Milk Production in Ukraine Decreased by 10% in the First Quarter of 2026

Milk Production in Ukraine Decreased by 10% in the First Quarter of 2026

From January to March 2026, Ukraine produced 1.31 million tons of raw milk, which is 10% less compared to the same period in 2025. This trend resulted from a decline in production in household farms against a backdrop of rising costs and challenging economic conditions.

This is reported by Finway

Production Dynamics in Different Categories of Farms

In March 2026, all categories of farms produced 496.2 thousand tons of raw milk — 59.7 thousand tons less than in March last year, which corresponds to a decrease of 10.7%. The share of enterprises in this indicator was 58%, while household farms accounted for 42% of the volumes.

“In January-March 2026, Ukraine produced 1.31 million tons of raw milk, which is 144.3 thousand tons less (-10%) compared to the first quarter of 2025 and 236.8 thousand tons less (-15%) compared to the fourth quarter of 2025,” the report states.

At the same time, enterprises increased their production volume in March to 285.8 thousand tons, which is 4.9% more than last year. For the first quarter, their contribution amounted to 805.3 thousand tons of raw milk, demonstrating a growth of 3%. In contrast, household farms saw a decrease in milk yields in March by 25.8% — down to 210.4 thousand tons, and for the first quarter, 510 thousand tons of milk were produced, which is a quarter less compared to 2025.

Challenges for the Industry and Regional Trends

Industry experts note that producers are facing a number of problems: low purchase prices, rising costs for fuel, gas, and fertilizers, labor shortages, security risks, disruptions in energy supply, and limited access to financing. The situation is particularly challenging in frontline regions, especially in Kharkiv, where farms are experiencing significant losses and are forced to reduce their activities.

In the context of Euro-integration, the Ukrainian dairy industry is facing new EU standards that require investments in production modernization. According to experts, due to the crisis and martial law, 10-15% of small and medium-sized dairy farms are at risk of closure, increasing the need for state support.

At the same time, in March 2026, 12 regions demonstrated an increase in raw milk production among agricultural enterprises. The largest growth was recorded in Rivne (+30%), Lviv (+16%), Ivano-Frankivsk (+15%), and Ternopil (+13%) regions.

Additionally, in the first quarter of 2026, the number of cows decreased in both personal peasant farms and industrial farms in Ukraine.

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