Dairy farms in Western Ukraine are offsetting the decline in milk yields in the eastern and southern regions due to ongoing military actions, reports Georghii Kukhaleishvili, an analyst at the Association of Milk Producers.
According to preliminary data from the Ministry of Agrarian Policy, in June 2025, farms of all categories produced 657 thousand tonnes of raw milk, which is 28 thousand tonnes less (-4%) than in May 2025, and 47 thousand tonnes less (-7%) than in June 2024. From January to June 2025, milk yields in Ukraine amounted to 3.39 million tonnes, which is 179 thousand tonnes (-5%) less than in the same period last year. In June 2025, the share of enterprises in raw milk production was 39%, while household farms accounted for 61%.
Enterprises produced 257.7 thousand tonnes of raw milk in June 2025, which is 12.4 thousand tonnes less (-4.6%) compared to May 2025, but 5 thousand tonnes more (+2%) compared to June 2024. From January to June 2025, dairy farms produced 1.56 million tonnes of raw milk, an increase of 63 thousand tonnes (+4%) compared to the same period last year.
In household farms, milk yields in June 2025 amounted to 400 thousand tonnes of milk, which is 16 thousand tonnes less (-14%) than in May 2025 and 53 thousand tonnes less (-12%) than in June 2024. From January to June 2025, the household sector produced 1.82 million tonnes of raw milk, which is 242 thousand tonnes less (-12%) than in the same period last year.
It should be noted that agricultural enterprises in Lviv Oblast (+21%), Zakarpattia Oblast (+20%), Khmelnytskyi Oblast (+17%), Mykolaiv Oblast (+13%), and Ternopil Oblast (+10%) increased milk production the most compared to the same period last year.
Georghii Kukhaleishvili notes that the growth rates of raw milk production in Ukraine's industrial sector since the beginning of 2025 have been among the best in Europe and the world. Specifically, the EU's milk yields decreased by 0.7% in January-May, New Zealand increased raw milk production by 1.1%, and the US by only 0.5%. 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, the annual decline in the volume of milk yields continues in household farms. It is likely that if household farms do not consolidate by 2030, their milk will cease to be supplied for processing and will be used for their own consumption.
From January to June 2025, dairy farms increased raw milk production volumes in 14 oblasts. The central and northern oblasts of Ukraine remain leaders in raw milk production volumes. However, the largest growth in raw milk production is observed in Lviv, Zakarpattia, and Khmelnytskyi Oblasts, which is associated with the construction of new dairy farms in Western Ukraine. These areas are offsetting the decline in milk yields in the eastern and southern regions of Ukraine due to ongoing military actions.
Raw milk production volumes on dairy farms in Ukraine are constrained by the unwillingness of milk processing enterprises to purchase it at a fair purchase price amid rising production costs for farmers. Domestic milk processing enterprises with outdated technological bases are unable to compete in quality with enterprises from developed countries. Therefore, they are not ready to buy raw milk at adequate prices, as they sell their products at lower prices to withstand competition in export markets.
Market uncertainty also hinders dairy farms from significantly increasing milk yields in the future. After the European Commission canceled autonomous trade measures (ATMs) in June, Ukraine and the EU revised the trade agreement, agreeing on new quotas for Ukrainian dairy product exports, with a gradual transition to EU standards by 2028. Nevertheless, the new document has still not been signed due to the position of Hungary, Poland, Romania, Bulgaria, and Slovakia regarding tariffs and quotas for Ukrainian grain, which are also included in the agreement. There is a risk of suspending dairy product exports from Ukraine to the EU next month if the new terms do not come into effect soon. In such a scenario, the export of commodities to the EU would be suspended, demand for milk from processors could decrease, and the appearance of surpluses would negatively affect prices.
From January to June 2025, approximately 55% of raw milk was produced by agricultural enterprises in the following oblasts:
- Poltava Oblast – 239.5 thousand tonnes;
- Cherkasy Oblast – 193.5 thousand tonnes;
- Khmelnytskyi Oblast – 152.4 thousand tonnes;
- Vinnytsia Oblast – 141 thousand tonnes;
- Chernihiv Oblast – 140.9 thousand tonnes.
Regarding beef production, according to preliminary estimates from the Ministry of Agrarian Policy, in June 2025, cattle slaughter volumes amounted to 9.1 thousand tonnes, which is 5 thousand tonnes less (-34%) than in May 2025 and 600 tonnes less (-6%) than in June 2024. From January to June 2025, cattle slaughter volumes in Ukraine amounted to 83.7 thousand tonnes, which is 5 thousand tonnes less (-6%) than in the same period last year. In June 2025, enterprises produced 70% of beef from the total slaughter volume, and household farms produced 30%.
In June, cattle slaughter volumes at agricultural enterprises amounted to 6.4 thousand tonnes, which is 500 tonnes more (+8%) than in May 2025 and 1.5 thousand tonnes more (+31%) than in June 2024. From January to June 2025, cattle slaughter volumes at agricultural enterprises amounted to 38.6 thousand tonnes, which is 1 thousand tonnes more (+3%) than in the same period last year.
In household farms, cattle slaughter volumes in June amounted to 2.7 thousand tonnes, which is 5 thousand tonnes less (-65%) than in May of the current year and 2.1 thousand tonnes less (-44%) than in June 2024. From January to June 2025, cattle slaughter volumes in household farms amounted to 45.1 thousand tonnes, which is 6.4 thousand tonnes less (-12%) than in the same period last year.
Total slaughter volumes of agricultural animals, including not only cattle but also pigs, sheep, and poultry, in January-June 2025 amounted to 1.13 million tonnes, which is 5% less than in the same period last year. The most significant increases in slaughter volumes were seen at agricultural enterprises in Zakarpattia Oblast (+227%), Zaporizhzhia Oblast (+38%), Kharkiv Oblast (+32%), Mykolaiv Oblast (+27%), and Chernivtsi Oblast (+19%).
The largest share (74%) of animals sold for slaughter by agricultural enterprises occurred in the following oblasts:
- Vinnytsia Oblast – 299.4 thousand tonnes;
- Cherkasy Oblast – 204.9 thousand tonnes;
- Dnipropetrovsk Oblast – 175.8 thousand tonnes;
- Lviv Oblast – 88.8 thousand tonnes;
- Kyiv Oblast – 63.9 thousand tonnes.
Press Service of the Association of Milk Producers
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