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Summary of dairy trade - Russia and the Ukraine
Thursday, 3 March 2022
The impact of the ongoing conflict in Ukraine with Russia will have little direct impact on UK or EU dairy markets. Most western nations, including the EU-27 and the UK, have been banned from trading dairy products (as well as many other agricultural products) with Russia since 2014 when Russia annexed Crimea. Russia now trades almost exclusively with Belarus, who are responsible for 85% of total Russian dairy imports.
Meanwhile, the Ukraine is more reliant on the EU-27 for its dairy imports, although it also imports a significant volume from Belarus. Across all product categories, Belarus accounts for 23% of total Ukrainian dairy imports with the EU-27 making up 76%. Poland and Germany are the key suppliers, with most trade in cheese. The UK does minimal trade with Ukraine, exporting less than 300 tonnes of dairy product in 2021.
Although the EU-27 is the source of the majority of dairy products imported to Ukraine, it equates to only 1.6% of the EU-27’s external dairy export volumes. This means any direct disruption to dairy markets should be minimal, and whilst global dairy supplies remain tight, it is likely any displaced product will easily find a new market destination.
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