Ukraine's dairy industry continues to experience significant instability due to butter price fluctuations. According to Infagro, sharp jumps in quotations in the summer of 2025 led to an increase in milk purchase prices, while a fall in butter prices caused a decrease in the cost of raw materials for producers.

The instability factor is due to the industry's high dependence on the butter market. Increased production volumes and export orientation have increased the impact of world quotations on domestic prices. The deterioration of the global market situation and signs of butter overproduction have led to a drop in export prices.

Domestic demand for butter has also weakened due to the high cost of the product. Exports have not been able to fully balance the market, which has led to the accumulation of inventories among producers and additional pressure on prices. The result has been a decrease in the profitability of dairy farms and the need to adjust production plans.

At the end of 2025, most producers limited sales of block butter, switching to packaged products with a minimum margin, often as part of promotions and special offers for consumers. Such a strategy allows maintaining sales volumes, but does not stabilize prices on the market.

Market analysts do not predict a significant improvement in the situation at the beginning of 2026. Prices are likely to remain under pressure, especially if butter imports increase, which will further increase competition for Ukrainian producers.

Thus, the dairy industry in Ukraine is in conditions of high volatility: the domestic market and global trends form an unstable situation that directly affects producers' incomes and the availability of the product for consumers. The situation requires market participants to be flexible and adapt production and marketing strategies.