Epicentr Agro puts dairy farm construction on hold as milk prices fall below cost

Epicentr Agro has suspended the implementation of its livestock projects, including the construction of a new commercial dairy complex in Khmelnytskyi region and the modernization of existing farms, Svitlana Nikitiuk, head of the company’s agricultural division, told LIGA.net in an interview.

According to her, the livestock business was developed in stages, in line with the expansion of the company’s land bank through the acquisition of corporate rights. At the initial stage, the enterprises were economically inefficient; however, the company managed to reach profitability in 2021.

Currently, the company’s cattle herd totals about 10,000 head, half of which are dairy cows. Over recent years, Epicentr Agro has significantly increased productivity: while average milk yield initially did not exceed 15 liters per cow, it now stands at around 30 liters and continues to grow.

The company planned to begin the active expansion of its livestock operations in 2026. It had been preparing to launch a large-scale investment project involving the construction of a modern commercial dairy complex in Khmelnytskyi region and the upgrading of existing farms.

“However, the drop in milk prices below production costs has forced us to take a short pause. Unfortunately, some milk processors have significantly reduced milk intake,” Nikitiuk said.