Ukraine and the EU will significantly revise the list of dairy products subject to quotas

Ukraine is negotiating an increase in tariff quotas with the EU, in particular for dairy products. This was reported by Deputy Minister of Economy and Trade Representative of Ukraine Taras Kachka in a blog on AgroTimes.

“Ukraine has three basic dairy products that are subject to quotas: condensed milk, powdered milk, butter. Another one — hard cheese — is not subject to it. For other products, partial quotas are in effect — as many as six tariff quotas. But I think that we will significantly revise both the list of products subject to quotas in the dairy sector and the availability of these quotas in general,” he believes.

Taras Kachka noted that during the period of autonomous trade preferences, 15 thousand tons of powdered milk were sent for export to the European Union. Part of this product was redirected from Asian markets due to problems with logistics, however, in his opinion, this volume will remain in the European Union.

“For condensed milk, the tariff quota is much larger than our exports. Before the war, we sold 3 thousand+ tons to the EU for a quota of 10 thousand tons. There was also a phenomenal story with butter. We exported duty-free during 2022-2025 within the quota (3 thousand tons) – about 1.5 thousand tons. And this year, especially in May, we sold a very large amount of butter. But whether this is a one-time story or a trend, we would like to hear from the market. I think here we will reach indicators that will allow us to develop normally,” the trade representative assured.

He noted that the dairy industry of Ukraine is the only one that has very friendly relations with European producers, in particular with Polish ones. In addition, joint statements are being made by specialized associations about the need to support open trade. However, the feeling of mutual openness has not yet arrived, so we can talk about some kind of full liberalization in a few years, when Ukraine as a whole will move forward on the path of integration into European production standards (which our exporters fully comply with, but about which there are many political prejudices).

“I think that in the coming weeks we will be able to announce at the government level the quota figures that will be in effect this year. After all, we are currently working according to last year’s parameters. And since June 6, the quota counter has been reset. Therefore, there is room for duty-free trade for the coming months. Our goal is to reach new volumes at least in August, when the quotas may already be exhausted, that would allow this year, and next year too, to trade quite freely and predictably,” Taras Kachka concluded.

Tags: Ukraine, EU, butter, dairy products