milk,
milk prices,
grades of milk
Further growth in raw milk prices is unlikely
In Ukraine, the price increase for raw milk continues, but it is no longer as active as in previous months. There is no reason for further price growth due to the decrease in export activity in the dairy market during the New Year holidays. An upward revision is possible only for prices that are in the corridor below the maximum, — reports Georgy Kukhaleyshvili, an analyst of the Association of Milk Producers.
The average purchase price for Extra Grade milk as of December 10 was 19.70 UAH/kg excluding VAT, which is 0.65 UAH more than a month ago. The price range for this grade in farms varies from 18.50 to 20.50 UAH/kg excluding VAT. The lower limit of the price range increased by 0.75 UAH, and the upper limit increased by 0.70 UAH over the last month.
Higher Grade costs an average of 18.70 UAH/kg excluding VAT (+0.30 UAH). Prices for Higher Grade milk range from 17.80 to 19.50 UAH/kg excluding VAT. Based on the results of monitoring in the first half of November, the lower limit of the price range increased by 0.80 UAH, and the upper limit increased by 0.40 UAH.
The average price for Grade I was 17.65 UAH/kg excluding VAT, which is 0.50 UAH more than the price in the first half of November. The minimum price in farms was 16.50 UAH/kg and increased by 0.50 UAH over the last month. The maximum price was 18.50 UAH/kg and increased by 0.50 UAH.
Accordingly, the weighted average price of the three grades was 18.68 UAH/kg excluding VAT, which is 0.48 UAH more than a month ago.
Georgy Kukhaleyshvili notes that the price increase for raw milk in Ukraine continues, but not as actively as in the previous month. The demand for raw milk in Ukraine still remains higher than the supply, but is already starting to decrease compared to the situation on the market in September, October and early November. The demand for finished dairy products also outweighs the existing supply. It is likely that further growth in prices for raw milk will restrain the decrease in the export volumes of exchangeable goods. Most likely, activity in the dairy market will stop when the New Year holidays in Europe take place. Ukrainian producers expect a decrease in the sales volumes of fresh dairy products due to the increase in prices for goods in recent weeks.
milkUa.Info