A quote from Taras Kachka, Deputy Prime Minister for European and Euro-Atlantic Integration, has gained widespread attention in the Ukrainian media following his interview with “Ukrainska Pravda”, in which he stated that Ukraine is the leading exporter of kefir to the European Union. Taras Kachka also noted that the government aims to increase export quotas for butter and milk powder to the European Union. 

We contacted Arsen Didur, Executive Director of The Union of Dairy Enterprises of Ukraine (UDEU), for his comments on the Deputy Prime Minister’s interview, and published our conversation with him in the form of a quick-fire interview. 

About working in the EU market

Deputy Prime Minister Taras Kachka stated in his interview with “Ukrainska Pravda” that Ukraine has become the leading supplier of kefir to the EU. Please comment on this sensational news for our readers. 

It was good to hear that our dairy exporters’ successes are making their mark. But I wouldn’t call this sensational news, because sensational news happens unexpectedly. The arrival of products such as kefir or condensed milk in the EU was preceded by a great deal of work, which took place unnoticed from the outside, within the industry itself. And this was preceded by a rather long history of changes in our companies’ export activities. With your permission, I’d like to say a few words about this first.

More than 10 years ago, the shift of Ukrainian dairy exports from the russian market to the European market was a necessary but strategically sound move. The turning point came in 2014, when russia imposed an embargo on Ukrainian dairy products. Before this, for example, around 83% of cheese exports were destined for russia, so the industry lost what was then its key export market. In 2015–2016, producers were already actively seeking new markets both in Asian countries and within the European Union. 

The reorientation of trade flows was also facilitated by the conclusion of several important government agreements. As is well known, the Association Agreement between Ukraine and the EU, signed in 2014, marked the beginning of Ukraine’s economic integration with the European Union. In January 2016, the Deep and Comprehensive Free Trade Area (DCFTA) Agreement between Ukraine and the EU came into force. Recently, on 30 October 2025, an updated Agreement came into force, providing for further liberalisation. It takes into account the sensitivity of certain sectors of the EU’s agriculture, whilst ensuring stable exports. Thus, Ukrainian businesses have gained simplified access to the market of the world’s largest trading bloc.

It must be said that Ukrainian dairy producers have skilfully seized the opportunities available and, by targeting the EU market, have managed to boost their export activities. In 2016, the first 13 dairy companies obtained export licences for Europe and began systematic work in this area. Since then, their number has grown significantly. There are now around 60 such dairy companies. Europe is already buying our condensed milk, kefir and other dairy products.

I must mention that the UDEU, as the representative of milk processors, had to overcome some resistance from European institutions in order to demonstrate, amidst the heated debates and protests that erupted in the EU over the export of Ukrainian agricultural products, that our dairy products do not pose a threat to European producers. We were supported in the negotiations by the Ukrainian government, Taras Kachka, Deputy Prime Minister for European and Euro-Atlantic Integration, our Polish colleagues, in particular the Polska Izba Mleka, and the European Dairy Association. 

So, as you can see, a great deal of work goes into getting our dairy products onto European shelves. The EU market is no easy feat: it is well-protected, and getting any product from other countries onto it requires considerable effort.

On the revision of export quotas to the EU 

Taras Kachka also emphasised that the government aims to increase export quotas to the EU for butter and milk powder. What is your assessment of the prospects for these export categories on the European market?

There is no doubt that the sector needs further expansion of access to the EU market. The UDEU is in constant communication with the Ukrainian government to ensure that the interests of Ukrainian producers are taken into account as fully as possible during negotiations with the European Commission. The key issue remains the increase in export quotas, and this applies not only to butter and milk powder but also to condensed milk, which is currently exported in significant volumes to Germany (23% of total exports of this product), and fresh dairy products. It is in these areas that Ukrainian companies have significant potential and are counting on the government’s support in promoting the relevant decisions.

As for butter and milk powder, export prospects are determined primarily by conditions on the global market.

The situation is as follows: following a prolonged period of decline, the global market is now seeing an upward trend in butter prices. This offers hope for a recovery in exports to the EU and makes it possible to produce butter alongside skimmed milk powder (SMP) without incurring a loss. 

The same applies to milk powder: prices for milk powder are currently rising sharply on global markets. Consequently, demand for Ukrainian skimmed milk powder has increased significantly, and prices have risen as well. Since the start of the year, Ukrainian skimmed milk powder has risen in price by approximately 17%.

What are the main barriers to the export of Ukrainian dairy products to the EU? 

As I mentioned earlier, the EU market is well protected. We are therefore grateful to the government for its cooperation and for its attention to the sector’s needs, particularly those of our exporters. 

As for the barriers. Firstly, there are strict requirements regarding the quality of the raw materials used to produce dairy products, as well as the quality of the products themselves. Without meeting these requirements, it is impossible to obtain permission to export to EU countries. 

In addition, there are trade barriers, including quotas, procurement procedures, transport requirements, and much more. 

Another barrier is the currently weak price competitiveness. The high cost of raw materials creates a barrier that is difficult to overcome. It is impossible to sell expensive dairy products in a market where prices are lower.

There are also political barriers. European politicians cannot ignore the concerns of farmers who are not keen on Ukrainian farmers gaining access to the EU market. Efforts must be made to convince European officials that restrictions should not apply to the Ukrainian dairy products we export to Europe.

There are many obstacles. That is why, alongside improving product quality, advancing technology, and securing export licences for the EU, the sector is also working on its long-term development. In particular, a Roadmap for the European integration of the dairy sector has been developed, which is intended to coordinate the actions of business, the government, and parliament on the path to full compliance of our dairy production practices with EU standards. The Roadmap aims to ensure the systematic strengthening of the Ukrainian dairy industry’s position in the European Union market and to create conditions for stable export growth. 

I would like to emphasise that our Ukrainian partners – the Ukrainian Milk Producers Association and the German company Prospex – provided assistance in drafting this important document, with the support of:

  • ⁠Switzerland, as part of the Swiss-Ukrainian programme ‘Development of Higher Value-Added Trade in the Organic and Dairy Sectors of Ukraine’ (QFTP), implemented by the Research Institute of Organic Agriculture (FiBL, Switzerland) in partnership with SAFOSO AG (Switzerland);
  • The Embassy of the Kingdom of the Netherlands in Ukraine.

Thank you for your replies

Always happy to!