Ukraine is experiencing a surge in dairy product prices due to a raw milk shortage, causing a decrease in demand, particularly among those with lower incomes. The high production costs of dairy products, which are largely dependent on raw milk, are contributing to the price hike. The reduction in demand is expected to stabilize raw milk prices by December, but the situation is worsened by dairies and processing plants prioritizing exports to the EU over the domestic market, leading to a decrease in production for the domestic market. The decline in the number of dairy cows in Ukraine, by 6.5% since last year, also contributes to the production shortfall.