Ukrainian dairy processors are asking immediate governmental assistance owing to raw material shortages and rising imports, which are disrupting operations. The Ukrainian parliament has planned a hearing on February 8 to review the present state of the dairy sector, with a focus on the severe raw milk shortfall. In 2023, the cow population in Ukraine fell by 4%, resulting in a scarcity that pushes up prices. The typical capacity utilization ratio of Ukrainian dairy processors is between 50% and 60%, affecting production costs and competitiveness. Without governmental assistance, milk firms cannot update their production capacity or sustain operations at last year’s levels. The National Security and Defense Council of Ukraine has issued a directive directing the authorities to begin on a 10-year development plan to avoid the dairy sector from degrading further. Without governmental assistance, the industry would gradually deteriorate. If milk production and animal numbers are not boosted, there will be an ongoing shortfall, resulting in high raw material costs. The Ukrainian national budget for 2024 has already been prepared without additional funding to boost the dairy industry, and any aid granted would not arrive until 2025. The issue remains whether the pinched national budget can support milk manufacturing subsidies.
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