In 2024, power outages due to shelling by Russian forces, weather anomalies, logistical problems, and the unfavourable situation in foreign markets created many difficulties for both milk producers and processors. – INFAGRO

Perhaps the biggest problem of the year for the dairy industry was the very significant and rapid increase in the price of raw milk in the second half of the year. Because of this, most milk processors had to work in the fourth quarter, if not at a loss, then at best without profit.

Unfortunately, in 2024, it was still not possible to stop the process of falling milk production. According to preliminary forecasts, 7.2 million tons of milk were milked in all categories of farms, which is 3% less than last year and 17% less than in pre-war 2021.

However, there have also been positive developments in the industry in the past year. Milk producers’ earnings were incredibly high. Many enterprises managed to increase sales of dairy products. Some factories had quite decent earnings on the sale of butter at record-high prices. Technological modernization of a number of dairy factories was carried out.

Agricultural enterprises continue to increase milk production. It is expected that the farms of the category will milk about 3.1 million tons of milk (+5% by 2023). The growth is currently only due to increased livestock productivity, and the number of cows in the industrial sector is continuing to decline. It is unlikely that this livestock will exceed 375 thousand by the end of the year. At the same time, a number of leading farms are actively investing in the dairy sector, and there is hope that the pace of production growth will increase noticeably in 2025 because the profitability of milk production in 2024 was incredibly high.

Due to the increase in milk production by agricultural enterprises, the volume of its industrial processing continues to grow. According to rough estimates, in 2024, 3.3 million tons of milk could arrive at the factories (+4% compared to 2023). And in 2025, the figure may already reach the level of pre-war 2021, about 3.5 million tons.

Exporters of dairy products also demonstrated better-than-expected results. External sales remained at the level of over 0.6 million tons. So far, there has been no significant increase in imports of dairy products. Purchases amounted to about 0.3 million tons. That is, Ukraine remains a net exporter of dairy products.

INFAGRO