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Ukraine Ramps Up Dairy Exports as Global Prices Surge

by Roman Cheplyk
Friday, February 7, 2025
2 MIN
Ukraine Ramps Up Dairy Exports as Global Prices Surge

Ukrainian dairy producers kicked off 2025 with a notable boost in export volumes, spurred by rising international prices and growing foreign demand for key dairy commodities

According to preliminary data from the State Statistics Service of Ukraine, exports of dairy products in January 2025 reached 8.1 thousand tons, marking a 12% increase from December 2024 and a 23% rise compared to January 2024.


Top Export Categories

  1. Condensed Milk & Cream (29%)
  2. Whole Milk & Cream (21%)
  3. Whey (18%)
  4. Cheese (12%)

Month-to-Month Growth

  • Butter: +71% (to 749 tons)
  • Ice Cream: +37% (to 490 tons)
  • Condensed Milk & Cream: +16% (to 2.33 thousand tons)
  • Whey: +12% (to 1.44 thousand tons)
  • Buttermilk: +10% (to 422 tons)
  • Cheese: +9% (to 935 tons)

In contrast, whole milk & cream exports dipped by 9% to 1.72 thousand tons, while casein was not exported at all in January 2025.


Year-over-Year Highlights

Comparing January 2025 to January 2024:

  • Butter: +198%
  • Ice Cream: +77%
  • Whey: +55%
  • Cheese: +52%
  • Buttermilk: +42%
  • Condensed Milk & Cream: +38%

Meanwhile, whole milk & cream saw a 32% decrease over the same period.


Key Drivers Behind the Growth

Analysts attribute the export surge to high global prices for dairy. Since the start of 2025, prices for butter and cheese have climbed for three consecutive Global Dairy Trade (GDT) sessions, and milk powder has risen for two auctions in a row. According to USDA data, prices for 82% butter in Western Europe hit $7,600 per ton in late January (up from $7,350 per ton earlier in the month), reflecting robust market demand for milk fats and whole milk powder.


Outlook for Investors

  • Strong Global Demand: Rising international prices and consumer demand suggest continued export potential for Ukraine’s dairy sector.
  • Production Expansion: Given the surge in exports, producers may seek capacity upgrades and technology investments to scale operations.
  • Competitive Position: Ukraine’s favorable cost structure and high-quality dairy output could offer long-term opportunities in emerging and established markets alike.

With global prices on the upswing and Ukrainian dairy producers scaling up their export operations, 2025 looks set to be a promising year for Ukraine’s dairy industry—and for investors interested in this thriving agricultural sector.

 
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