Sign of the times: Ukraine’s small dairy farms are disappearing

Marinka Hritsik, a dairy farmer near Chernihiv, Ukraine, has observed a significant shift in Ukraine's dairy farming landscape. Once, there were eighteen household-owned cows in her village, but now there are only seven. Hritsik predicts that by winter, there may be no cows left on her farm. This national trend reflects the disappearance of smaller dairy farms as larger ones continue to expand.

Factors contributing to this shift include high costs, low prices, EU regulations, and the ongoing war. Despite the government's 2035 dairy industry strategy, the future of small farms remains uncertain, raising questions about the impact on rural communities if they disappear. According to Hritsik, producing a liter of milk costs around Hr 13 ($0.29), while farms typically sell it for Hr 15 per liter.

However, small farms often receive as little as Hr 9 per liter, leading to potential losses and closures. The war has exacerbated the challenges faced by small dairy farmers, with workers absent on military duty and land lost to occupation or destroyed by explosions. Additionally, winter poses a significant challenge for dairy farms due to the lack of grass, forcing animals to rely on expensive feed and resulting in less milk production.

The global economic situation, including slumping milk prices, rising fertilizer and fuel costs, and EU regulations, further strains small farms operating with slim margins or even at a loss. Hritsik highlights the costs associated with complying with EU animal health and welfare standards, which require significant upfront investments and are difficult for struggling farmers to afford.

Moreover, the pressure from European farmers with more favorable taxes, subsidies, and shorter logistics costs creates additional hurdles for Ukrainian dairy producers. As a result, Ukrainian dairy products are increasingly competing with imported alternatives, both in terms of price and quality. This economic pressure is contributing to a concerning trend in Ukraine's rural economy, where smaller farms struggle to survive while larger ones continue to grow.