The current state, realities and development trends of the dairy industry of Ukraine are revealed. The main losses of the dairy industry during the war are identified. They are: 39 enterprises are located in the occupied territories, a decrease in livestock in the population sector, an increase in falsification, the growth of the shadow market (more than 20%), the complication and increase in the cost of export logistics, EU fears about threats from exports from of Ukraine. The analysis of the main indicators of the development of the dairy industry in Ukraine was carried out and a decrease in the number of milk processing enterprises, the volume of milk production and the volume of milk processing was revealed. A decrease in the share of milk production by households was established, which is caused by a decrease in the number of cattle in the households due to insufficient support for dairy farming from the state (as a result, a shortage of dairy raw materials restrains the development of the dairy industry). The export-import activity of the dairy industry was analyzed and a decrease in imports due to the outflow of immigrants abroad and changes in the exchange rate and growth in the volume of exports of dairy raw materials was revealed. The situation is especially threatening for those producers who produce cheese, because the specific weight of cheese in imports is 70%. It was revealed that increasing of export of dairy products without Ukrainian ports had become a difficult test for the dairy industry. Thanks to the strong cooperation of state authorities with European partners, Ukrainian companies found new sales markets and were able to increase the volume of goods on the EU market significantly. Prospects for the development of the dairy industry have been identified, effective measures at the legislative, macro- and micro levels regarding the revival of the Ukrainian dairy industry have been suggested and substantiated. It is founded that in order to rebuild and ensure the effective development of the dairy industry, it is first of all necessary to make changes at the legislative level, in particular to the Tax Code, to reduce the VAT for all dairy products, to cancel the VAT for imported innovative equipment, to promote the support of the industry at the state level, namely to focus on construction and reconstruction of livestock and processing complexes; to create opportunities under which enterprises will be able to produce milk in accordance with European sanitary standards.
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