Aim:
Identification of the competitive position of Poland and Ukraine in foreign trade in selected main products of the dairy industry from 2021 to 2023.

Material and methods:
To assess the level of mutual competitiveness of the Polish and Ukrainian dairy industries on foreign markets (EU and non-EU), the export–import coverage index (TC), indicators of revealed comparative advantages, including the index of relative comparative export advantage (XRCA), the index of relative import absorption capacity (MRCA) and the index of relative trade advantage (RTA) were used.

Results:
From 2021 to 2023, Poland had high comparative advantages in foreign trade in dairy products. The competitive position of the Ukrainian dairy industry in relation to Poland is assessed as moderately high, despite the lack of self-sufficiency in dairy products, underutilization of processing capacity with raw materials, negative balance of foreign trade in dairy products. Ukraine had higher comparative advantages than Poland on foreign markets in the case of trade in butter and milk fat, condensed and powdered milk, and whey. Poland has greater competitive advantages than Ukraine in the production of liquid milk and cream. There is no competition in the field of cheeses and cottage cheeses as well as yogurts and fermented beverages.

Conclusions:
In order to maintain and increase the competitiveness of dairy production, Poland should implement modern innovative technologies and develop breeding. Polish and Ukrainian dairy industries have opportunities for cooperation at the stage of production and trade in dairy products. This study can be used to create a development strategy for the Polish dairy industry.