Export potential of the dairy industry of Ukraine

Abstract

Introduction. In the context of Russian aggression, agricultural production has become the leading source of foreign currency inflow for the state.

Problem. Not only crop production, but also animal husbandry, especially dairy production, have proven to be quite stable. The removal of quotas for the import of Ukrainian milk and dairy products by the European Union has enabled the domestic dairy industry to signifi­cantly increase the volume of its own exports. Therefore, it is important not only to maintain the current level of export of milk and dairy products, but also to significantly increase it, using the existing potential.   

The aim of this article is the analysis of the current level and the main factors affecting the export of milk from Ukraine, as well as the justification of the most favorable directions for increasing its volumes in the conditions of Russia’s military aggression. 

Methods. General scientific methods of research are used: systematic and complex analysis, synthesis, abstraction.  

Results. The volumes of modern domestic production of dairy products meet the domestic needs of the population, and therefore there is an opportunity to increase the export of these products. The continuous increase in the productivity of cows contributes to the further expansion of the export opportunities of the dairy industry. In the pre-war period, domestic exports were characterized by the predominance of their direction to the European Union and even distribution among other regions. Instead, during the war year 2022 it was observed not only the absolute dominance of exports to the EU, but also a significant decrease in exports to other regions of the world. However, despite the high indicators of cow productivity in EU countries, the level of milk and dairy product supply in most countries is insufficient. This situation arises from a substantial reduction in the number of cows and an increase in the demand for dairy products.

Conclusion. Ukraine has significant export potential for milk and dairy products. The most promising direction is enhancing the export of these products to EU countries. At the same time, domestic producers can significantly increase the volume of exports of dairy products to the countries of Southern Europe, and raw milk to the countries of Western Europe. The markets of Asian and African countries also remain promising.