Ukraine: Dairy and Products Annual

  |   Attaché Report (GAIN)   |   UP2022-0073

Dairy cow inventory is expected to decrease significantly in 2022. The decrease is driven by a war-related economic downturn, direct animal losses in war-affected areas and a historic reduction in less-efficient animals. Fluid milk and dairy product outputs are expected to drop notably in 2022. The decline will continue in 2023 due to the reduced animal number and continued war-related economic downturn. Consumption in 2022 is expected to decline drastically, driven by the ongoing refugee crisis and lower disposable incomes. Exports of dairy products in 2022 will grow as a drop in domestic consumption creates an excess of raw milk, despite the milk production reduction. Dairy product imports are expected to decrease in 2022 due to plummeting incomes, currency devaluation, and import logistics problems.

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