Ukraine increases exports of canned dairy products, but EU shipments may face challenges

Ukraine increased exports of condensed milk and milk-containing canned products in July compared with June amid a seasonal recovery in the market. However, further growth in shipments could be complicated by tighter veterinary controls in the European Union, particularly for milk-containing and composite products.

The new EU requirements will take into account not only the country where the finished product is manufactured but also the origin of dairy ingredients and the veterinary status of all countries involved in the production chain. This could create additional difficulties for Ukrainian producers, particularly when imported vegetable fats are used in canned products.

This is particularly important given the structure of Ukrainian exports. In July, Germany accounted for 43% of Ukraine’s total canned dairy exports, making it the largest destination. Moldova accounted for 11%, Kyrgyzstan for 9%, Turkmenistan for 8% and Georgia for 7%, while other countries together accounted for 22%.

As a result, almost half of Ukraine’s canned dairy exports depend on a single EU market. Tighter veterinary requirements could create additional risks for shipments to Germany and constrain further export growth. Meanwhile, prices for canned dairy products have remained largely unchanged.

Overall, Ukraine’s dairy exports increased in July compared with June, but the year-on-year picture remains weaker. Total dairy product shipments and export revenues declined, meaning that potentially more difficult access to the EU market could become an additional challenge for Ukrainian producers.

Tags: condensed milk, Ukraine, EU, Milk, dairy products