Dairy Industry in Ukraine: Challenges and Opportunities
Insights of the Dairy industry 2024 performance was discussed in during conferences in November.
A Challenging Year with Signs of Resilience
In November 2024, Ukraine's two largest dairy associations – the Association of Milk Producers and the Association of Milk Processors – held their annual conferences to review the industry's 2024 performance and discuss the key challenges and opportunities for 2025.
Representatives from both associations highlighted the difficulties faced in 2024. The industry contended with power outages, Russian attacks on farms and processing facilities, inflation, and other hurdles. Despite these adversities, Ukrainian dairy farmers and processors showcased remarkable resilience, proving that development is possible even under immense pressure.
Key Dairy Industry Insights for 2024:
According to the State Statistics Service of Ukraine and Infagro analytics, the sector experienced both setbacks and promising trends:
- Decline in Livestock and Milk Production: Since 2019, the number of cows in Ukraine has decreased significantly, from 1.92 million to 1.25 million in 2024. Similarly, milk production dropped from 9.66 million tons to 7.6 million tons during the same period.
- Growth in Efficiency and Farm Size: While overall livestock numbers have declined, the share of milk produced by large farms increased to 27%. The average size of dairy farms grew from 232 cows in 2019 to 289 cows in 2023.
- Increased Processing Volumes: Despite the ongoing war, dairy farmers have managed to boost milk volumes supplied for processing, rising from 2.8 million tons in 2022 to 3.2 million tons in 2024. This demonstrates adaptability and sustained productivity across the sector.
Advancing EU Integration
EU integration was a major topic of discussion during the conferences. Ukraine is actively working to align its animal health and welfare regulations with EU standards, requiring close collaboration between the government, policymakers, and businesses. Panel discussions featured the Minister of Agriculture, dairy industry representatives, and members of the agrarian committee in Ukraine’s parliament.
Key Developments in EU Integration:
- Legislative Alignment: The Ukrainian government has prioritized the development and adoption of legislation to harmonize national standards with EU regulations.
- International Support: The Netherlands has played an important role in supporting Ukraine's dairy sector through various initiatives, including knowledge sharing, matchmaking for businesses, promoting Dutch expertise, and fostering cooperation with educational institutions.
- Strategic Partnerships: Ukrainian dairy associations recently signed a memorandum of understanding with the European Dairy Association, committing to mutual cooperation and support in modernizing the Ukrainian dairy sector during the EU integration process.
Looking Ahead
The Ukrainian dairy industry has proven its resilience and adaptability in the face of extraordinary challenges. With international support, especially from the Netherlands, and a strong commitment to EU integration, the sector is well-positioned for growth and modernization.
The Dutch-Ukrainian partnership in agriculture continues to flourish, with the Netherlands reaffirming its dedication to supporting Ukraine's dairy industry through collaborative initiatives and knowledge exchange programs. This ongoing cooperation provides a solid foundation for the dairy sector’s sustainable development in the years ahead.
