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Export pushes up the prices of raw milk in Ukraine
Purchase prices continue to grow in Ukraine due to the active demand for raw milk from milk processing enterprises, which want to increase export volumes, while the prices of exchange goods are high in the world, — reports the analyst of the Association of Milk Producers, Heorhiy Kukhaleishvili.
The average purchase price of Extra Grade milk as of September 1 amounted to 15.69 UAH/kg without VAT, which is 1.07 UAH more than a month ago. The range of prices for this grade in farms varies from 14.10 to 16.40 UAH/kg without VAT. The upper limit of the price range increased by 1.20 UAH for the last month. The lower limit of the price range increased by 0.50 UAH.
Higher Grade on average costs 15.69 UAH/kg without VAT (+ 1.07 UAH). Prices for Higher Grade milk range from 14.10 to 16.40 UAH/kg without VAT. Compared to the monitoring results of the first half of August, the upper limit of the price range increased by 1.20 UAH, and the lower limit increased by 0.50 UAH.
The average price of Grade I milk was 14.19 UAH/kg without VAT, which is 0.67 UAH more compared to the price in the first half of August. The minimum price in farms was 13.50 UAH/kg, and the maximum price was 15.00 UAH/kg. Over the last month, the lower limit of the price range has increased by 0.85 UAH, and the upper limit has increased by 0.75 UAH.
Accordingly, the weighted average price of three grades amounted to 15.19 UAH/kg without VAT, which is 0.94 UAH more than a month ago.
Giorgiy Kukhaleishvili suggests that the rise in prices for raw milk is related to the reduction of milk in the pile with the rise in prices and the activation of demand for exchange goods on foreign markets. In Ukraine, there is an active demand for raw milk from processors, which exceeds the existing supply. Since the end of June, Ukraine has been experiencing intense heat, and long-term power outages due to missile strikes by the russian occupiers on energy infrastructure facilities led to interruptions in ventilation systems on dairy farms. Cows received heat shocks, which affected the reduction of their productivity.
Today, milk processing enterprises are interested in sending as much goods as possible for export, taking advantage of the increase in prices for exchange goods on foreign markets, including butter, milk powder, cheeses, and whey. Despite the increase in purchase prices, the profitability of dairy production remains high due to the increase in export prices for exchange goods.