Strategic Push for Greater Dairy Market Access
In a strategic push to bolster its dairy exports, Ukraine is actively negotiating an increase in tariff quotas with the European Union (EU), targeting core products such as condensed milk, powdered milk, and butter. The move reflects Kyiv’s intention to deepen its agri-trade alignment with the EU and secure greater market stability for its dairy sector amid ongoing geopolitical and logistical challenges.
Existing Framework Under Review
According to Taras Kachka, Ukraine’s Deputy Minister of Economy and Trade Representative, the current quota framework—which covers three essential dairy exports and includes partial quotas for six additional dairy items—may soon be overhauled.
“We will significantly revise both the list of dairy products subject to quotas and the availability of these quotas,” Kachka noted in a recent blog post on AgroTimes.
Powdered Milk Export Leads the Way
Under the current regime of autonomous trade preferences, Ukraine has exported approximately 15,000 tons of powdered milk to the EU—volumes redirected in part from Asian markets due to logistical constraints. Kachka anticipates this redirected trade will continue, signaling a potential shift in Ukraine’s dairy export geography.
Condensed Milk and Butter: Mixed Signals
“For condensed milk, the EU quota remains underutilized, standing at 10,000 tons, while our exports pre-war were just over 3,000 tons. Butter tells a different story—we exported around 1,500 tons within a 3,000-ton duty-free quota between 2022 and 2025, with a spike in May this year,” Kachka explained.
Whether this surge is a temporary phenomenon or a sustained trend remains under market evaluation.
Strengthening EU Dairy Ties, Especially with Poland
Ukraine’s dairy industry enjoys uniquely cooperative ties with EU producers, particularly in Poland, a dynamic that Kachka believes is vital to future integration. While political apprehensions still cloud discussions of full liberalization, he remains optimistic that broader trade alignment will emerge as Ukraine advances its compliance with EU production standards.
“We’re still operating under last year’s quota parameters. But since June 6, the quota counter has been reset, creating space for increased duty-free exports over the next few months,” said Kachka.
“Our target is to reach expanded export volumes by August and to create predictability for next year’s trade.”
A Defining Moment for Ukraine’s Dairy Export Landscape
The dairy trade realignment comes at a time when Ukraine is actively pursuing broader access to European agri-food markets, positioning dairy as a key driver of its rural economy and export resilience.
