Milk Producers Demand Stabilization of Purchase Prices to Preserve the Industry

Ukrainian milk producers have expressed concern over attempts by certain dairy plants to lower purchase prices for raw milk from November 1, from 17.2 to 16.50 UAH/kg, and in some cases even down to 15.8 UAH/kg (excluding VAT). Such actions, initiated by the “Union of Dairy Enterprises of Ukraine” (UDPU), could have a devastating impact on the entire dairy industry of the country.

This is reported by AgroReview

Threats to Ukraine’s Dairy Industry

According to the Association of Milk Producers (AMP), the period from November 2025 to September 2026 will be challenging for the industry due to a decrease in demand for fats on the global market, which is putting pressure on processors’ margins. However, a sharp reduction in purchase prices for raw materials is not a crisis management strategy; on the contrary, it could lead to the self-destruction of the market.

“Such actions are harmful, shortsighted, and destructive for the entire dairy industry of Ukraine. Ukraine is entering a difficult period from November 2025 to September 2026, when the temporary decline in demand for fats on the global market is putting pressure on the margins of processors for butter and dry milk. But a rapid decrease in raw material prices is not a crisis management strategy; it is self-destruction,” the association believes.

• reduction of investments in livestock;
• closure of small and medium dairy farms;
• loss of thousands of jobs in rural areas;
• increased import dependency of dairy products.

Proposals for Stabilizing the Situation

The AMP urges the UDPU to prevent prices from falling below 16.7 UAH/kg (excluding VAT) until the end of 2025, as this is the minimum survival threshold for most dairy farms. Further declines in value will lead to the collapse of the industry. The association also suggests implementing promotions in retail chains with discounts of 20–30% on butter and cheese for consumers.

Additionally, the AMP calls for an end to the manipulation of estimates of “super profitability” of farms, which can mislead processors. According to the association, in August 2025, the average operational profit of farms was only 13.3%, while the vast majority of small and medium enterprises operated at a loss—on average -1.4%.

Milk producers also demand an open dialogue between factories and farms, synchronization of planning and forecasting, as well as the activation of a “protective mechanism” within the agreement with the EU in case of threats to Ukraine’s economic or social interests due to imports. It is also emphasized that joint efforts with government bodies are necessary to combat the “gray” import of dairy products.