Ukrainian dairy processors are seeking new export opportunities against a backdrop of increasingly difficult trade relations with the EU and price volatility in the global market. Arsen Didur, Executive Director of The Union of Dairy Enterprises of Ukraine, spoke in a brief interview about the situation in the sector and the outcomes of his visit to Algeria.

On the situation in the dairy market

– Describe the situation in the Ukrainian dairy market

From June 2022 to June 2025, a regime of autonomous trade measures, known as ‘trade visa-free’, was in force between Ukraine and the European Union. These measures provided for the complete suspension of import duties, quotas and trade defence measures for Ukrainian exports to the EU. Over the course of three years, Ukrainian dairy processing enterprises expanded their exports to European markets, thereby stimulating an increase in domestic prices for raw milk. As a result, dairy farming became an attractive investment opportunity.

Unfortunately, the new conditions for exporting to the EU – the introduction of quotas and the requirement to work through EU-accredited importers – have made our exports considerably more difficult. On top of that, there has been a price crisis.

For the third month running, the global dairy market has been experiencing a ‘perfect storm’ – with significant price fluctuations affecting both raw milk and dairy products. As Ukraine is part of the global dairy market, this ‘storm’ has not spared our country either.

– What do you see as the key aspects of the ‘storm’?

Firstly, this crisis situation is not in anyone’s interest in Ukraine. Neither the dairy farmers, who have put their investment plans on hold, nor the processors, who are under pressure from imported dairy products, which have also become cheaper and more competitive.

Secondly, Ukrainian producers and processors must become stronger in order to remain competitive. And the key factor behind this strength is the lower price of the end product. Such a goal is difficult and costly to achieve in peacetime, yet we are facing the challenges of a full-scale war.  It is important that the Ukrainian Government  and the industry work as partners and share a common vision for moving forward.

On the potential for cooperation between Ukraine and Algeria

– Could you tell us about the plans of Ukrainian dairy processors for the Algerian market?

The Ukrainian Dairy Industry Association is developing two channels for the sale of Ukrainian dairy products — domestic and international.

In terms of international trade, our aim is to increase exports of Ukrainian dairy products by opening up new markets. The People’s Democratic Republic of Algeria ranks second in the world in terms of milk powder imports. The requirements for logistics and product quality are extremely high.  Therefore, doing business with Algeria is a ‘mark of quality’ for dairy exporters.

In the first phase, we showcased the potential of Ukrainian dairy producers – Bilotserkivska Agro-Industrial Group (Biagr), Dairy Company Halychyna, Lustdorf, Ruzhyn-Moloko, Ternopil Milk Plant (TM Molokiya), Khmelnytskyi Butter and Cheese Base, Terra Food Group, Zolotonosha Butter-Making Plant, Vinnytsia Dairy Plant Roshen and Ukrproduct Group.

The second stage involves a working visit to Ukraine by representatives of the Algerian sanitary and veterinary service to conduct an audit of Ukrainian companies. As our companies export to European Union countries, we are confident in the outcome of the audit.

The third stage involves participating in auctions organised by Algerian state-owned operating companies.

– Who are or will be our companies’ competitors?

Algeria’s volume of dairy product purchases is very substantial: 300,000 tonnes of skimmed milk powder and 200,000 tonnes of whole milk powder per year. Consequently, there are many competitors, and they are very strong — namely New Zealand, Australia, Argentina, Uruguay, France, Russia and Belarus. But we are determined to compete for the Algerian market.

– We wish you every success and please keep us updated

Thank you. I certainly will.