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Ukraine has increased exports of dairy products despite a decline in milk yields. During the full-scale invasion, the country managed to boost exports of dairy products to European countries, according to Maksym Hopka, an analyst at the Ukrainian Agribusiness Club. Milk powder and butter are the top milk products exported.
This was reported by Hopka on Hromadske Radio.
The analyst explained that the rise in exports is driven by several factors. These include strong demand in foreign markets and the transition to the colder season, when the consumption of dairy products increases.
«There are several reasons for the increase in exports. First, there is active demand in foreign markets, particularly in European countries. This is because prices for milk and raw materials remain high. Additionally, we are now entering a seasonal period where milk consumption increases. Moreover, there is also a rise in global dairy product prices,» Hopka explained.
He also highlighted the key categories of milk products being exported. Powdered milk, butter, and even cheeses in high demand. During the summer, Ukrainian ice cream is particularly popular.
«The majority of exports consist of milk powder, butter, and, in the summer, ice cream for about six consecutive months. Cheese exports have also been performing well over the past year and a half. The export structure of dairy products is as follows: 26% is milk powder, which is easier to export, while butter also accounts for nearly 26%. Ice cream makes up about 17%, and cheeses account for 17%. In total, these four products comprise almost 90% of total exports over the past month,» Hopka noted.
The analyst also discussed the main export destinations for Ukrainian dairy products. Before the full-scale invasion, eastern countries like Azerbaijan, Georgia, and Kazakhstan were popular markets. «Among our neighbors, Moldova was a major consumer of Ukrainian dairy,» Hopka added.
«Ukrainian dairy products have received positive feedback abroad. Our traditional markets were in the East, including Azerbaijan, Georgia, and Kazakhstan. Closer to home, Moldova was one of the largest importers of Ukrainian dairy products,» said Hopka.
However, after the full-scale invasion began, the EU market became more accessible to Ukraine. Exports to Spain, Greece, and Italy have increased, with these countries using Ukrainian milk powder to produce other popular dairy products. One of the reasons for this growth is the lower price of Ukrainian raw materials compared to those in the EU.
«In general, the EU market for dairy products has become more open to us. During the war, exports to Spain, Italy, and Greece have grown significantly, as these countries are major consumers. Why? Because the milk powder exported to them is processed into butter and other dairy products that are in high demand. There is a need for raw materials, and raw materials in Ukraine are cheaper than in the European Union,» Hopka added.