Ukraine has a good potential to become a player on dairy export markets. However, today there are various bottlenecks in the dairy value chain to increase efficiency and sector performance. Russia and the CIS countries remain the main importers of Ukrainian dairy products. In 2005 66% of Ukrainian dairy products were exported to Russia1. The Russian import ban on dairy products caused decreasing of this share to 32% in 2006 and constituted 51,150 t. The amount of dairy products export to Russia increased in 2007 again up to 57,330 t. The share remained 32% in 2007.