In June 2025, farms of all categories produced 657,000 tons of raw milk, which is 28,000 tons (-4%) less than in May 2025, but 47,000 tons (-7%) less than in June 2024, according to the Association of Milk Producers (AMP) citing data from the Ministry of Economy.
The industry association noted that in January-June 2025, milk production in Ukraine amounted to 3.39 million tons, which is 179,000 tons (-5%) less than in the same period last year. In June 2025, the share of enterprises in raw milk production was 39%, and that of private households was 61%.
At the same time, enterprises produced 257,700 tons of raw milk in June 2025, which is 12,400 tons (-4.6%) less than in May 2025, but 5,000 tons (+2%) more than in June 2024. In January-June 2025, dairy farms produced 1.56 million tons of raw milk, which is 63 thousand tons more (+4%) than in the same period last year.
In June 2025, milk production in private households amounted to 400,000 tons, which is 16,000 tons (-14%) less than in May 2025 and 53,000 tons (-12%) less than in June 2024. In January-June 2025, the household sector produced 1.82 thousand tons of raw milk, which is 242 thousand tons less (-12%) than in the same period last year.
The AVM noted that milk production increased the most in the Lviv (+21%), Zakarpattia (+20%), Khmelnytskyi (+17%), Mykolaiv (+13%), and Ternopil (+10%) regions compared to the same period last year.
“The growth rate of raw milk production in the industrial sector of Ukraine since the beginning of 2025 has been one of the best in Europe and the world. (..) Dairy farms increased milk production despite Russian missile and bomb strikes, relocation, and rising production costs. However, despite the increase in production in the industrial sector, milk yields in private farms continue to decline on an annual basis. It is likely that if private farms do not consolidate by 2030, their milk will no longer be sent for processing and will be used for their own consumption,” said Georgiy Kukhaleishvili, an analyst at the association.
In January-June 2025, dairy farms increased raw milk production in 14 regions. The regions of Central and Northern Ukraine remain the leaders in terms of raw milk production. However, the largest growth in raw milk production is observed in the Lviv, Zakarpattia, and Khmelnytskyi regions, which is associated with the construction of new dairy farms in western Ukraine. They compensate for the reduction in milk yield in the eastern and southern regions of Ukraine due to ongoing military operations.
At the same time, raw milk production at dairy farms in Ukraine is held back by the unwillingness of milk processing companies to buy it at a fair price as farmers’ production costs go up, according to the industry association.
“Domestic milk processing enterprises with outdated technology are unable to compete on quality with enterprises in developed countries. Therefore, they are not ready to buy raw milk at adequate prices, as they sell their products at lower prices to remain competitive in export markets,” the AVM emphasized.
Uncertainty in the market also prevents dairy farms from significantly increasing milk production in the future. After the European Commission canceled autonomous trade measures (ATMs) in June, Ukraine and the EU revised their trade agreement, agreeing on new quotas for Ukrainian dairy exports, provided that Ukraine gradually transitions to EU standards by 2028. However, the new document has not yet been signed due to the position of Hungary, Poland, Romania, Bulgaria, and Slovakia on customs duties and quotas for Ukrainian grain, which are also stipulated in the agreement.
“There is a risk that exports of dairy products from Ukraine to the EU will be suspended next month if the new conditions do not come into force in the near future. In such a scenario, exports of exchange-traded goods to the EU will be suspended, demand for milk from processors may decline, and the emergence of surpluses will negatively affect prices,” the AVM concluded.
