The government will oversee the development of dairy farms

President Volodymyr Zelensky instructed the Cabinet of Ministers to develop a compensation program for the construction of dairy farms. The relevant directive was announced after a meeting with business representatives, during which the President discussed the state's actions regarding efficient land use and the development of dairy farming.  

As noted by the press service of the Office of the President, Volodymyr Zelensky instructed officials to work on and resolve the discussed issues, as well as to develop a compensation program for the construction of dairy farms. The Association of Dairy Enterprises of Ukraine pointed out that the government's attention to the dairy sector is also evidenced by the fact that the state budget for 2025 allocates UAH 1 billion for the development of livestock and the agro-processing sector. 

At the same time, it should be noted that the acceptance of applications to the State Agrarian Register for special budget subsidies for maintaining a herd of cows in the amount of UAH 7,000 has been suspended. According to the Ministry of Agrarian Policy and Food of Ukraine, during the application period, farmers submitted 11,508 applications to the State Agrarian Register for a total of UAH 385.75 million. Currently, the opening of subsequent waves of the program is not ruled out, so farmers are advised to keep an eye on official announcements. 

Let us remind you that starting February 3, farmers could submit an application for special budget subsidies for maintaining cows, goats, and sheep through the State Agrarian Register. As part of the state subsidy provision, farmers were granted UAH 7,000 per head for those who own from 3 to 100 cows of all productivity types and UAH 2,000 per head for those who keep a breeding herd of goats or sheep from 5 to 500 heads. 

Additionally, the market for fresh dairy products began to revive in February. According to analysts, sales growth is occurring very slowly, with no positive dynamics observed during the same period in previous years. In February, prices began to stabilize, but by this time they had already reached a very high level. According to experts, in order to stimulate sales, it would be appropriate to generally reduce prices, especially for sour cream and fermented cheese. In any case, further increases in prices should definitely not occur. 

Currently, experts predict that major players will soon attempt to resort to promotional sales with significant price reductions more frequently. Analysts emphasize that domestic producers should already be alarmed by the substantial increase in the import of fresh dairy products. In January, imports were 55% higher than the same period last year. Previously, mainly yogurts and curd products were imported into Ukraine, but in January several hundred tons of cheap Polish milk were imported. Currently, Polish imports account for 60% of the total volume of fresh dairy products. 

Incidentally, milk is among the leaders in price increases for products in Ukraine. The rise in milk prices, which affects the cost of products in this group, is ongoing. According to experts, a significant volume of raw milk is produced in households, however, farmers have sharply reduced the volume of raw production due to a physical shortage of labor. Analysts note that the current situation provokes a rise in prices for dairy products. 

In turn, Ukrainian exporters of dairy products have increased supplies abroad, taking advantage of high prices for exchange goods and the activation of demand in external markets. This was reported by analyst Georgiy Kukhaleyshvili from the Association of Milk Producers. In particular, according to him, in January of this year, dairy product exports amounted to 8,100 tons, which is 12% more compared to December 2024 and 23% more than in January 2024. 

Additionally, new rules for conducting laboratory research in Ukraine have been approved, which stipulate the improvement of measures for the proper circulation of milk and dairy products in Ukraine's agro-food markets. According to the Ministry of Agrarian Policy and Food, requirements for sample selection and the frequency of quality and safety control indicators for dairy products are being introduced.