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Ukrainian dairy sector bounces back

12 May 2022 - Klaas van der Horst

Ukrainian milk production and processing are gradually recovering from the war that has gripped much of the country in recent months. As the battle centers more in the east and southeast, life in the rest of the country is getting more and more alive.

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About 70% of the dairy sector has now returned to normal operations, reports the Ministry of Agriculture. The supply is increasingly returning to the rhythm before the raid and the sales of products are also increasingly following the old patterns, although of course not everywhere. In some places there has simply been too much destruction. More time is needed for recovery. The Agriculture Committee of the Ukrainian Parliament is pleased with the progress made and signals more positive developments. 

Exports are also getting back on track
At the start of the invasion, dairy producers were frequently forced to stop or interrupt production due to attacks on production sites, supply disruptions and other logistical problems. That is now a thing of the past in most of the country. Some exports are even starting up again.

In April, 5.630 tons of product were exported, which is only 21% less than in April 2021, the agricultural commission noted. However, due to the war and especially because import products have become more expensive, a lot of imports are being replaced. Consumers are buying more of their own, cheaper Ukrainian products. Import is extra expensive. Partly as a result, imports of dairy products also fell in April to 3.326 tonnes, which is 62% less than a year earlier.

Livestock feed supply is still a concern
There is still concern about the supply of sufficient good animal feed. Due to the hostilities and undetected explosives, harvesting cannot take place everywhere. The sharply increased prices of a number of raw materials for dairy farming are also a major problem. Feed costs account for 70% to 80% of all costs on Ukrainian dairy farms. 

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