ISO 2446:2019 for fat testing methods. These changes required producers to adjust processes, coinciding with a dip in physical output. However, a noted shift in consumer preferences toward milk powder and reconstituted milk from 2020 onward helped sustain domestic consumption, supporting market volume and contributing to rising market value through 2021 as the industry adapted to the stricter quality framework.

The full-scale Russian invasion in 2022 severely disrupted dairy supply chains, leading to a sharp contraction in production and market size for milk powder. The war's impact was further exacerbated in 2023 by increasing production costs driven by environmental constraints and pressure from global dairy commodity prices, which continued to constrain market recovery. By 2024, factors indicated a potential turnaround, with Ukrainian milk yields recovering to pre-war levels and improved raw milk availability in key exporting regions, though the full effect on the domestic powder market remains to be seen.

Production milk powder with fat content of ≤1.5% Ukraine

In kind, 2017-2020, K t

From 2017 to 2020, Ukraine ranked as the 13th largest global producer of milk powder with a fat content of ≤1.5%.

Top producers of milk powder with fat content of ≤1.5%, 2017-2020

World map of production of milk powder with fat content of ≤1.5%, 2017-2020

Ukraine's production of milk powder with a fat content of ≤1.5% declined for the third year in a row. In 2020, output stood at 81.4 K t, marking a modest decrease of 6.4% compared to the previous year. Over the 2017-2020 period, production fell by 38.7%, with an average annual decline of 15.1%.

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

In value, 2017-2020, M $ US

In 2020, the value of milk powder production with a fat content of ≤1.5% in Ukraine was 178.9 M $ US, showing a slight drop of 1.9% from the year before. From 2017 to 2020, production value decreased by 27.4%, averaging a 10.1% annual decline. The lowest value was recorded in 2018 at 157.2 M $ US, which saw the largest decline of 36.2%. This was followed by a recovery in 2019, with the largest increase of 15.9%.

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

Exports milk powder with fat content of ≤1.5% to Ukraine

Exports in kind, t

Ukraine's exports of milk powder with a fat content of ≤1.5% fell for the third consecutive year. In 2020, the country exported 16 218 t, representing a decline of 17.4% compared to the previous year. Between 2017 and 2020, exports decreased by 43.5%, with an average annual rate of decline of 17.3%.

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

From 2017 to 2020, the largest buyers of milk powder with a fat content of ≤1.5% from Ukraine were Bangladesh (18.5% of exports in kind), Kazakhstan (13.7%), and Georgia (10.0%). However, even combined, these three countries accounted for just 42.2% of total exports in kind, indicating a broadly diversified partner base.

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 exports of milk powder with a fat content of ≤1.5% totaled 35 632 K $ US, a decrease of 13.4% from the previous year. Between 2017 and 2020, exports fell by 33.1%, with an average annual decline of 12.5%. The largest drop occurred in 2018 at 29.0%, followed by an increase of 8.8% in 2019.

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

From 2017 to 2020, Ukraine supplied milk powder with a fat content of ≤1.5% to a wide range of markets. The top three destinations—Bangladesh (16.8% of exports in value terms), Kazakhstan (13.9%), and Georgia (10.3%)—together accounted for only 40.9% of total exports in value terms, while many smaller markets made up the remaining 59.1%.

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 with fat content of ≤1.5% in Ukraine

Imports in kind, t

Ukraine's imports of milk powder with a fat content of ≤1.5% rose for the third year in a row. In 2020, imports reached 3 366 t, up by 221.7% compared to 2019. Over the 2017-2020 period, imports increased by 785.7%, with an average annual growth rate of 106.9%.

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

Throughout 2017-2020, the three largest sources for imports in kind were Belarus, Germany, and Switzerland, which together accounted for 87.7% 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

Ukraine's imports of milk powder with a fat content of ≤1.5% increased for the third consecutive year. In 2020, imports amounted to 8 316 K $ US, showing a steep advance of 208.9% year-on-year. Between 2017 and 2020, imports grew by 673.5%, with an average annual rate of increase of 97.8%.

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

From 2017 to 2020, the principal suppliers of milk powder with a fat content of ≤1.5% to Ukraine were Germany (35.7% of imports in value terms), Belarus (31.8%), and Switzerland (19.9%). Together, these three countries accounted for 87.4% of total imports in value terms.

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

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