Ukraine’s dairy industry recorded an increase in raw milk procurement prices at the beginning of October 2026, supported by stronger domestic demand and renewed export activity. According to the Association of Milk Producers (AMP), the weighted average purchase price across three milk quality grades reached UAH 16 per kilogram, increasing by 90 kopecks compared with September.
The increase comes as Ukrainian dairy producers respond to changing market conditions and improving export opportunities. However, despite the monthly recovery, raw milk prices remain below their levels recorded in October 2025, highlighting the continuing challenges facing the country’s dairy supply chain.
Raw Milk Procurement Prices Increase Across Quality Grades
The AMP reported price increases across extra-grade, highest-grade and first-grade raw milk. Extra-grade milk recorded the largest absolute price increase among the three categories, rising by 90 kopecks per kilogram during the month.
The reported procurement prices exclude value-added tax (VAT) and reflect the rates paid to producers for raw milk.
| Milk quality grade | Average price (UAH/kg) | Monthly increase |
|---|---|---|
| Extra grade | 16.20 | 0.90 UAH |
| Highest grade | 15.60 | 0.60 UAH |
| First grade | 15.20 | 0.70 UAH |
| Weighted average across grades | 16.00 | 0.90 UAH |
The latest figures indicate a broad-based monthly improvement in procurement prices. Higher returns could offer some relief to dairy farmers facing production and operational expenses, although the actual benefit will depend on individual farm costs, milk quality and the quantities supplied to processors.
Despite the recent increase, the weighted average raw milk price was still UAH 1.30 per kilogram lower than in October 2025. This annual comparison suggests that the market has not fully recovered to its year-earlier price level.
Dairy Exports Provide Support to Procurement Prices
The Association of Milk Producers attributes the October price increase partly to stronger export activity. Ukraine exported nearly 1,500 tonnes of cheese in September, according to the reported figures.
The share of dairy products in the country’s total exports also reached 10.8% for the first time, as cited in the report. The development highlights the growing importance of overseas markets to Ukraine’s dairy processing sector.
Exports can influence domestic raw milk procurement prices by creating additional demand for processed dairy products. When processors secure orders in international markets, they may require greater quantities of milk for cheese and other dairy manufacturing activities. This can strengthen competition for available raw milk and support procurement prices.
However, the relationship between export growth and farmgate prices depends on several factors, including processing costs, product mix, export prices, exchange rates and domestic consumption.
Implications for Ukrainian Dairy Farmers and Processors
The monthly increase presents a positive signal for dairy farmers, particularly those supplying higher-grade milk. Better procurement prices can improve gross revenue and potentially support investment in animal nutrition, herd management, milk quality and farm productivity.
For processors, stronger export demand offers opportunities to increase production and expand their market presence. Cheese exports, in particular, can provide an additional route for selling domestic milk supplies beyond the local market.
Nevertheless, the year-on-year decline in raw milk prices remains an important consideration. Farmers must evaluate whether current procurement rates adequately cover feed, veterinary care, labour, energy and other operating expenses. Processors must also balance the cost of purchasing raw milk against the prices they can obtain for finished dairy products.
The reported export figures indicate improving commercial activity, but they do not establish whether the higher prices will continue in the coming months.
Outlook for Ukraine’s Dairy Industry
Ukraine’s raw milk market entered October with improved procurement prices, supported by stronger domestic demand and a recovery in dairy exports. The weighted average price reached UAH 16 per kilogram, while extra-grade milk rose to UAH 16.20 per kilogram.
For the dairy industry, the next challenge will be sustaining this improvement amid changing export demand and production economics. Continued export activity could help support milk procurement prices, while the ability of farmers and processors to manage costs will remain central to profitability.
The coming months will show whether the recent increase represents a sustained recovery or a short-term improvement in Ukraine’s dairy market.