Ukraine imports 3.4 times more dairy products from the EU than it exports

Ukraine continues to increase dairy imports from the European Union amid declining exports of its own products. In January–September 2026, the value of dairy imports from the EU rose by 22% to $280.3 mln, while Ukrainian dairy exports to the European market totaled approximately $82 mln. Overall, Ukraine exported $203.6 mln worth of dairy products to all global markets, down 16.2% from the same period last year. As a result, dairy imports from the EU exceeded Ukraine’s exports to the bloc by 3.4 times.

The structure of trade also highlights significant differences between the Ukrainian and European dairy industries. Powdered and condensed milk account for around 90% of Ukraine’s dairy exports to the EU, while cheese dominates imports from the bloc, representing 74% of the total. Rising shipments of European cheese are intensifying competition in Ukraine’s domestic market, forcing local producers to offer more discounts and accept lower profit margins.

According to the Association of Milk Producers, one of the main reasons for unequal competition is the difference in financial resources available to Ukrainian and European companies. Polish and other EU producers have benefited for many years from investment programs, preferential loans and grant support under the Common Agricultural Policy. Meanwhile, Ukrainian companies operate under wartime conditions, with damaged infrastructure and limited access to financing, while simultaneously investing in adapting their production facilities to European standards.

Another major challenge is the need for large-scale modernization of dairy farms. According to the industry association, more than 60% of Ukraine’s dairy farms require substantial upgrades to comply with European animal welfare standards. Modernizing older facilities could cost €500–1,200 per cow, while total investment needs are estimated at approximately €219 mln. Ukrainian producers also face a significantly shorter transition period to meet these requirements than Polish companies had during their integration into the EU.

Improving the competitiveness of Ukraine’s dairy industry will require broader access to affordable loans, grant programs and investment in processing facilities. According to expert estimates, European dairy producers received approximately €35 bln in EU budget funding between 2014 and 2024 for modernization, energy efficiency improvements and the introduction of new technologies. Without similar support mechanisms, Ukrainian companies will struggle to meet European requirements while competing with imported products in both domestic and international markets.

Tags: Ukraine, EU, dairy products