The dairy farming sector in Ukraine remains an attractive investment opportunity, particularly against a backdrop of declining profit margins and high capital expenditure. Viktor Korduban, Chairman of the Board of Directors of Bilotserkivska Agro-Industrial Group, spoke to NV Business about the sector’s economy, the role of technology and prospects for development.
Investing during wartime
The company had already begun building new facilities before the full-scale invasion, but the project had to be adapted to the new circumstances.
“In fact, the construction coincided with the outbreak of hostilities. We were forced to suspend it for a while, but we have since resumed work and are continuing with the project,” says Viktor Korduban.
The company is investing in the farm solely using its own working capital, which slows down the pace but allows it to retain control over its development.
Technology as the foundation of profitability
Korduban cites the adoption of modern technologies as a key factor in the efficiency of livestock farming.
“Success in business is, above all, about technology,” he emphasises.
According to him, it is technological solutions that enable businesses to boost productivity, cut costs and adapt to market changes.
Scaling up production
The farm currently has a herd of around 2,100 head of cattle and plans to expand further.
“We currently produce around 65 tonnes of milk a day,” says Korduban.
Once construction of the new farm is complete, the company plans to reach a daily production capacity of 100 tonnes.
The profitability of the dairy industry
Despite the decline in profitability, milk production remains economically viable.
“In previous years, the profitability of milk production could reach 80–100%. In 2025, it remained at no less than 50%,” he points out.
“At the same time, processing has significantly lower profit margins and does not yield such results,” adds Korduban.
A business venture, not a social project
In the entrepreneur’s view, profitability in livestock farming depends directly on the management approach.
“Livestock farming can be profitable if it is treated as a business rather than a social project,” he emphasises.
He also points out that cyclicality is the norm for the industry and should not hinder its development.
Focus on efficiency
One of the key challenges facing the industry is reducing production costs.
“We need to work on reducing production costs — both in milk production and in processing,” notes Korduban.
According to him, businesses must adapt to the challenges, including those relating to energy, logistics and market volatility.
Bioenergy as a source of additional income
Another area of focus is the development of energy projects, in particular the production of biomethane.
“Livestock farming will only be truly successful for those who learn how to make money from manure,” he emphasises.
In this model, milk may be just one of the products, and added value is generated through the integrated use of resources.
Market outlook
According to Korduban, 2026 will be a relatively stable year for the sector, and the key to success will continue to be internal business efficiency rather than external market fluctuations.
Thus, the dairy sector in Ukraine retains its potential for growth, but requires a systematic approach, investment in technology and a focus on long-term efficiency.
Source: biz.nv.ua
