Milk Prices in Ukraine Rise, Processors Lose Profit

At the end of August, milk prices in Ukraine increased, but processors cannot take advantage of seasonal demand due to complicated logistics and changed working conditions with retail. Over seven months, dairy plants purchased nearly 2 million tons of milk, which is 5% more than in the same period last year, thanks to a more than 5% increase in production by agricultural enterprises. At the same time, households reduced production by 27% to 1.6 million tons, indicating a change in the structure of the industry: large agricultural enterprises are compensating for the reduction in production by households. Russian strikes on food infrastructure are also affecting the market, forcing retail chains to reconsider working conditions with suppliers and shift some risks onto them. Analysts emphasize that the main problem remains not the quantity of milk for processing, but the ability to increase sales under conditions of military and logistical risks. As a result of the first half of 2026, the volume of milk processing in Ukraine increased by 6% compared to the same period last year.

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