The Ukrainian market is experiencing a decrease in milk production and an increase in purchase prices for milk due to ongoing hostilities and destruction of dairy farms. The number of cows in Ukraine has decreased by 15.4% compared to last year, and milk production has decreased by 14.8%. The average purchase price for milk has increased to UAH 11.60/kg excluding VAT, supported by high demand and seasonal reduction in milk production, but a decrease in global dairy prices is expected to impact raw material prices in the short term. Farmers and processors are facing challenges such as lack of working capital, lower quality of harvest due to heavy rain, difficulty in obtaining loans, increased cost components, and problems in creating a sufficient fodder base and purchasing meal due to landmines. The war has also led to a decrease in the sale of finished products on the domestic market and a recovery of demand estimated at only 2-10%.